A few years back, the national media shared a story of a Saskatchewan couple who incurred a near million dollar medical bill when their baby girl arrived pre-maturely, crashing their Hawaiian vacation. Turns out, this little one’s arrival was not covered by the family’s travel insurance and they are now responsible for raising both the child and the money to pay for her delivery.
If you want to avoid spending a million dollars yourself, baby, read on.
Slow down.
With the proliferation of online and telephone insurance sales, I think speed kills…claims that is. Clients will often call me days or even hours before a trip to get their travel coverage. It’s true that with a credit card and few clicks, I can easily have them on their way. But what if they are unsure of how to answer a medical question? What if – in their haste to get their bags packed – they “gloss over” an answer? It’s too late to find out you answered a question incorrectly when a claim gets denied. Worse again, even if the incorrect answer has nothing to do with the claim, it could leave your policy null and void…two words no one wants to hear while lying in a hospital bed in Mexico.
Always give yourself ample time to apply, guaranteeing that any uncertainty can be clarified with a questionnaire and your doctor’s signature. These disclosures are typically mandatory for those over age 55, but I recommend them for anyone who is unclear about any aspect of their health. Assume nothing and get everything in writing.
Stable or stay home.
Travel insurance is designed to cover “sudden and unforeseeable” medical “emergencies” only. As such, all policies have a minimum period of time prior to your bon voyage when your health – including issues related to any pre-existing conditions – must be “stable.” Even annual or multi-trip plans, carry this stability requirement prior to each and every departure (not just prior to purchasing the policy). Normally, to be covered, insurers look for the following 3 to 6 months prior to your excursion:
- Having no new symptoms;
- Having no increase in the frequency or severity of existing symptoms;
- Having no test results outstanding and no tests or referrals pending;
- Having no new medications or treatments prescribed;
- Having no change (including a decrease) in dosage of medications already prescribed;
- Having no admission to hospital; and
- Having no advice not to travel due to a medical issue.
Bottom line is that if it would be reasonable to assume that complications could happen while you were away, it would also be correct to assume your claim would be denied. As a wise advisor once said, “A yellow light always turns red.”
Exclude me.
I’ve read more than one travel insurance policy in my day (what can I say, I don’t get out much), and they all contain exclusions beyond this pre-existing stability clause. Some of the more common exclusions are listed here:
- Emergencies resulting from hang-gliding, rock climbing, parachuting, skydiving or other extreme adventure seeking activity;
- Emergencies related to pregnancy and/or childbirth within 9 weeks of the expected due date;
- Medical condition you suffer or contract while in a specific country, region or city for which the Department of Foreign Affairs and International Trade Canada has issued a formal warning advising Canadians not to travel;
- Emergencies resulting from medications, alcohol or drug abuse;
- Emergencies that were treated before getting permission from the insurance provider to do so;
- Emergencies that arise after you have failed to advise the insurer that there has been a change from non-smoker status; and
- Any treatment that is not for an emergency.
For travelers, knowing what is not covered is often more important than knowing what is.
Know before you go.
With an aging population of retirees flocking to destinations south and sunny, travel insurance claims (and stories like the one we heard this week) are likely to become more plentiful. The Travel Health Insurance Association of Canada publishes a guide for Canadian travellers entitled, “Travel Insurance – In Case of Emergency,” to hammer home the important points you should know before leaving home. Get your copy here and know before you go.