What to consider when buying travel insurance
Planning a trip? Getting travel insurance should be part of your plans.
Whether it’s a sunny beach in the Caribbean or a day of cross-border shopping the risks are the same. Should you become ill or involved in an accident, your Canadian health insurance is not valid outside Canada.
Your provincial health insurance may cover a small portion of the cost. For example, in Ontario when you travel outside of Canada, OHIP will pay for insured, emergency health services that meet specific criteria. OHIP pays a set amount for these services.
There are many health services that are not covered by OHIP when you are outside of Ontario. For example, OHIP does not pay when:
- Use an ambulance
- Getting medical services that you can plan for and get in Ontario
Generally, you have to pay for the services upfront and OHIP will reimburse you, if eligible.
Why should I purchase travel insurance?
Travel insurance costs in 2024 varied depending on the trip’s cost, destination, length, and coverage level. It generally accounted for 4–12 per cent of the total trip expense. That’s a small amount when you consider what out-of-county medical treatment can cost.
A Tecumseh, Ont., man recently found out. He suffered cardiac arrest in an Orlando, Fla. airport and ended up with a hospital bill of more than $620,000. His insurer initially denied the claim because of a pre-existing condition. The decision was appealed and the insurer settled the hospital bill for a reduced amount of almost $365,000. Had he been uninsured, even the lesser amount would have left him with years of debt.
The Government of Canada will not pay your medical bills.
How much coverage do I need?
Your travel insurance should include health, life and disability coverage that will protect you from incurring large expenses, such as the cost of hospitalization and medical treatment outside the country. Ensure your coverage includes:
- Pre-existing medical conditions: Understand the definitions of, and limitations and restrictions due to pre-existing conditions and tests and treatments you may have undergone. You must disclose all such conditions, treatment and drug history. Get a written agreement that your policy covers your pre-existing medical condition. It should also include a stability clause that says you are to be covered for any pre-existing conditions for a specific period.
- Medical evacuation: It should cover medical evacuation to Canada or to the nearest location with appropriate medical care. Costs of a medical escort to accompany you to your final destination should also be included.
- Repatriation in case of death: There should be coverage for the preparation and return of your remains to Canada.
It’s critical you verify and understand your insurance policy. Read the fine print. Consider this real-life case (name changed for privacy):
Maria travelled to the Dominican Republic for a one-week getaway with her sisters when she was 34 weeks pregnant. A few days into the trip, she went into early labour and was transferred to the nearest hospital where she had an emergency caesarean and was then medically repatriated to Canada. The insurer would not pay any of the medical or transfer costs, leaving Maria with a $75,000 bill. Maria didn’t review her policy and coverage before leaving. Most policies don’t automatically cover pregnancy-related conditions.
Four golden rules
Travel insurance is at its core health insurance. In addition, there are more comprehensive policies that include coverage for trip cancellation and more.
The Travel Health Insurance Association of Canada (THIA) recommends these four “golden rules:”
- Know Your Health: Do you have any pre-existing conditions? Has anything in your health status or health care routine changed in the last six months (e.g. start or stop medications)? Make the insurer aware of everything as it can affect your coverage. Failure to do so can result in a claim being denied.
- Know Your Trip: Are you travelling alone? For business or pleasure? With others who need coverage? Will you be taking part in risky activities such as bungee jumping or scuba diving? All of these can influence the coverage you need.
- Know Your Policy: Read the details and ask questions of your provider. Will it cover you for what you need? What are its benefits and limitations? Deductibles?
- Know Your Rights (and Responsibilities): You have rights as a travel health insurance consumer. Learn more in THIA's short Bill of Rights and Responsibilities video so that you understand what to expect and what do when buying or making a claim.
Where to get coverage
When searching for travel insurance, 24/7 toll free support, a free, minimum of 10-day policy review and prompt and fair claims handling are important. Most insurers offer single or multi-trip plans.
HUB SmartCoverage offers travel insurance through Xodus Travel Services. Emergency medical for travelling Canadians features a $10 million CDN policy limit for emergency expenses. There are also packages for visitors to Canada. Clients can contact Xodus by phone, email, web chat, text, iMessage and WhatsApp.
Their all-inclusive plans provide coverage for key non-medical expenses: trip cancellation, interruption or delay, missed connections plus lost documents, lost, damaged or delayed baggage, and more. It offers even greater protection in today’s travel environment.
With files from Government of Canada, CTV News
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