Travel Reference
In-Depth Information
The most important part of travel insurance is medical coverage. If your current health plan doesn't cover
you overseas, travel insurance is a must. It's the only way you will be able to get care on the road without
paying a large hospital bill. Medical evacuations can cost hundreds of thousands of dollars.
I've had to fix my eardrum on the road. My friend Matt broke his leg so badly while hiking in New
Zealand that he was hospitalized for a week. I've known people who needed medicine while traveling when
their prescription ran out. Even though many countries have socialized medicine, doctors still cost money,
and as a foreigner you aren't often able to receive the free or subsidized treatment locals get.
In order to ensure I am covered for any accident and receive the care I need, when I purchase travel in-
surance, I make sure my policy has two important medically related features:
First, make sure they have a high coverage limit on your medical expenses. Most good travel insurance
companies provide up to $100,000 USD in coverage care, though more expensive policies will cover you
for higher amounts. The maximum coverage limits you can find are around $1,000,000 USD. High coverage
limits are important because if you get really sick or injured and need serious attention or long-term treat-
ment, you want to make sure your high hospital bills are covered. The worst thing you can do is go cheap
and get a policy with a $20,000 USD coverage limit, break a leg, and use that limit up in a surgery. Don't be
cheap with your health.
Also make sure your medical coverage includes your hospital stay and will cover any preexisting con-
ditions you might have (travel insurance usually does, but with insurance companies, you never want to
assume anything).
Second, make sure your insurance policy covers emergency evacuation. For example, if you are hiking
out in the woods and break your leg, your travel insurance should cover your evacuation to a hospital. If a
natural disaster happens and you need to be evacuated to somewhere else, your insurance should also cover
you. This protection usually covers an expense of up to $300,000 USD.
Emergency evacuation also means evacuation from the hospital to your home country. Standard emer-
gency evacuation usually includes this provision, but it's important you double-check that your insurance
company will cover the cost of your flight back home if needed.
Beyond covering medical emergencies (which is really the main reason to get insurance), travel insur-
ance offers other benefits. It can cover lost or stolen property, provide other emergency services, and offer
trip cancellation protection. Here are additional criteria to look for when choosing your insurance provider:
Coverage for travel to most countries in the world.
Make sure the insurance provider
covers all the countries you are visiting. Insurance companies will have a list of the coun-
tries excluded from their policy (usually war zones and countries listed by the government
as “not safe”). If you are traveling to those countries, your policy will not cover you while
you are there. Read the list of covered countries.
Twenty-four-hour emergency services and assistance.
After all, you don't want to get
sick and find out you need to “call back during normal business hours” for help.
Coverage for lost, damaged, or stolen possessions.
If your backpack full of clothes gets
stolen or falls off the back of a bus in Brazil, it's important to know that your travel insur-
ance will give you money to buy new supplies so you aren't stuck with just the clothes on
your back.
Cancellation protection.
For things such as hotel bookings as well as flights and other
transportation bookings.
