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 The
Money Management Newsletter: General
Interest
Getting Sick when outside of Canada:
A look at the cost of travel insurance
By Heather Freill, Financial Reporter
Money Management Newsletter
Most people who love to travel, or
those who travel frequently know the importance of purchasing a comprehensive
travel insurance package before leaving on a trip. Travel insurance protects
you out of province or country from unforeseen accidents or illnesses.
Without travel insurance, the cost of prescription drugs or hospital care
can skyrocket.
So, what is your best bet when looking into the purchase of travel insurance?
Shop around.
Competitive rates
Most insurance companies do offer some form
of travel coverage, bringing into consideration factors such as age, degree
of coverage and medical health condition to determine their rates. It is
important to bear in mind that each companies' rates will differ and it
is in the customers best interest not only to focus on price but also on
what type of coverage is offered.
Deductible savings
A little extra research on the part of
the traveler can sometimes lead to impressive savings and may be worth the
time and effort. For example, some insurance companies require the traveler
to pay a deductible in addition to their travel insurance. The deductible
amount can vary depending on age but often results in lower insurance rates.
Other providers may not require a deductible but instead present it as an
option for the customer to pay in order to receive reduced rates. Insurance
agencies may also have additional deals for those purchasing more than one
policy or for those going on more than one trip.
Medical questionnaires
Depending on the insurance company,
prospective travelers might be required to complete a medical questionnaire
before they are assessed a rate. These questionnaires are designed to determine
the health of the customer and in many cases must be completed regardless
of the age of the person requiring coverage.
The results of a survey (see below) of 23 randomly chosen insurance companies
conducted by Fiscal Agents Financial Services Group in Oakville, Ontario,
shows that the completion of a medical questionnaire to determine rates
is becoming more popular, especially for those between the ages of 61 and
81. A number of the companies surveyed said that they have switched to this
method within the last year and require a questionnaire to be filled out
in all cases.
How much is my
deductible?
Nine of the providers polled required
their customers to pay a deductible ranging from $200 to $250 U.S. and $250
Cdn. and were able to provide slightly lower rates for travelers between
the ages of 61 and 76 than companies not requiring a deductible. Prospective
travelers around the age of 81 should be aware however that paying a deductible
did not offer much of a lower rate on their insurance and in one case their
deductible was raised to $1000 Cdn.
Non-deductible
coverage
For companies not requiring a deductible from their customers, of the companies
we surveyed, Voyageur Insurance provided the best overall rates for travelers
between 61 and 76. Thomas Cook's snowbird insurance package offered the
best price for travelers aged 81. CIBC
came in as the highest for those looking for coverage at the age of 61.
Blue Cross (Ontario) charges most for their coverage between the ages of
66 and 71. Bank of Montreal was the highest for age 76 and Atlantic Blue
Cross rated most expensive for insurance over the age of 81.
Your best chance at success when purchasing travel insurance is to ask a
lot of questions and become very comfortable and familiar with the coverage
that you eventually decide on. Travel insurance, like any other type, is
there to protect you and will serve you best when you find the one that
suits your needs.
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, Fiscal Agents Money Management Newsletter
25 Lakeshore Road, Oakville, On L6K 1C6.
(905) 844-7700
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