Planning a summer getaway? Make sure you’re covered!

by Michael Silver

With summer fast approaching, many Canadians are excitedly planning vacations, from cross-country road trips to international adventures. While travel plans often revolve around booking flights, hotels, and tours, one critical element frequently gets overlooked – travel insurance.

Travel insurance offers essential financial protection, particularly when traveling abroad. Medical emergencies can result in enormous expenses, especially in destinations like the United States, where healthcare costs can escalate rapidly.

For instance, treatment for a serious heart condition requiring surgery, such as coronary artery bypass surgery, can reach up to $448,000 in the United States. Facing such significant expenses without appropriate insurance can be financially devastating.

Many Canadians might already have travel insurance through their workplace benefits. Employer-provided coverage often comes with advantageous terms, particularly regarding pre-existing medical conditions. These policies typically feature a shorter “stability clause” – often as brief as 90 days, or occasionally no stability requirement at all. In contrast, individually purchased travel insurance usually mandates stability periods of about 180 days. This distinction is crucial, as changes in medication or recent treatments might render you ineligible for coverage under individual policies.

It’s essential to carefully review your travel insurance policy’s terms, especially regarding stability clauses, exclusions, and coverage limits. Understanding these details ensures you’re adequately protected and can avoid unexpected medical bills while abroad.

Remember, proper preparation is key to enjoying your summer vacation stress-free. Ensuring your travel insurance adequately covers your needs will help you travel with confidence, ready to enjoy every moment of your getaway.

Trip cancellation insurance – nice to have / Emergency medical coverage – a must

Another component of travel insurance is trip cancellation insurance. This type of coverage reimburses you for prepaid, non-refundable expenses if you need to cancel your trip due to unforeseen events such as illness, job loss, or significant family emergencies. Trip cancellation insurance provides peace of mind, particularly for expensive trips or bookings made far in advance.

However, while trip cancellation insurance is beneficial and comforting, emergency medical travel insurance is indispensable. Medical coverage addresses the potentially catastrophic financial impacts of medical emergencies while traveling abroad. Even if you decide against trip cancellation coverage, never skip emergency medical insurance. It’s not just wise – it’s essential.

Michael Silver, B.Comm. (Hons), CFP®, CHS, is Managing Partner at W.P.G. The Wealth Planning Group