Demystifying Travel Insurance: Part 2

Understanding trip insurance is critical for anyone who travels in today’s world.

In this second part of my month-long series on travel insurance, I’ll cover a number of additional and important clauses. Some you may never have thought about, such as emergency evacuation and hospital of choice coverages.

It is critical to read a policy either 1) before buying (preferably), or 2) during the free policy review period.

Keep in mind that each policy (even different policies from the same insurance provider) will have widely varying terms and conditions.  What I’m trying to do is to shed light on the types of different coverages available and the ways in which they typically work.

Also remember that if you do your policy evaluation (reading the fine print) during the free review period, the number of days since the first trip payment are still running.  Thus, if you decide to cancel the first policy and then buy a new one, be mindful of the number of days since your first trip payment, which is a factor that may limit a number of important coverages.  Pre-existing condition waivers and provider default coverage, for example, often require that the insurance be bought within a certain number of days of that first trip payment.

1. Medical and Dental. These are good options for international travel and for people uninsured or underinsured. Read the policy first so you know what isn’t covered. Should you have a claim, you’ll also need to release your medical information and retain copies of all bills. Some travel medical insurance will act as secondary insurance (in the event you have primary coverage from another source), while other insurance offerings (or upgrades) will act as primary. There’s a deductible, exclusions and scheduled limits of reimbursement. Trip medical and dental covers illness or injury received during the trip for up to a specified period of time (often one year), and typically only if initial treatment for the problem was received during the trip.

2. Emergency Medical Evacuation. With this provision, you can receive what the provider deems “warranted” emergency evaluation while on your trip, per the policy schedule, and upon doctors orders. Coverage may only be provided if “adequate” local care is not deemed available. Coverage for a travel companion may also be included. This may also pay for transportation, should an insured die during a trip.

3. Hospital of choice. This coverage, often included with emergency evacuation, allows for emergency relocation to a hospital of your choosing. You may be able to choose a hospital not in your state or country of residence.

4. ID theft. Identity theft coverage is an option or inclusion on some policies. It may not be particularly useful, mostly because it helps with advocacy rather than to provide reimbursement should a problem arise. The service, often supplied by a third party, becomes available on your scheduled trip departure date for a specified period of time beyond the actual trip dates.

5. Hazardous Activity Coverage. If you plan adventure sports like bungee jumping, scuba diving, surfing, parasailing, etc., this could be a good option for medical needs. It is usually found as an option on a travel medical plan, rather than on a travel insurance package.  Check the policy for a complete list of sports covered.

TIP: Travel supplier restrictions. Many policies limit coverage to exclude certain travel providers. For example, Go! Airlines in Hawaii may not be covered. Check the policy before buying to be sure the companies whose services you will be using are insured. Some of the restricted suppliers may be in bankruptcy, while others may be considered to be in financial trouble.