Cutting short, postponing, or canceling vacation plans because of an illness or injury can have costly ramifications, especially for uninsured travelers.
“There are more than memories at stake – your money and health are on the line, too,” Daniel Durazo, director of marketing and communications for Allianz Global Assistance, told pop culture magazine Rolling Stone. “If you’re traveling outside the US, it is absolutely essential that you purchase travel insurance that includes emergency medical and transportation benefits.”
What exactly is the kind of protection travel medical insurance provides? In this article, Insurance Business explains how such policies work and what their benefits are by answering the top seven questions American travelers have with this type of coverage.
Travel medical insurance helps cover the cost of emergency medical expenses during a trip. It follows a reimbursement-based model and pays out up to the plan limits. Policies come in two forms – standalone travel medical insurance, which can be purchased separately but often excludes trip interruption and baggage loss coverage, and emergency medical insurance as part of a comprehensive policy, which features a wider range of protection.
Coverage varies between insurance providers but typically includes the following:
Injuries due to alcohol and drug abuse, and those resulting from extreme sports or activities are often excluded from coverage. Pre-existing conditions may also be not covered, but travelers can access a waiver, depending on when they purchased the travel policy.
One common reason why many US travelers put off taking out emergency medical insurance is the belief that it is an unnecessary expense, especially if they already have health insurance. However, experts say that many of these health plans, including Medicare, provide little to no coverage outside the country.
“Domestic healthcare plans are usually not accepted outside the US, so it’s especially important to get travel insurance with medical coverage and emergency medical transportation when traveling internationally,” Durazo said. “If you do become ill or injured while traveling, these benefits can cover your medical costs, including doctors’ fees and hospital costs.”
“Overseas medical bills and costly evacuations can be financially devastating for uninsured travelers,” he added.
Unlike at the onset of the pandemic when COVID-19 coverage was rare, travel insurance providers have since stepped up their game and started offering protection against coronavirus-related medical expenses. But not all insurers do, so it is important for travelers to verify what level of COVID-19 coverage is provided by a policy before purchasing.
Typically, coronavirus medical coverage will fall under the limits of the plan’s travel medical insurance and pays out costs associated with contracting COVID-19 during the trip, including hospitalization, doctor fees, and medication.
There are several factors that impact the cost of travel medical insurance, including a traveler’s age, country of destination, length of trip, and level of coverage.
Insurance Business did a quick search of travel medical coverage for a two-week stay in the Bahamas worth $3,000 for a 30-year-old tourist from Texas on InsureMyTrip’s quote aggregator and found the cost of policies to be between $14.14 and $188. When changed to a comprehensive plan, premiums ranged from $64 to $244.67. These policies cover a trip from June 17 to 30, 2022.
Ideally, travel medical insurance payout should be enough to cover the cost of treatment should the policyholder undergo an emergency procedure and the cost of a medical evacuation should they be airlifted to safety.
According to Forbes Advisor, good plans provide at least $100,000 in coverage for medical expenses and $250,000 for emergency evacuation.
The consumer financial advisory website added that it is best to purchase travel medical insurance within the first two weeks of paying their first trip deposit as it gives policyholders access to a pre-existing medical condition exclusion waiver.
Travelers, however, can still avail of travel insurance until the last minute, although they would not be able to access some prime coverage features.
Deciding what policy is best depends on a traveler’s personal situation and any additional protections they may already have. Tourists can pick from a range of policies that suits the type of travel or coverage required.
Depending on the plan, travelers can choose between primary and secondary coverage. Primary medical plans pay out before any other health insurance the policyholder has while secondary policies allow a person’s other health insurance plans to pay first.
Holiday-goers can also avail of a single- or multi-trip policy, depending on how much they travel.
“Single trip coverage begins when you leave your home and travel to your destination (or destinations) and ends when you return home. The plan covers you for the duration of your trip,” Forbes Advisor explained. “Also known as annual travel insurance, [multi-trip travel medical insurance] covers you for a calendar year and is good for travelers who take three or more trips per year.”
