Like with any insurance, it’s important to understand your travel insurance policy. The OmbudService for Life and Health insurance has a helpful guide to travel insurance.
This guide to travel insurance will help you understand what coverage you need so you can have peace of mind on your next travel adventure.
Types of Travel Insurance
At a high level, there are four key types of travel insurance to choose from:
Per Trip
This type of travel insurance applies to a single trip.
Annual
This type of travel insurance is better suited for travelers who spend extended amounts of time outside of Canada, for example “Snowbirds” who travel to Florida for months at a time.
Bank Card
Credit Cards can also offer travel insurance coverage for medical emergencies or trip cancellations and material losses like baggage, or liability insurance when you rent a car on vacation.
Group Benefits
Your extended health care benefits (aka group benefits through your employer) may grant you access to travel coverage.
How to choose which travel insurance to buy
When selecting the correct type of travel insurance, get qualified advice from a professional on what kind of coverage to buy. Don’t be shy to ask your insurance provider as many questions as you need to feel comfortable and confident about your policy. A travel insurance checklist is available on the OLHI website and provides you with important questions to ask when selecting an insurance policy that meets your needs.
How to ensure you have adequate coverage
Making sure you have enough coverage for emergency medical care expenses is essential when selecting travel insurance. Your base coverage should include emergency medical care expenses for you and your family. The amount of coverage you need will depend on your situation, but you can generally expect a coverage range from $3M to $5M CAD. Make sure to clarify if there is a deductible (this is the amount you would pay as part of a claim against the policy) and what the deductible amount is and in what instances it would apply.
You should also find out if the limit or aggregate maximum payable for everyone covered by your insurance policy. The maximum payable is vital if an emergency like a natural disaster, pandemic or military conflict occurs during your trip.
Four key things your travel insurance should always cover
Medical Evacuation
Your policy needs to cover the cost of your medical evacuation to Canada (or the closest location you can get to adequate medical care). These costs should include a medical escort accompanying you during your evacuation.
Pre-existing medical conditions
Many policies have a pre-existing condition clause. This means that if you suffer from a pre-existing condition, any claim related to it will be excluded from the coverage of your policy. Ask for the insurer’s specific definition of “pre-existing medical condition” and any limitations this definition may impose on you based on your medical history. Ask for a written agreement from your insurance company that states what they will cover. Ensure that written agreement contains the following:
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- Stability Clause which states the duration of coverage for pre-existing medical conditions before your trip, also known as a stability period. Your medical condition cannot change during this period (including medication and symptoms). In other words, this clause confirms coverage for a pre-existing condition because it has remained stable over a defined duration.
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- A compassion clause which states that an inaccurate statement from you may not invalidate your entire policy.
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- A change of health clause covers you if your medication condition changes before your trip.
Repatriation
In the event of death, ask your insurance company if the travel insurance policy covers repatriation. It’s certainly not something anyone wants to consider but if you pass away while abroad repatriating, your remains back to Canada may be difficult and expensive.
Your travel timeframe
You should be clear about when you’ll be travelling and if outside of Canada. Ask if there is a maximum timeframe for coverage. Find out if you can renew or extend your insurance coverage and how much notice your insurer needs to extend it.
Trip Cancellations
Cancellation rules depend on your insurer and your policy. You’ll need to ask questions about the conditions that allow trip cancellation, clarify what conditions your insurer will reimburse you for, and how much coverage you have purchased.
Travel Exclusions to ask about
Medical
It is crucial that you disclose your full medical history in your application to your insurance provider. Don’t leave anything out. The primary reason insurers deny travel insurance claims is the insurer’s discovery of a pre-existing condition when there is indeed a pre-existing exclusion in the policy. If an insurer discovers missing medical details from your application, this can be considered as misrepresentation or concealment. The insurer can determine that this information was “material to the risk”.
Who you are travelling with
Ask specific questions about who in your travel party falls under your coverage plan. Suppose you’re travelling with your significant other, but you don’t live together, in that case they are likely not covered under your travel insurance plan.
High-risk activities
Are you engaging in any high-risk activities, like parasailing or deep-sea diving? If you intend to participate in anything where injury or fatality could occur, ask your insurance company if they include accidents resulting from these activities under your insurance coverage.
Your destination
Suppose you’re travelling to a destination where the Canadian government has issued an advisory against travelling there. In that case, your insurer may not be able to provide you with travel insurance coverage. Tell your insurer where you plan on travelling, especially if you’re making multiple stops in different countries. Ask if coverage conditions will change in a situation where the advisory status worsens after purchasing your travel insurance. Check the Canadian Governments Travel Advice and Advisories website after you plan your trip and again shortly before you leave. Be prepared for a travel insurance denial if you plan on travelling to any countries indicated as “Avoid all travel” by the Canadian government. If you are travelling to a contentious location, ask your insurer about the limit or aggregate maximum payable for all those in your travel party covered by your insurance policy.
If your insurer has denied your travel insurance claim and you’ve unsuccessfully appealed the claim through their internal complaints process, you can submit a complaint to us for an additional review here.
Photo: Eva Darron