Coverage, benefits and, protection are words we hear often and they can even be thrown around haphazardly. Sometimes it’s not always understood what’s included. All coverage is not created equal, and what is covered with one company, may be lost in the fine print with another.
In our last post, we discussed if travel insurance was right for your business, the benefits of travel insurance, and what type of plan may be best for your niche base and customers.
In part two of our Travel Insurance 101 series, we’re going to talk more about covered reasons and what travel insurance can and can’t cover.
Existing Medical Conditions
You’re in the process of putting together a three-day tour of Cozumel when your client starts to talk about their lung condition. “Existing medical conditions” for travel insurance is defined a bit differently than how traditional medical insurance may define it. Typically, for travel insurance, a pre-existing condition is something your traveler has had anywhere from 60-120 days.
To determine if your client may have a pre-existing condition, ask them if they are taking medicine for a reoccurring condition, have been to a doctor in the last six months, or have been prescribed new medicine.
If they answered yes to one or more of these questions, they may have an existing medical condition, and we recommend referring them to the insurance provider for more assistance in understanding what travel benefits could be available to them.
One great thing about working with Allianz Global Assistance is that we are one of the few travel insurance companies who will offer benefits for pre-existing conditions if your traveler meets the following requirements:
- Purchased policy within 14 days (depending on the plan) of initial trip deposit
- Medically able to travel at time of purchase
- Full non-refundable trip cost insured
- S resident
- $50k maximum trip cost per person
However, certain existing medical conditions are excluded from Allianz Global Assistance’s travel insurance coverage, such as mental and nervous health conditions, bipolar disorder, and Alzheimer’s disease.
Trip Cancellation and Interruption Defined
Trip Cancellation Protection: This is the big one, and can include reimbursement for pre-paid, non-refundable trip payments, and deposits for covered reasons.
Trip Interruption Protection: Sometimes trips start on time and end prematurely due to forces of nature and other circumstances beyond our control. If your trip is interrupted for a covered reason, this benefit can provide reimbursement for unused, pre-paid costs and transportation costs to return home.
- Disruption before a trip that prevented trip departure falls under trip cancellation.
For example, your client purchased insurance and right before leaving was injured in an accident making him unable to embark. His trip cancellation benefits could handle any non-refundable payments and deposits.
- Interruption during or after departure falls under trip coverage.
Let’s say your client purchased travel insurance for her cruise to Cuba. Once she arrives on shore she receives news that an immediate family member has fallen ill. Immediately she makes plans to go home. Trip interruption could cover any pre-paid expenses, transportation home, and/or transportation to resume the remainder of her trip.
Existing medical conditions, trip delay, and trip cancellations are great benefits for your customers but there are many other specific events that may be covered by an insurance policy. From being called on for jury duty, to their son breaking his leg outside, travel insurance benefits could assist them in a range of incidences.
Keeping in mind that all policies are different, we always recommend that your customer read their policy or Certificate of Insurance for more information before they jet off.
- Attending Immediate Family Members Birth*
- Death of Family Member
- Death of Insured
- Death of Traveling Companion
- Covered Illness of Family Member
- Covered Illness of Insured
- Covered Illness of Traveling Companion
- Covered Injury of Family Member
- Covered Injury of Insured
- Covered Injury of Traveling Companion
- Normal Pregnancy
Transportation & accommodation
- Covered Travel Delay – loss of 50%
- Financial Default
- Involved in a Traffic Accident
- Loss of Accommodations Abroad
- Legal Separation or Divorce
- Jury Duty/Subpoena
- Complete Cessation of Services
- Destination Uninhabitable
- Home Uninhabitable
Politics & violence
- Foreign and Domestic Terrorism
- Felonious Assault
- Required to Work*
- Company Merger or Acquisition**
- Company Unsuitable for Business**
- Employer Termination
- Military Obligations
*Trip Cancellation only.
**Only available with Required to Work optional add-on.
Bold-faced type means first and/or only in the industry.