It’s easy to forget that you may not be covered for medical emergencies overseas.
By Dwarka Lakhan |
As you prepare for overseas vacations it is important that you obtain adequate travel health insurance – for protection against unanticipated costs that may arise on your trip. These costs may include emergency medical, dental, transportation and other related expenses. They are beyond those provided by basic travel insurance, which usually covers only expenses relating to trip cancellation, missed flights, lost or damaged luggage and, in some cases, accidental death.
Some people mistakenly believe that the basic travel insurance they get when buying their tickets protects them from all the risks they face when travelling. This form of travel insurance, however, does not cover health-related risks – making it inadequate for most people, especially if they are planning to remain abroad for an extended period of time. It is no secret that becoming ill or injured abroad can cost a lot of money. In the U.S., for example, the cost of intensive care can run as high as US$10,000 a day, depending on the care required. Provincial health plans will normally pick up only a portion of the cost, but that varies from province to province. Many Canadians have become so used to the protection they get at home that they forget their provincial health insurance card is often useless abroad.
What expenses it covers
Generally, a travel health insurance policy covers emergency medical expenses beyond the amount provided by provincial plans and any supplemental health plans your client may have. The expanded coverage can include hospitalization costs, doctors’ bills, prescriptions, Xrays, diagnostic tests, dental treatment, air and ground ambulance and private nursing. It can also cover transportation and related costs if your client has to return home. If your client is hospitalized, the transportation coverage can include the cost of having a companion at his or her bedside, or for the return to Canada of dependent children along on the trip.
The policy might also provide a daily allowance for commercial accommodation and meals for the policyholder and other covered parties, if a medical emergency prevents a return to Canada.
Types of policies
Travel health insurance policies can provide protection for single or multiple trips. A single-trip policy usually insures your client and his or her dependents for one trip that lasts up to 183 days, while a multi-trip policy might cover unlimited travel annually, with each trip lasting for a defined number of days. In this case, if your client’s trip exceeds the length of the trip stated in the policy without permission from the insurance company or agent, the policy becomes invalid. The question to ask beforehand is whether your client can get an extension or a new policy while outside Canada, if necessary.
Exclusions to watch for
You should know that travel health insurance policies vary widely in benefits, coverage and cost. For instance, some policies specify a maximum amount of benefits. Some do not cover certain incidental expenses such as accommodation or medical tests, or may cover only a percentage of costs. Some policies exclude travel to specified countries.
One significant exclusion to watch out for is protection against pre-existing conditions. Some policies do not cover – or provide only limited coverage for – health conditions that you were diagnosed avoid disappointment if indeed a claim is made.
Costs
The cost of travel health insurance depends on several factors, among them your client’s age, health condition, duration of the trip, level of benefits, extent of coverage and deductible amount. You should get a number of quotes before you make a purchase because the cost of the same protection can vary among different companies.
Where to get travel insurance
While travel health insurance can be acquired from many companies that offer life and health insurance – a list can be obtained from the Canadian Life and Health Insurance Association – you may find it more convenient to purchase coverage from associations to which you belong, such as the Canadian Automobile Association and the Canadian Association of Retired Persons.
Check out services
Aside from the features of a policy, service should be an important consideration when choosing a particular insurance company because emergencies can happen anywhere, anytime.
Some companies claim to offer 24-hour, seven-day aweek service. They say they’ll offer help in finding a doctor, hospital or other medical facility, assist in locating translation services and keep the family informed of the sick traveller’s condition, among other services.
Although you do not want to be faced with a medical emergency when you are overseas, you should ensure you have insurance protection that can at least cover the cost of a potential emergency.
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| Dwarka Lakhan is the Editor of CRA Magazine. He is the President & CEO of the Caprion Group of Companies which provides integrated consulting services to the financial services industry.
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