A business commentator recently pointed out that Canadians have cut back on spending but are still travelling.
But travellers have cut back on buying travel insurance.
A recent survey by TD Bank found only one-third of travellers plan to buy emergency travel insurance and cancellation insurance.
Forty per cent did not feel they could afford travel insurance.
That reduction in travel insurance brings to mind the old proverb: Penny wise and pound foolish: translating into small savings may well cost much more later.
Unless people are living under a rock they have all heard of the horror stories by some travellers who did not have travel insurance, or believed they were covered.
Running up a $100,000 health care tab from a heart attack, stroke or other serious ailment is easily done in the U.S.A. That kind of unexpected bill can financially ruin a couple.
Just being flown home by air while sick can equal the cost of a medium-sized car.
Terms and conditions of various travel insurance policies vary.
One of the more serious involves loss of benefits if a prescription – any prescription – was changed in the six months before the trip. Or denial for a pre-trip medical condition that gets worse while away.
A number of years ago a friend travelling in the U.S.A. fell and required stitches. Cost was $800 plus US dollars.
Sask. Health only covered a small portion.
The older one gets, the more insurance may be needed and the more it costs.
And the rates are up in the stratosphere.
Looking at rates by one of the highly-touted companies, endorsed by several large organizations, fees show the age difference is notable.
The standard policy rates for a healthy person for a one to three day visit, $1,000 US deductible; for ages 56-60 is $99.
For someone aged 80-85 that rate is $358.
The company offers a discount of up to 20 per cent putting the rate at $286.40. Add GST and PST and the rate is $317.9 —or $206 per day for a three day trip.
For a 21-24 day trip the 56-60 aged person would pay $297, with $2,493 for 80-85 years
That seems an outrageous fee. Without travel insurance the financial risks are immense.
Someone aged in their mid-80s found a travel insurance rate of $58 for 15 days.
Be sure you know exactly what coverage you have and the terms and conditions in the policy that must be followed to avoid denial of benefits.
Canadians took 21.5 million visits to the U.S.A. in 2018. The travel insurance business must be lucrative.
Ron Walter can be reached at [email protected]
