Do I really need Travel Insurance?

            Well, most of the time, no.  You only need travel insurance when something unexpected happens… but isn’t that a little too late?  I offer travel protection insurance to my clients and less than 25% of them purchase the coverage.  Most of my clients that elect to invest in the travel insurance are those with some medical problems, seniors, or occasionally younger travelers.  Many of my clients are either driving to their port of departure or are flying in the day before and feel they have plenty of time and nothing is going to happen.  We all think that, until it does, then we wish we had spent the little extra.

            Travel insurance is offered in several ways.  The first is through the trip provider, such as the cruise line or supplier.  The second is through independent insurance companies that list a whole rain of coverages some companies specialize in travel insurance.  Additionally, some major credit cards offer some type of free protection, but it’s very limited.  Also, like the number of companies, the types of coverages cover a wide range of needs.  For example, Carnival’s Travel Protection cost between $69.00 per person to about $179.00 per person.  This will cover you for almost anything from a medical issue to just changing your mind.  With this plan, there is a deductible and for medical coverage, you pay the cost upfront and then Travel Protection will reimburse you.  Something that you should consider is that some medical insurance that is purchased through your employer may not cover you outside the United States.  So on a cruise ship in international waters, you’re outside the United States and may not be covered.  It is best to check with your medical insurance carrier before you go.  Other travel insurance covers the entire trip, not just the cruise or resort, but from the moment you leave your house and sometimes even before you leave.  These coverages vary from the obvious illness or injury and cover job loss, a personal life emergency, natural disasters, and even terrorism.

            The premiums, depending on the company, use various ways of calculation of the cost.  With the cruise lines, there is a set fee depending on the type of stateroom.  Other complanies use a sliding type scale of the total cost of the trip (because that’s what they reimburse) and the age of the individual traveler.  Some have up to a 30 day waiting period before they take effect, some must be paid by the final payment date, and others take effect the day the premium is submitted.  So you see, there is a lot of variables to trip insurance and just like the variables in coverage the premiums are also varied.  All supplies will cover medical expenses from just a simple doctor visit to having to be flown home in an air ambulance.  A doctor visit on a cruise ship can be around $100, but if you have a true medical emergency and have to be airlifted back to the States, it can cost up words to $50,000 for a single incident.  

Shirley and I have been very lucky, we have not had to visit the ships physician on any of our 20+ cruises.  We were close to it once.  We were walking in downtown Nassau where the sidewalk was not in the world’s best shape. Shirley went to step up from the road over the curb and her foot caught a raised area and down she went.  She hit her knees pretty hard.  I was worried we would have to go to see the medical staff on the ship.  (Cruise ships are staffed with at least one doctor and two or three nurses.)  Luckily, we sat in an internet café for some time and she was able to walk back to the ship, but it wasn’t very comfortable.  The point is, if she had fallen any harder, our trip would have become very costly.  Another travel agent friend of mine told me that one of his clients who cruises several times a year never gets trip insurance.  Well, one time cruise they bought travel insurance.  He had a heart attack and had to be airlifted home after a hospital stay.  The total cost of everything was over $100,000.  According to the US Travel Insurance Association in 2014,  “One in six Americans (17%) say their travel plans have been impacted by medical conditions, natural disasters including severe weather; or mechanical or carrier-caused problems”  (http://www.ustia.org/studies--statistics.html).  So, you only have a 17% chance of having a need for travel insurance.  That’s not bad odds.   However, in 2012 it was 12.5%.  So as you see in just two years, there has been an increase in claims filed by travelers.

A few years ago, Courtney and I were in Costa Maya, Mexico, visiting some ancient Mayan pyramids.  She and I went scurrying up one like it was nothing.  However, normally Courtney is not into adventures pursuits, back in the good old United State, she would have stayed on the ground.  See my point.  Then there’s para sailing, I love it… I never do it at home but have twice while cruising.  Once there was a malfunction in the para-sail wench, and I almost was pulled under by my parachute.  Luckily, I wasn’t injured, but it I had been, it would have been a mess.  Shirley may have just left me in Costa Maya!  LOL

Just think about it, if you went on 10 trips and paid $100 for travel insurance each time, which would be $10,000.  But the cost of one medical incident could be far more expensive than the 10 premiums.  It’s a roll of the dice.  Is it worth the extra cost?  That’s something each traveler has to decide for themselves and their family.  One broken arm or toe could be very costly and your family plan may or may not cover any or all of the treatment cost, but for a little extra cost may very well be very valuable in the long run.  For further information, contact your medical insurance carrier.  But Agape Travel highly recommends Travel Protection.

Safe Travels!