Should I Get Travel Medical Insurance?

Are you planning to travel internationally this year?  After the pandemic, I have several clients interested in traveling after years of being home-bound.  So, what happens if you break your arm while on vacation in another country? Will your employer-sponsored health insurance or Medicare cover these expenses? Throughout this blog, I will cover the implications of not having travel medical insurance while traveling abroad and how you can manage your risk.

Key Takeaways:

·       What is Travel Medical Insurance?

·       What is Covered by Travel Medical Insurance?

·       Who Should Purchase Travel Medical Insurance?

·       How Much Does It Cost?

·       How Do I Purchase Travel Medical Insurance?

What is Travel Medical Insurance?

Travel medical insurance covers the cost of emergency medical treatments while on vacation.  These policies are typically used when individuals are traveling abroad, as certain health insurance policies will not cover these medical expenses when incurred internationally.  To remedy this issue, individuals can purchase travel medical insurance to help cover these expenses such as a broken limb.  To contrast, routine expenses like going to the dentist for a cleaning are not covered under the travel medical insurance so you should leave those appointments for when you return home. 

What is Covered by Travel Medical Insurance?

There are certain health insurance plans that will cover you for certain accidents while traveling abroad.  However, the coverage differs per policy, so I would recommend you determine what is covered and what is not prior to your trip.  Most health insurance policies are only available in network and within the United States so most people will not be fully covered without Travel Medical Insurance.  Travel Medical is designed to be used as a supplemental coverage for any broken bones, heart attacks, strokes, emergency dental procedures, evacuations, and Emergency transport and repatriation that you may need.   

Who Should Purchase Travel Medical Insurance?

As mentioned above, some health insurance policies will cover certain medical emergencies while traveling abroad.  However, the coverage is limited, so if you are older or prone to injury then I would still suggest purchasing travel medical insurance.  If the emergency that occurs is not covered by your default health insurance, then it could result in large out-of-pocket expenses.  In some cases, these medical expenses could cost more than your trip.  Therefore, I believe that it’s better to spend a little extra money to purchase it and not need it, rather than need it and not have it.  In this case, you would purchase a single-trip plan which is purchased on a per trip basis.

Now what about the people that travel frequently for business or consistently visit family in another country?  If you travel internationally for work, then your employer will likely provide an insurance plan to cover your needs.  However, if they don’t then you would be in the same boat are someone who visits family internationally.  In this case, I would recommend purchasing multiple-trip coverage.  This type of plan will allow you to leave and return home as many times as you want if your trip does not exceed the allowable period.  Purchasing the multi-trip would be more cost effective than purchasing single-trip coverage multiple times, so it could make sense for an avid traveler as well.

How Much Does It Cost?

The cost of travel medical insurance depends on several factors.  The first factors are dependent on you which includes your age, gender, and overall health.  The insurance premiums will be more expensive the older and unhealthier you are, and if you are male.  The reason for this is that females live longer, so there is less risk of death or other health issues while traveling. 

The other factors considered are dependent on the trip itself. This includes the duration of the trip and the location itself.  The longer the trip, the greater the chance of unexpected medical emergencies which causes premiums to increase.  Additionally, if you visit a dangerous country then there may be an additional premium for increased risk of injury. 

That said, it’s usually quite affordable.  A lot of people hear that Travel Medical Insurance will require additional premium and decide to forgo it.  Although, a basic plan may cost less than $5 per day.  Meanwhile, a more comprehensive plan is more expensive, but will better cover you for extended hospital stays and other medical emergencies that can get very expensive.  When making the decision on which plan to go with, determine the risk of the country as well as the activities that you plan to do.  If it’s a more daring trip where you will be sky diving or scuba diving, then it may be wise to pay the additional premium for better coverage.  To understand the difference in price, a comprehensive plan for a month trip could cost a few hundred dollars (~$10 per day).

Imagine you were on vacation in Greece when you broke your arm.  The basic travel medical insurance plan costs $3 per day and the trip was supposed to be two weeks so you would have paid $42.  This would cover all the expenses associated with a broken arm and needing surgery.  However, if you did not have travel insurance, then you could be subject to a bill in the tens of thousands.  Therefore, I would suggest at least getting a basic plan when you travel outside the United States to avoid any unnecessary stress and out-of-pocket payments. 

How Do I Purchase Travel Medical Insurance?

There are several companies that offer Travel Medical Insurance.  Forbes Advisor created an article in May called the Best Travel Insurance Companies of May 2023.  They ranked the coverage from each provider using the same criteria, and then broke it down as best per category.  For example, Forbes Advisor ranked the travel insurance from Travel Insured as the best for non-medical evacuation.  Therefore, each plan has its own pros and cons, and you should determine the risk factors involved in your specific trip before choosing who to purchase from.

I will highlight a few of them based on their ranking.  First, Seven Corners was ranked the best value for Robust coverage.  Therefore, if you need comprehensive coverage then I would recommend getting a quate from Seven Corners.  While travel medical through Generali Global Assistance was ranked great for pre-existing medical condition coverage.  If you have a pre-existing health condition that affects your daily life, then it may be a good idea to get a quote from Generali. 

I hope that you were able to take something away from this blog.  I chose to write this now because more people have been going on vacation compared to the past few years.  If you are traveling out of the country, then I hope you will consider Travel Medical Insurance.  I understand not wanting to pay the additional money, but it could save you thousands if something were to happen.  If you want specific advice for your insurance needs, as well as your investments, then I would recommend reaching out to a financial planner.  You can follow the link to schedule a free consultation where we can determine if your situation matches my expertise. 

If you are interested in reading related blogs, then I would recommend:

“What Connecticut State Employees Should Do With Extra Vacation Days”