Travel Insurance 101

It doesn’t matter where I go outside the U.S., if I’m traveling overseas I always purchase travel insurance. ESPECIALLY when traveling in a COVID-19 world. There are so many unknowns, and it’s one of the tools you can use to best protect your vacation investment, health and well-being.

I know some might be skeptical of the coverage, and might be convinced that you’re covered through your credit card or U.S. health insurance. But for me, when it comes to my safety, health and financial wellbeing I don’t mess around and really value the peace of mind travel insurance provides. (And to catch-up on the debate, check out this recent article from USA Today, “Five myths about travel insurance.”)

Read below for more information about travel insurance, what you should look for when picking out a travel insurance policy, and a few recommendations on what companies to consider if you’re shopping for travel insurance.

First things first: the coverage elements that make up most travel insurance policies can be dividend into two buckets:

• Pre-trip coverage such as trip cancellation due to an emergency, death, financial default or a job layoff, weather etc.

• Post-departure coverage such as: medical treatment while you’re traveling, evacuation from a foreign country, trip delays and cancellations, loss luggage, access to an emergency phone number while traveling, repatriation, etc.

When evaluating a policy (or whether or not coverage through your credit card or U.S. health insurance policy is enough) keep the questions below in mind, but know that the specific questions you need to ask will completely depend on your own health and financial situation, comfort level with coverage and risk. Run through a few scenarios of things that could happen while traveling to ensure your coverage will meet your needs:

• If you lose your job a month before a trip you’ve pre-paid for and you need to cancel your trip…

• If you slip in a doorway at your hotel, sprain your ankle, and need to see a doctor….

• If you break your leg while hiking and need to be evacuated by air to a local hospital…

• If you miss a flight connection and your cruise leaves without you…

• If your wallet is stolen out of your hotel room…

• If you’ll be covered even while engaging in high-risk activities, such as paragliding…

• If you’ll be covered if a pre-existing condition flares up and requires treatment on vacation….

• If something happens (medical, theft, cancellation, etc.) do I have to first exhaust benefits through my primary home coverage before filing a claim with my travel insurance?

• Do I have to pay a deductible to file a claim with my travel insurance?

• Do the cancellation benefits apply if you’ve already paid an initial trip deposit?

• If you don’t need typical trip cancellation coverage (i.e. you have minimal out of pocket expenses, or expenses you can’t recoup) is it an option to put the trip value at $0 on your application so that all the other policy benefits still apply, and at a lower rate?

• Are you on Medicare? If so, there are very few instances where Medicare will cover you for medical emergencies and expenses outside the U.S. Read more by clicking here.

• If you have purchased an insurance policy with a cruise line or specific tour operator, make sure you understand the true limits of this coverage, so you can determine if additional coverage is necessary.

With the ongoing COVID-19 pandemic travel insurance companies have amended their policies in different ways. So it’s especially important to read the fine print and understand the carriers position on the following questions:

• Does the insurance carrier treat COVID-19 as a medical condition that is subject to their standard medical policies? (i.e. if you get COVID-19 prior to departure and need to cancel, does your trip cancellation coverage still apply?)

• Before making a trip deposit OR buying travel insurance, check to see if your policy, or the policy you’re considering, has an associated purchase window (i.e. trip cancellation coverage only applies if you made your deposit 14 days or less prior to your travel insurance policy binding.)

• How is your policy, specifically trip cancellation coverage, impacted if a country changes entry requirements, if the US, CDC or WHO change their threat assessment, or entry/exit requirements between the time you bind your travel insurance policy and your travel dates? Does trip cancellation coverage over you if you’re no longer allowed to enter the country?

• How does your policy, specifically trip cancellation coverage, treat requests for cancellations because someone you know is sick, specifically with COVID-19, and you need to stay home to provide care? Or what if someone in your traveling group contracts COVID-19 and cannot travel - as a companion traveler does your policy apply?

• Unless you have ‘cancel for any reason’ coverage included in your travel insurance policy, most carriers will not accept ‘fear of COVID-19’ as a valid reason for filing a trip cancellation claim.

• If you end up filing a claim based on medical reasons (i.e. because you contracted COVID-19 while traveling, you broke your ankle while traveling, etc.) make sure you know what documentation is required. This could include a medical report from a local doctor you see while traveling.

• Does the country you’re traveling to require that you show proof of a travel insurance policy? Make sure you check all government websites to understand the entry requirements. If you’re required to travel with a letter showing proof of coverage, make sure you give yourself plenty of time (at least 10-14 days) before your departure to get the letter.

As you can see, shopping for travel insurance these days is about as clear as mud. Because it’s SO CRITICAL that you really understand the nuances of your policy, I recommend you call the customer service department of the company you’re considering. Run them through the situations you’re most concerned with to understand how your travel insurance coverage would apply in each situation.

Here are two travel insurance carriers I suggest you consider, but know that there are many options out there!

Travelex Travel Insurance
Website, click here
If you have specific questions about coverage offered in each plan please call the Travelex Customer Service department at 1.800.228.9792. When you purchase your policy please add my location number 37-0094 and my Agent Code “MC.”

Travel Insured International
Website, click here
If you have specific questions about coverage offered in each plan please call the Travel Insured International Customer Service department at 1.800.243.3174. When you purchase your policy please add my agency number, 35669, to the booking

Good luck with your travel insurance shopping. I know it feels like the Wild Wild West, but trust that asking thoughtful questions, and understanding what to do in the worst-case scenarios, will give you the peace of mind to make the smartest decision for you and your family.

Mary + the Living Big Travel team