Need help understanding a term in possible policy.

[Rick&Jeannie]

I'm looking at an annual cancellation/interruption policy.  I won't name the company here because it really does not matter for the question I have.

 

One of the coverage terms says:

 

• For trip cost up to $5,000 per person per Annual Policy Term

 

Does this mean that it will only pay out the $5,000 once during the year?

[Babr]

It means the benefit is capped at $5,000 per person per year whether you have several small claims or one large claim.

 

If you filed a claim for a trip that cost $1,500 per person, you’d each still have $3,500 coverage for the rest of the policy period that would cover additional travel.

 

If you took a trip that cost $6,000 per person, the policy would not cover the entire cost; and you would have exhausted the benefit for the rest of the policy period.

[Rick&Jeannie]

That's what I thought!  Most of our trips run well over that amount when we factor in airfare.  Sounds like maybe I need to keep looking for a better policy.  Thanks!

[Jersey42]

If you are looking for a annual travel insurance plans with large cancelation benefits, you may not find what you are looking for.  I know Allianz has annual plans with a maximum benefit of up to $15K per person.  There may be others with higher amounts, but I have not seen them.  

 

There are annual medical and evac plans such as GeoBlue Trekker which offer good medical coverage (especially if you are under 70), but no cancelation coverage.  We typically combine one of these plans with our Chase Sapphire credit card and find this to be a good risk/premium balance.

 

I have also seen a new annual plan from Travel Insured (Crum & Forster) that has a low annual premium for base coverage including things like medical, evac, baggage and baggage delay. You can then add on per trip coverage for things like cancelation and interruption.  Unfortunately the website does not have provide the details on some things that would be important to me such as: primary vs secondary medical, pre existing conditions language/waivers and any specific exclusions for trip cancelation/interruption. Travel Insured is a reputable company but I would want to see a sample policy with the details  and pricing for the per trip addons before considering it.

[pcur]

I was just looking over the benefits detail for the GeoBlue Trekker policy.  If you have no claims filed with them, then you do receive a prorated refund if you cancel:

 

"If no claims have been filed with Us, the unused portion of the premium paid may be refunded as follows: - Only full month premiums will be considered refundable. - The refund will be calculated in a pro-rata basis: refund = total premium paid * (unused months/12)"

Edited December 21, 2021 by pcur

[Jersey42]

I'm not sure if that language was in there in 2020, but we had purchased a policy beginning in early 2020.  No claims were filed. When COVID hit, I wrote to them and said we could not use the remaining months on the policy.  They promptly provided a (pro-rated) refund.

[Hlitner]

23 hours ago, pcur said:

I was just looking over the benefits detail for the GeoBlue Trekker policy.  If you have no claims filed with them, then you do receive a prorated refund if you cancel:

 

"If no claims have been filed with Us, the unused portion of the premium paid may be refunded as follows: - Only full month premiums will be considered refundable. - The refund will be calculated in a pro-rata basis: refund = total premium paid * (unused months/12)"

I am confused by your post.  The GeoBlue Trekker policy is an "annual" travel medical policy that covers all trips (up to 70 days per trip) throughout the policy year.   They were actually quite generous (primarily because of COVID) in granting pro-rated refunds to some folks but it is not the norm with many annual policies.   

 

Hank

[Hlitner]

Just now, Hlitner said:

I am confused by your post.  The GeoBlue Trekker policy is an "annual" travel medical policy that covers all trips (up to 70 days per trip) throughout the policy year.   They were actually quite generous (primarily because of COVID) in granting pro-rated refunds to some folks but it is not the norm with many annual policies.   If you prefer a trip-specific policy (which they call GeoBlue "Voyager" then those terms are different.

 

Hank

 

[Jersey42]

4 hours ago, Hlitner said:

I am confused by your post.  The GeoBlue Trekker policy is an "annual" travel medical policy that covers all trips (up to 70 days per trip) throughout the policy year.   They were actually quite generous (primarily because of COVID) in granting pro-rated refunds to some folks but it is not the norm with many annual policies.   

 

Hank

Hank:

 

As I mentioned earlier, Geo-Blue gave me a pro-rated refund for a policy purchased in early 2020 when I wanted to cancel due to COVID. I only thought about asking for this because of a post I had seen in this forum.  Just because I was curious, I looked at that 2020 policy and there was no cancelation clause.  If you go online to the Geo-Blue website and download a current sample plan description, it now contains the following clause that @pcur mentioned.

 

Cancellation of this Policy

Any date prior to Your Effective date of Coverage, You may request a full refund of premium from Us.

 

Once your Coverage Effective date starts, You may request cancellation of coverage, but the following conditions apply:

• If any claims have been filed with Us, the Premium is considered fully earned and is non-refundable.
• If no claims have been filed with Us, the unused portion of the premium paid may be refunded as follows:

• • Only full month premiums will be considered refundable.
  • The refund will be calculated in a pro-rata basis: refund = total premium paid * (unused months/12)

All cancellations of coverage must be in writing or received telephonically or electronically by Us from the Eligible Participant.

[pcur]

On 12/22/2021 at 9:37 AM, Hlitner said:

I am confused by your post.  The GeoBlue Trekker policy is an "annual" travel medical policy that covers all trips (up to 70 days per trip) throughout the policy year.   They were actually quite generous (primarily because of COVID) in granting pro-rated refunds to some folks but it is not the norm with many annual policies.   

 

Hank

I was posting in reply to the post about not being able to get a refund if you cancelled. Without having filed any claims, you get a prorated refund, depending on how long during the 12 month period you had the policy active.