Regarding Travel Insurance

[Stockjock]

Soon, we'll be flying from the USA to Europe to start a 10 night cruise departing from northern Europe.  My concern was, who would pay for hotel/quarantine if we tested positive for covid?  I/we can afford to pay, but do we really want to, or would it make more sense to use the leverage of trip insurance?

Let me start off by saying that I receive no financial benefit from any company, and I am not an expert in this area, so buyer beware and of course do your own homework.

At first, I was getting quotes based upon the cruise price, the flight cost (some portions booked with frequent flyer miles) and hotel costs.

But then, I realized that if I test positive for covid 48 hours before the cruise, I can get a cash refund from MSC and if I test positive day of the cruise, I can get an MSC FCC (that won't happen, as I'll test 2 full days before the cruise).  So I really didn't see the need to insure the cruise portion specifically, because MSC mostly has me covered if I get covid and can't cruise with them.

I lowered the total value of the quote a lot and ended up getting a very inexpensive trip insurance quote.  Not sure that I can name the company that "insure my trip", but the policy I bought was a Travel Insured International Worldwide Trip Protector.  What I liked about that policy was that for a $26 rider (my cost), I could add a inconvenience rider for bed rest.  Basically, a physician would have to certify that I need bedrest or quarantine, but I'm told that's usually a simple certification to get if you have tested positive for covid.  Apparently, they can cover up to $4,000 in related costs (you have to read the certificate), which should cover most of our hotel cost if we're stuck in Copenhagen for a week or more.  For another $30, I added another optional "inconvenience" rider pertaining to flight delays, cancellation, missed port stops and such $250 per occurrence max of $750).  

Let me also add that "the devil is in the details", so don't assume any specific coverages without understand what you are buying.  I made a couple of calls to their agents, as there are a lot of exclusions and such, especially pertaining to covid.  There's a lot to it and obviously I won't pretend to go into all of the details here.  But there are medical evacuation features, delayed baggage payment (only a 3 hour trigger, most are a lot longer), flight delays, death benefits, medical coverage, etc.

Total cost of the insurance is about what we'd pay for a decent dinner for 2, so I think it's worth it.  Let me also add that the policy has a free look period (I think it's 10 or 15 days) where I can cancel the contract for a full refund.  Because trip begins within 10 days, presumably I could cancel the policy for a full refund if we can't go at the last minute.

Just wanted to share some of my due diligence on this.  In the past, I've typically gone without travel insurance, but I figured the cost was low enough to make purchase worthwhile

Edited August 30, 2022 by Stockjock

[eagletwo]

You need a good TA to help you.  

[Stockjock]

16 minutes ago, eagletwo said:

You need a good TA to help you.  

Sometimes I use one, other times I don't.  I often don't when dealing with MSC, as I wouldn't wish dealing with them on my worst enemy!  

But when it comes to trip insurance, I would expect the insurance agent to be more well-versed than a travel agent.  Probably more options too w/the insurance agent.  I think my initial quote had at least 20-25 options, which were whittled down after talking to the insurance agent.

Edited August 30, 2022 by Stockjock

[Hlitner]

Brilliant!  I like the way you think (am talking about the OP).  Using your own "risk tolerance" and analysis gets you to a place of comfort.  Something we have preached (to mostly an empty room) for many years.  Hope you have a wonderful trip/cruise.

 

Hank

[Stockjock]

Just to elaborate on a point that I made in the original post.

If you buy travel insurance and want cancel for any reason coverage, obviously it will be a lot more expensive, but importantly, it must be purchased very close to your original payment.  While I didn't buy that, for me, my first payment was around March 2021, so if I had wanted that coverage, I would have basically needed to buy it at that time very close to March 2021.

But, if you don't need that type of insurance, to me, it makes sense to wait until the final few days to buy the travel insurance.  Most or all of these contracts have a review or free look provision that typically lasts from 10-14 days (check the terms on the policy you are considering).

In my case, I bought the insurance 9 days before my trip begins.  It has a 14 day free look period where I could cancel without penalty.  But let's say I'd bought it 2 months ago (or whenever).  The policy would now be non-refundable and even if there was a change in plans, I would not be able to cancel for a refund.

