What is Travel Insurance?

Definition of Travel Insurance

Travel insurance is an insurance plan that provides health care coverage for unforeseen illnesses or accidents when traveling outside of your home province or country.

You need travel insurance because your provincial government’s health insurance may not provide coverage outside of these areas. Travel insurance policies vary from company to company, but typically cover emergency care and transport, hospital services, dental accidents and emergencies, surgery, accidental bodily injury, X-rays, visits to specialists, meals and lodging, prescriptions, and cremation or return of the deceased’s body.

The policy also might cover the expense of making an emergency return home to receive medical treatment; your additional lodging expenses if your return home is delayed because of a traveling companion’s medical emergency; and the return of traveling companions, children and pets to your destination if you experience a medical emergency.

Example

Mrs. Van Smootensworth lives in Ontario, Canada but is going to visit her grandmother in Florida for 10 days. Because she will be traveling outside of her home country, she will need to purchase travel insurance to make sure she doesn’t get stuck with expensive medical bills if she gets sick or has an accident during her trip. She goes online and looks at the coverage offered by three different companies selling travel insurance. She picks the policy that provides the best coverage for the price. When she comes down with strep throat on the third day or her trip, she is able to see a doctor and get antibiotics knowing that her travel insurance will pay 80% of the medical bills.

Have more questions? Contact us for more details on Travel Insurance.

Travel Insurance Tips From First Foundation

If you travel frequently, a multi-trip plan with an annual rate may save you money. If you decide to extend a trip beyond the length covered by the policy, you’ll need to extend your travel insurance policy at additional cost. If you extend your trip because medical conditions make you unable to return home or because of unavoidable travel delays such as a canceled flight, your travel insurance will automatically be extended at no charge.

Make sure to understand any procedures you must follow when using your travel insurance if you want your bills to be covered. You should also be aware of your deductible, the percentage of your bills you’ll be responsible for, the plan’s effective date and termination date, whether pre-existing conditions will be covered, and your maximum out-of-pocket expense. Also, keep in mind that travel insurance is designed to treat only urgent health problems that cannot wait until you get home.

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Last updated Oct 29, 2018