Are You Covered when You Travel?

My daughter and I were talking about how much we love to travel when she told me she might be going on a trip with a girlfriend, we’ll call her Lily. When Alex told Lily that she’d want to be back by a particular date, Lily asked why. Alex said that her travel medical plan wouldn’t cover her for longer than a 60-day trip. Lily announced that she never travels with medical insurance coverage.

I sighed. A lot of people don’t. They’re under the impression that if something bad happens to them while they’re gallivanting around the world they’ll be covered by Canada’s very generous health coverage. And since we don’t get bills for what we use when it comes to health benefits in Canada, we have no idea what those benefits are worth.

No one expects to fall ill when travelling, though it happens all the time. Most things are quickly resolved. The bigger things come with hefty price tags and that’s when we hear the story in the news. There’s the story of the woman who suffered kidney failure. The bill: $128,000. Or the man who suffered a fall in Michigan and racked up $168,000 in medical bills. Or the couple who were in a car accident resulting in $325,000 in medical costs.

So do you have an extra $100K sitting around to take care of medical bills you might incur while travelling? Since provincial plans pay only a few hundred dollars a day for hospital coverage, you’d better. Or you could simply fork over some money for travel medical coverage. Would you rather spend $60-$300 now (depending on the length of your coverage) or pony up hundreds of thousands of dollars later? Rhetorical question, right?

According to the Travel Health Insurance Association of Canada, medical expenses of more than $1,000 would be problematic for a third of travellers surveyed, while expenses of $5,000 or more would be tough on another third of travellers. Can you imagine how medical expenses in the $100,000 range would affect your financial security?

Even if you’re heading to the U.S. for a day-trip, insurance is a must-have since any slip can be costly. Your best bet if you cross the border frequently is to buy a plan that covers you for multiple trips. Coverage is usually provided for 12, 30 or 60 days with no limits on the number of trips in a 12-month period so they’re perfect for cross-border shoppers, business travellers or people who leave Canada more than once a year. Take just two trips in a 12-month period and the plan will pay for itself. Planning to be on the road longer than 60 days? Single-trip plans can cover you for up to 183 days, perfect for those with a home away from home.

Some credit cards provide travel medical coverage. If you’re a frequent traveller the annual credit card fee is offset by the savings in not having to buy travel insurance privately. Keep in mind there may be specific restrictions. For example, you may need to purchase your travel with that card for the insurance to kick in.

Some people have travel medical coverage through their group benefits at work. Don’t wait until the last minute to enquire about your coverage. Know what you’re entitled to and whether you must put out the money and be reimbursed or can ask for direct billing to your insurance provider. And don’t leave home without the telephone numbers and paperwork you will need if you do end up seeking medical treatment.

Even if you’re leaving one province in Canada to travel to another you should consider medical travel insurance. While most provinces have reciprocal agreements for medical coverage, there are things that aren’t covered, like transportation costs. A victim of a polar bear attack got stuck with a $13,000 bill for air ambulance to Winnipeg because she didn’t have out-of-province coverage.

As for people who choose to visit you in Canada from another country, they aren’t covered under our medical system. Can you imagine if your mother-in-law was staying with you, fell and broke something? Would you say, “Sorry m’love, but no insurance, no medical care?” You’d pony up, right? So you’d best ensure you’ve got coverage for visitors in place if they are among the many who choose to travel without buying their own travel medical insurance.

Make sure when you buy your insurance that you answer all those questions you’re asked correctly. Screw up even a little and you could find your claim denied. Here are some other questions you might want to ask as you shop for coverage:

How long does the coverage last? If the trip is extended can you extend the coverage?
Are there restrictions or limitations on the policy? (Think limitations due to substance abuse or restrictions on activities like sports.)
Are pre-existing conditions covered?
What is your maximum coverage and what are the deductibles or copayments that would apply to a claim?
Are certain countries/locations not covered?