Saturday, January 21, 2012

Are You and Your Trip Protected?



Recent events with the Cruise ship “Costa Concordia” has brought the risk we takes when traveling on vacation to the forefront of our thinking. We've all read about the tragic impact this event has had on the lives of the passengers and their families. However, some of those passengers will be affected more than others because some opted not to insure their vacation.

These kinds of risks, while they cannot be totally eliminated, can be planned for. The answer is insurance. Yes, I said insurance.

You may not be aware that you can insure your trip but you can. Sadly, about 50% of the time people offered the opportunity to do so opt not to buy it. So they invest thousands of dollars in a trip and then reject the security of insuring their trip because it cost a couple hundred more. I believe most of the time when this happens it does so because people don’t really believe they will need it. However, the simple truth is . . . they do!

Here are a few things you might want to consider before closing the books on your trip without buying travel insurance:

Medical Emergencies do occur and they do so at ALL ages. When you have a health emergency outside the United States, you could be left to pay for everything out of pocket -- even if your insurance might provide some reimbursement.

Medicare and most insurance does not pay for healthcare outside of the United States, so while your dusting-off your passport (you do need a passport if traveling to a foreign country) and planning that trip, it's good to know what you and your trip are protected.

An emergency health care event requiring hospitalization and medical evacuation can cost up to $100,000. In fact, in most such cases the only way you can get discharged is if the local medical/hospital cost are paid prior to any evacuation.

The U.S. State Department recommends travelers contact their health insurers to find out about coverage ahead of time. By the way, don't expect to use your insurance card as you do at home. For those with coverage, it is likely to be a percentage reimbursement and they will not pay directly the service provider . . . that will come out of your pocket.

Truth is, there are very few places you can travel that would warrant not having medical and evacuation insurance. There are a few places like Sweden where they have an excellent, socialized medical care so health cost will be free there. Anywhere else you'll need the insurance . . . so why take a chance?

The State Department maintains lists on its website of companies that provide medical evacuations as well as insurance to cover such a potentially costly endeavor. Your travel Agent (another reason to use a Travel Agent) can recommend a good Travel Insurance company. We recommend Travel Safe but there are other companies such as International SOS, and Travel Guard. I believe the Department of State has a longer list of companies on their website that can be safely used.

These same companies also provide resources in the event your trip cancels or is interrupted for any qualified reason. Some even cover cancellation for any reason.


However, before you purchase Trip Insurance you should make sure what you are buying will meet any travel/medical needs that may arise on your trip. I suggest you ask the following questions:

1. First and foremost check with your healthcare insurance provider and get the facts in writing about what they will and will not pay if you become ill or injured while in a foreign country. If they do pay, find out if they pay directly to the suppliers or do they require you to pay upfront and then they will reimburse.

2. Does the policy cover emergency expenses while abroad and if so what kind?

3. If your overseas emergency requires returning to the USA for treatment will the insurance cover the cost of evacuation?

4. Will the insurance cover you if you are engaged in “high risk” activities such as zip-lines, parasailing, hiking and climbing, off-road driving, and accident in general.

5. Be sure and ask about coverage for pre-existing conditions.

6. Are payments guaranteed and does the insurance pay directly to doctors, hospitals and other service providers or do they simply reimburse you for out of pocket expenses.

7. Do they have a 24/7 support center that can help you with arrangements.

So, before you say no and sign the insurance waiver make sure you have counted the cost and evaluated the position you will find yourself in should you become seriously ill or injured. I suggest, no, I highly recommend that you insure your trip and when you do make sure it includes healthcare and evacuation coverage as well as cancellation or trip-interruption coverage. It will give you one more reason to enjoy your vacation fully.

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