Everything You Need to Know About Travel Insurance

Everything You Need to Know About Travel Insurance

Travel insurance can cover medical expenses and cancellation costs when your standard health plan doesn’t. But before purchasing it is essential that you understand all of your options as well as any limitations, exclusions and rates before committing.

Plans that offer more comprehensive medical coverage tend to cost more than those offering less benefits like rental car collision coverage or Cancel for Any Reason clauses.

What’s Covered?

Travel insurance provides financial coverage against any losses that might occur while on or before a trip, typically costing 4-8% of total trip cost. Plans typically provide protection for cancelled or interrupted trips as well as emergency medical care and transportation back home if needed.

However, unlike some forms of insurance policies, travel policies typically don’t require you to pay a deductible or flat amount upfront before being reimbursed for your loss. Therefore, it is crucial that you review each policy’s details thoroughly prior to purchase in order to understand what’s covered as well as any restrictions.

Note that certain coverage, like trip cancellation and pre-existing condition waivers, are only available if you do not already have other policies or benefits, such as credit card insurance or employer health plans. In such instances, it may be possible to purchase additional protection for high-risk activities or extend coverage accordingly; most travel insurers provide 24/7 assistance so if anything goes amiss on your trip you can reach them directly for support.

Pre-Existing Conditions

Travel insurance companies look at your medical history when reviewing any claims while traveling; without a pre-existing condition waiver in place, coverage for you could be denied and this should always be kept in mind when purchasing a plan with this benefit. Hence it’s wise for travelers with any health issue or condition to purchase plans with this feature as soon as possible.

Under a pre-existing condition waiver policy, the insurer will only examine your current health. They will determine whether the health concern has not changed or worsened over a specific period that differs by provider; and will if necessary waive coverage until that period has elapsed.

To qualify for a pre-existing condition waiver, your purchase should take place between 60-180 days of when your application was accepted by an insurer and all initial trip expenses, such as airline tickets, hotel bookings and tour reservations, were paid in full within this window. Furthermore, “prior creditable coverage” must exist at the time of your application for coverage – meaning an international travel medical plan in force at that point in time must also exist at that point in time.

High-Risk Activities

Even though your trip and activities might not have as significant an effect on your coverage as medical conditions or smoking status, the type of trip you take and activities you partake in might still make a difference. For instance, traveling to high risk countries (defined as having higher danger than Canada) or engaging in extreme sports can reduce coverage significantly.

Individuals engaging in high-risk leisure activities, such as rock climbing, bungee jumping and kayaking may require special travel insurance plans to cover these activities. Individuals associated with government, military or non-government organisations might also require high-risk coverage plans. You should compare various policies until finding one that best meets your needs; additional coverages to keep an eye out for include emergency medical evacuation coverage as well as baggage loss or delay coverages.

Cancel for Any Reason

Cancel for Any Reason, more commonly known as CFAR travel insurance coverage, allows travelers to cancel their trip without providing a qualifying reason. While more costly than traditional policies, CFAR policies provide travelers with greater flexibility should something arise which requires cancellation; due to Covid pandemic issues overseas and air travel has become unpredictable and this flexibility has become increasingly sought-after.

CFAR coverage typically reimburses up to a specified percentage of non-refundable trip costs regardless of the cause for cancellation, making it an additional form of protection that must be purchased within an agreed-upon window following initial deposit of an itinerary.

Though cancellation can happen for various reasons, selecting the most comprehensive policy to protect yourself can make all the difference in coverage and savings. We highly suggest reading customer reviews on major review websites before adding CFAR as it will give invaluable insights.

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