Setting the Record Straight on Travel Insurance

Do you ever wonder what travel insurance really is all about?  Read on to learn why you need it and what to look for in the fine print.

As a travel agent, Í am always talking about travel insurance/protection with my clients.  I use it myself when I travel overseas. Trips to Europe are big ticket items and the purchase needs to be protected.  But that is only part of the protection offered.  Medical plays a huge part as well. 

I want to share with you some of the most common misconceptions about travel insurance.

I have medical coverage so I’m good

Not so fast…many US medical insurance plans DO NOT cover treatment in Europe. 

Medicare for example does NOT cover you for any medical treatment overseas.  You might be in good health but never underestimate the discomfort of an intestinal bug, a sinus infection, or an ankle you twisted on the cobblestone. 

The big concern is something that requires hospitalization or medical evacuation.

I had a client touring the UK who had to be put in a hospital for pneumonia.  She had no insurance to pay for the five-day hospital stay or any of her treatments.  I never found out what she ended up paying or what it cost her family to fly over and stay with her for 10 days until she could leave.  I can tell you that there are policies out there that would have covered that entire cost.

I have a pre-existing condition so I may not be eligible for insurance

The insurance company’s definition of a pre-existing condition may not be what you’re thinking. 

Any policy will spell out the definition of a pre-existing condition.  In most cases the definition will reference a look back period which is usually somewhere between 90 days and 6 months prior to purchase of the policy.  This look back period defines what pre-existing means to that specific company.  If the look back period is 90 days, then what they are looking for is any change within 90 days prior to purchase of the policy. 

Let’s say you’re a diabetic and on medication.  You haven’t had to visit the doctor for any changes in your treatment for the past 90 days.  If you purchase insurance today with a 90 day look back period, your diabetes would NOT be considered a pre-existing condition under their terms. 

It’s all about reading the definitions!

I have a cancel-for-any-reason policy so I don’t have to worry about anything

Well, it’s all in the fine print, isn’t it? 

Even a cancel for any reason policy has some fine print.  I had one client whose pet got sick the day before they were to leave and immediate surgery was required.  The client called her insurance company and was told the policy said the cancellation had to be made no later than 48 hours before travel commenced.  She was flat out of luck.

Another “trick” I’ve seen is an insurance company requirement that ALL your arrangements have to be covered by the plan.   That includes hotel, tours, air, etc.  The client had insured her flights through the airline and not the insurance company covering most of her trip.  In doing so, she voided the whole policy and got no reimbursement for anything but air when she had to cancel for medical reasons.

I should be able to cancel since I have jury duty/deployment/job issue

Not likely I’m afraid.  Most policies specifically rule these out as reasons to refund your money.  You can purchase policies that will cover these reasons but you have to make sure they are not listed as exclusions. 

This is a national emergency… surely I’ll get my money back!

This is perhaps the hardest to understand and one that we all learned during COVID. 

Insurance policies will always have a page dedicated to policy exclusions. 

Before COVID, almost every policy out there excluded pandemics, natural disasters, and war as reasons to pay out on the policy.  That includes cancel for any reason policies as well.  Thousands of travelers were not able to recover the cost of trips cancelled for COVID-related reasons.  Now companies are being forced to rethink at least the pandemic exclusion.

Some other factors to consider

I’ve just talked about medical and cancellation issues but there is so much more.  Most travel protection plans include at the very least

• Trip Delay
• Trip Interruption
• Baggage Delay or Loss

Final Thoughts

Travel insurance is not optional for most of us going overseas.

It’s important that you do your research when looking to purchase and make sure your personal needs are addressed by the policy.

Also read the entire policy!  Travel insurance company Squaremouth estimates that only 1% of those purchasing policies actually read all the fine print. 

If you have done your homework and purchased the right policy for your needs, you can enjoy your vacation knowing that you have protected both yourself and your investment.