Edited August 30, 2022 by Stockjock

[Hlitner]

1 hour ago, Stockjock said:

Just to elaborate on a point that I made in the original post.

If you buy travel insurance and want cancel for any reason coverage, obviously it will be a lot more expensive, but importantly, it must be purchased very close to your original payment.  While I didn't buy that, for me, my first payment was around March 2021, so if I had wanted that coverage, I would have basically needed to buy it at that time very close to March 2021.

But, if you don't need that type of insurance, to me, it makes sense to wait until the final few days to buy the travel insurance.  Most or all of these contracts have a review or free look provision that typically lasts from 10-14 days (check the terms on the policy you are considering).

In my case, I bought the insurance 9 days before my trip begins.  It has a 14 day free look period where I could cancel without penalty.  But let's say I'd bought it 2 months ago (or whenever).  The policy would now be non-refundable and even if there was a change in plans, I would not be able to cancel for a refund.

There is another issue (important to many) about the timing of buying insurance.  Many policies will cover "pre existing" medical conditions if the policy is purchased within a specified time of doing your booking.  If you wait, then any pre-existing conditions will fall under provisions generally known as a "look back period."  Bottom line is that if you have any medical conditions (which can as basic as high blood pressure) it may be wise to purchase travel/medical insurance shortly after you book.

 

Hank

[Sixtytwo]

Not an insurance pro, barely an amateur, but one thing we did on our last TA was to purchase med evac coverage. If it is required at sea, it is EXPENSIVE based on a few posts found somewhere. Hank, I know you likely have some experience in this area, what are your thoughts on the medical evacuation coverage?

[Hlitner]

24 minutes ago, Sixtytwo said:

Not an insurance pro, barely an amateur, but one thing we did on our last TA was to purchase med evac coverage. If it is required at sea, it is EXPENSIVE based on a few posts found somewhere. Hank, I know you likely have some experience in this area, what are your thoughts on the medical evacuation coverage?

To quote a well known credit card company, "Don't leave home without it."  We have $500,000 of evac as part of our annual Geoblue policy and even more with one of our credit cards.  We one had to use that benefit when DW needed to be medically evacuated from Japan back to the USA.  We were able to do that with a last minute commercial business class seat, but even that cost the insurance company $10,000.

 

We have an upcoming cruise to Antarctica and, just this week, received an e-mail from the cruise line advising that we should have "at a minimum" $50,000 of evacuation insurance.  The truth is that evac insurance is pretty reasonable when it is included as part of travel or travel med policy.  One could also consider one of the specific evac policies such as that offered by Medjetassist.

 

Hank

[Stockjock]

2 hours ago, Sixtytwo said:

Not an insurance pro, barely an amateur, but one thing we did on our last TA was to purchase med evac coverage. If it is required at sea, it is EXPENSIVE based on a few posts found somewhere. Hank, I know you likely have some experience in this area, what are your thoughts on the medical evacuation coverage?

I believe the policy I have covers $500,000 and my American Express Platinum card covers up to $1,000,000.  Between those 2, and my actual medical plan, hopefully I'm covered if something goes very wrong medically.

[Hlitner]

Just a warning about medical plans.  Some give decent coverage around the world while many do not!  If in doubt call your own plan, ask the questions, and ask for where you find the answers in writing!  But be forewarned.  Most Americans are used to having insurance that accepts "assignment" which means the insurance plan directly pays for your care (less any deductable and copays).  But with most international coverage you will be responsible for covering the entire bill (even if it is 10s or 100s of thousands of dollars) out of pocket and later seeking reimbursement from your insurance.   In most foreign lands, when you leave a hospital or physician they expect to be paid at that time!  You ideally have the credit limits that can handle the bill.  It can take months to get reimbursed, and that assumes you can figure out how to file a claim and have all the required "back up" documents to support your claim.    That is reality!

 

I still remember when DW was treated (outpatient surgery) at a major teaching hospital in Osaka, Japan.  When we were finally allowed to take her from the hospital (back to the ship) the last stop was in accounting where we had to settle the entire bill (thousands of dollars) on the spot!  Fortunately we had major credit cards that could handle the bill!  It took about 2 months for me to get reimbursed, and I had over thirty years of experience in the medical insurance industry so had some clue how to get through the complicated process.   

 

Hank