Why Travel Insurance - Benefits, Tips, Questions & More
Financial Planning
Summer Travel: How to Protect Your Adventures with Travel Insurance
Category: Financial Planning Tags: Insurance, travel claims, travel insurance, Travel Planning, Travel Tips, vacation planning

Why Travel Insurance Matters

When planning a vacation, many people think about the destination, accommodations, and activities, but often overlook travel insurance. Ensuring you have adequate travel insurance is crucial, especially when traveling out of the country. Here’s why it’s important and what you
need to know.

Common Benefits of Travel Insurance

Many employer or retiree plans and credit cards offer some amount of out-of-country insurance, but coverage can vary. It's essential to verify the details of your plan, as some may only cover short trips. Here are common benefits you should expect from a comprehensive travel
insurance policy:

Emergency Medical Care: Coverage typically ranges from $1 million to $5 million for emergency medical expenses.
Direct Payments: Insurers often make direct payments to hospitals and healthcare providers abroad.
Air Ambulance: Coverage for medical evacuation to a hospital in your home province if necessary.
Vehicle Return: Costs covered to return your vehicle to Canada if you are unable to do so.
Family Member Travel: Expenses for a close family member to be at your bedside if you are hospitalized.
Accommodation and Meals: Coverage for accommodation and meal expenses during a medical emergency.
Trip Cancellation/Interruption: Reimbursement for trip cancellation or interruption, as well as lost baggage and flight delays.

Key Questions to Ask About Your Plan

To avoid unpleasant surprises during a claim, ask these critical questions:
1. Exclusions: What is not covered by the plan? Are there specific exclusions for sports or other activities?
2. Pre-Existing Conditions: Does the plan cover emergencies arising from pre-existing conditions?
3. Medications: How do regularly taken prescribed medications affect your coverage?
4. Assistance Centre: Will you be covered if you don't contact the insurer’s Assistance Centre before receiving treatment?

The Value of Private Travel Insurance

If you find gaps in your existing coverage, purchasing private travel insurance might be a good decision. Private plans can offer more comprehensive coverage, ensuring you are protected for any travel-related claims. Working with an advisor can help you understand your coverage and risks better.

Essential Travel Tips
• Insurance Documentation: Always carry your travel insurance card, policy number, and emergency assistance contact numbers.
• Passport Validity: Ensure your passport is valid for at least six months beyond your travel dates. Also, check visa requirements and carry travelers cheques and banking cards.
• Pre-Trip Medical Care: Visit your physician and dentist, refill prescriptions, and get any necessary vaccinations.
• Medical Kit: Pack a medical kit with both regular use and emergency use items.

Costs and Coverage Updates

Although insurance cost will vary, depending on the insurance provider as well as the traveler’s age and health, as a rule of thumb you can estimate the cost to be approximately 7% of the cost of the trip. In dollars, the average cost of travel insurance for a two-week trip can range from $100 to $300 for basic coverage. Comprehensive plans with extensive coverage, including higher medical limits and additional benefits, would cost more. Given the rising costs of healthcare globally, investing in a robust travel insurance plan is more important than ever.


Don’t let the unexpected situation turn your dream vacation into a nightmare. Adequate travel insurance can provide peace of mind, knowing that you are protected against unforeseen medical emergencies and other travel-related issues. Pack your bags with confidence and enjoy your journey!

Bon Voyage!

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