Whether it’s your annual sojourn to the sunny south, a bucket-list trip to Europe with kids and grandkids or a cheeky weekend escape to New York to catch a show, the perfect getaway should be as enjoyable, affordable and angst-free as possible.

Unfortunately, there’s often a catch: In order to reduce the stress from your out-of-country excursion, you’ll want to travel with an emergency medical insurance plan, which, like everything else these days, is getting more expensive.

“Global health-care costs are soaring,” says Kellee Irwin, vice-president of Orion Travel Insurance, a CAA company. Paul Savage, head of individual insurance at Manulife Canada, concurs: “The cost of medical insurance is highly correlated with the cost of that medical treatment, among other things.”

The costs are indeed staggering – an uninsured trip to the ER in the U.S. might result in a bill for up to US$20,000; a blood test or an X-ray could set you back US$3,000; and surgery, like an appendectomy, more than US$82,000, says Maryland-based International Citizens insurance website. People who don’t have emergency medical insurance must pay for it out of their own pockets, sometimes forced to mortgage their homes or deplete their retirement savings. 

Irwin, who recently broke her foot while on a recent motorcycle tour of Iceland, was grateful she had coverage. “Life happens, even when you’re travelling,” she laughs. She called CAA Assistance, which helped her find a hospital (she wasn’t near a big city), get back to her tour and covered all the bills. 

While you probably won’t be roaring around on a motorbike on your next trip, accidents and illnesses can occur anytime and anywhere. “Experiencing an illness or injury when you’re travelling is stressful enough without having to be concerned about the cost of unexpected medical care,” says Savage.

First-time insurance buyers sometimes find it a bewildering process. Almost every bank and financial institution offers competing policies, all of which have different names, use perplexing jargon and offer confusing pricing and coverage options. 

You should first check your credit card to see if it offers medical travel insurance. Irwin cautions that you check the fine print because many of these policies will end coverage when you turn 65, offer lower coverage limits, shorter coverage periods or put a limit on the number of trips they’ll cover per year. 

“Medical insurance is a complex product,” agrees Irwin. Her advice: “When you call for a quote, you need to ask a lot of questions.” In order to get the right coverage, notes Savage, “you should be transparent about yourself, your medical history and what you’re doing on your trip.” 

Price Check

Prices for travel policies vary dramatically, depending on your age, health, where you live and where you’re going. To get a sense of policy prices for different individuals, I created two fictitious travelers: John Smith, a 63-year-old male non-smoker from B.C. who is planning a three-week trip to California and Mary Jones, a 73-year-old female non-smoker from Ontario who takes medication for recently diagnosed rheumatoid arthritis and is going on a three-week tour of Europe in late spring. CAA estinated John’s medical-only policy would be anywhere from $150 to $250. Manulife estimated that Mary, because of her age and health condition, would likely pay about $245 for her coverage.

Full Coverage

Medical plans provide coverage for emergency health-related costs, prescription medication, hospitalization and other medical services and link you to the right health-care professional. If an accident or health event does occur, both CAA and Manulife policies offer virtual care – a telephone or video chat with a health professional – and, if possible, will arrange a house call from a local doctor.

Health Check

Insurance companies will ask your age, the length of your trip and, most importantly, your health. If you’re over 60, you’ll have to
fill out an online questionnaire about your medical history and medication and stating whether you suffer from certain conditions like cancer, diabetes, heart disease, high blood pressure, respiratory or neurological disease. 

If you have one of these “pre-existing conditions” – an illness or injury diagnosed or treated prior to your trip – it almost always means a pricier policy. Irwin says that some people incorrectly assume that having a pre-existing condition will disqualify them or price them out of coverage. Instead, insurance companies might ask for a “stability period” – where you show that your condition has been stable for a period of time, usually three to six months before you leave. 

Behaviour Clause

Most companies will forfeit coverage if, while travelling, you incur an injury or sickness that results from drug or alcohol abuse. A travel advisory issued by Foreign Affairs before you depart may forfeit coverage. Savage advises you should inform the insurance company “if you will be engaging in activities like scuba diving or parasailing, to make sure these are covered in your policy.” 

Cut the Costs

If you’re travelling more than once a year, you can save by buying one plan to cover all your trips. Both Irwin and Savage suggest that you can lower the price of your policy by increasing your deductible, the amount you pay if you make a claim. For instance, if you agree to a $750 deductible on a CAA policy, you can lower your price from $250 to around $212. Also, insurance companies usually bump up prices when you turn 60, 65 or 70, etc. – you’ll get a better price if you buy before you hit these age thresholds. As well, memberships in certain organizations (like CAA or CARP, both partners of ZoomerMedia) can also reduce your costs.

Cheaper Isn’t Always Better

Sometimes a friend will tell you that his or her policy has cheaper premiums than yours. Before signing up for the bargain deal, Irwin advises to “watch out that they’re not offering different levels of coverage or asking for longer stability periods.” Savage warns that you should “not just look to save a few dollars up front, but make sure that it’s the right coverage for you.” Both stress that you read the policy closely before purchasing. Unfortunately, many people don’t read the fine print  – until they try to make a claim and realize, much to their chagrin, that there’s something for which you haven’t accounted. 

 

(A version of this story was published in the April-May 2024 issue of Zoomer magazine.)

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