4 tips when purchasing travel insurance

March break is in full swing and many Canadians are hitting the slopes or working on their tans. However, some are also taking risks because they didn’t purchase travel insurance.

In fact, only 41% regularly buy travel insurance, finds a BMO study. Further, 40% have travelled with someone who required medical assistance.

Read: Ensure clients have adequate travel insurance

And paying out-of-pocket if there’s a medical emergency can be costly. According to the U.S. Government’s Agency for Healthcare Research and Quality, the average cost per hospital stay in the U.S. for adults aged 45 to 84 was over $12,000 in 2010.

“Checking to see whether you have the right travel medical insurance should be one of the first things you cross off your list before you pack,” says Julie Barker-Merz, vice president and COO, BMO Insurance. “Whether it’s a broken leg or the stomach flu, health issues can arise while on holiday. Canadians should secure themselves with the right kind of insurance.”

Read: Little-known facts about travel insurance

Here’s what to consider when selecting a travel insurance policy.

1. Get enough coverage: Basic travel insurance will cover things like lost luggage, trip cancellation and missed connections, but may not include medical coverage. Look for a policy that includes medical and dental coverage, air ambulance, private duty nurse expenses, trip interruption and airfare/lodging for a family member to be by your side.

Read: Prepare clients for the worst before travel 2. Make it cost-effective: “Pay-as-you-go” medical travel insurance can be purchased before each trip. However, those who are out-of-province or out of Canada more than once during a 12-month period should consider a policy with an annual premium.

3. Understand who pays: Some insurers pay the doctor directly while others require the traveler to pay up front and then get reimbursed at a later date.

4. Read the fine print: Make sure your policy covers you for all your trip activities and is valid for the duration of the trip. Clarify any issues with the insurer before leaving home. Keep a copy of the policy for your records and the contact information of your insurance company.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.