Buying freestanding medical travel insurance

It was just what we had always looked for: a 2-week stay in a 4-star accommodation — a large, airy room with great en suite facilities; personnel hovering over my wife, Flory, anticipating her every wish and accommodating her every whim; fantastic meals, and the zero charge upon checkout.

This took place in 1991. Since I was somewhat afraid you might want to overnight in this Shangri-la, I waited until now to report it.

Come to think of it, maybe you wouldn’t want to stay there, after all, since this phenomenal facility was the County Hospital in Nelson, New Zealand, where Flory was being treated for a ruptured spleen and five broken ribs and received, in addition to excellent personalized care, five pints of blood.

Since, in New Zealand, a hospitalization resulting from an accident (not from an illness) is free of charge, we did not have to pay.

Of course, since you never know beforehand whether you will be charged, it is prudent to take out emergency medical/dental insurance (EMI).

While nowadays EMI usually is offered as part of trip-cancellation insurance and also may be part of emergency-medical-evacuation coverage (see my article “Emergency Medical Evacuation Coverage — A Review,” Dec. ’03, pg. 85), there may be occasions when you want a separate EMI policy.

An example would be when you take an independent trip (thus, no trip cancellation necessary) and you pay for your airfare with frequent-flyer mileage. As hospitalization overseas can easily set you back thousands of dollars, it would be unwise to travel without having EMI.

A singular advantage of having this coverage is that instead of your having to settle with the providers overseas (often with cash), the insurance company usually will take care of this for you. In addition, it generally will provide helpful advice.

A typical policy will pay for the cost of treatment associated with a medical or dental emergency incurred while traveling or a sickness which first manifests itself during the covered trip.

The insurer will not pay benefits in excess of the reasonable and customary charges commonly made by physicians in the locality in which the care is furnished.

You must receive initial treatment while on the covered trip, and all services, supplies or treatment must be received within 52 weeks following the date of the accidental injury or the onset of the sickness.

If possible, it is best to contact the company before receiving treatment.

Do you need EMI?

Before buying freestanding EMI, check if your present health insurance will cover overseas travel. As you all know, Medicare provides no protection outside the U.S., but some HMOs and Medigap policies do. Some emergency-medical-evacuation (EME) policies also include medical costs.

Companies and policies

A number of Internet sites facilitate comparing the policies of EMI companies.

The most comprehensive website I came across at the time of this writing was Squaremouth.com (800/240-0369), which has an easy interface and which allows the segregation of multiple parameters.

Which firms’ offerings you select will depend on your age and the state in which you live. For the purpose of providing examples, I chose all of the EMI policies listed below on the basis of the following: I compared insurance for two hypothetical 60-year-olds living in the state of New York who wanted neither trip-cancellation nor EME coverage (although it might be included in the policy) and who required a waiver of preexisting conditions. I omitted policies of companies that did not fit my requirements, such as those having inadequate EMI protection below $25,000.

Note that each contract has its own individual quirks and that it is a sine qua non to read the policy’s certificate, which you will find on the website, BEFORE committing yourself. If you don’t have Internet access, have the firm mail or fax the certificate BEFORE giving them your credit card number.

Below you will find the various offerings, sorted by company.

Note: the difference between primary and secondary coverage is that the company which offers primary coverage is the first in line to pay for your expenses, up to the limit of the policy. Over this limit, other firms with whom you may have EMI will pay. Secondary coverage means the firm will pay only after other companies have reimbursed you.

AIG Travel Guard (1145 Clark St., Stevens Point, WI 54481; 800/826-4919, www.travelguard.com).

Cruise Tour & Travel — $50,000 per person, primary coverage.

Protect Assist — $25,000 per person, secondary coverage.

Protect Assist plus Umbrella Package — $50,000 per person, primary coverage.

A waiver of preexisting conditions applies if coverage is purchased within 15 days of the initial trip deposit and you are not disabled at the time you pay your premium.

Elvia (888/489-3227, www.elvia.us).

1. Classic Comprehensive — $25,000 per person, secondary coverage.

2. Deluxe Comprehensive — $50,000 per person, primary coverage.

3. Classic Limited — $25,000 per person, secondary coverage.

4. Deluxe Limited — $50,000 per person, primary coverage.

A waiver of preexisting conditions applies if coverage is purchased within 14 days of the initial trip deposit.

HTH Worldwide (One Radnor Corporate Center, Ste. 100, Radnor, PA 19087; phone 610/254-8700, fax 610/293-3529, www.hthworldwide.com).

1. Trip Protector — $100,000 per person, secondary coverage.

2. Trip Protector Preferred — $250,000 per person, secondary coverage.

This plan covers preexisting medical conditions for all travelers if the plan is purchased prior to or within 24 hours of the final payment for your covered trip.

M.H. Ross Travel Insurance Services (16933 Parthenia St., Ste. 200, Northridge, CA 91343; phone 800/423-3632, fax 888/424-8731, www.tripinsurance.com).

1. Trip Insurance Extra — $50,000 per person, secondary coverage.

2. Trip Insurance Enhanced — $50,000 per person, secondary coverage.

3. Trip Insurance Basic — $25,000 per person, secondary coverage.

Preexisting conditions are waived if the policy is purchased within 15 days of initial trip deposit.

TravelSafe Insurance (40 Commerce Dr., P.O. Box 7050, Wyomissing, PA 19610-6050; phone 800/523-8020, fax 800/303-6015, www.travelsafe.com).

TravelSafe Vacation Insurance — $100,000 per person, secondary coverage.

Preexisting conditions are waived if the policy is purchased within 15 calendar days of the initial trip deposit.

TravelSafe Vacation includes an optional “cancel for any reason” benefit if the insurance is purchased within 15 days of the initial deposit date and offers Hospital of Choice for medical evacuation.

CSA Travel Protection* (Box 939057, San Diego, CA 92193-9057; 800/873-9855, www.csatravelprotection.com).

1. Freestyle — $50,000 per person, with a $50,000 policy maximum regardless of the number of people on the policy, secondary coverage.

The Freestyle Plan now includes an optional “cancel for work reason” benefit and waives the exclusion for preexisting conditions if a policy is purchased prior to the final trip payment. A 20% discount is automatically applied if the policy is purchased within 20 or fewer days of departure (because of a shorter period of trip cancellation coverage).

2. Freestyle Luxe — $250,000 per person, with a $250,000 policy maximum regardless of the number of people on the policy, secondary coverage.

The Freestyle Luxe Plan now includes a “cancel for work” benefit as a covered reason for trip cancellation/interruption. A 20% discount is automatically applied if the policy is purchased within 20 or fewer days of departure. A Return of Premium benefit is included if a policy is purchased prior to the final trip payment (if you cancel the trip, your premium will be returned). An optional “cancel for any reason” benefit is available if the policy is purchased within 24 hours of the initial trip deposit.

Travelex Insurance Services (Box 641070, Omaha, NE 68164-7070; phone 800/228-9792, fax 800/867-9531, www.travelex-insurance.com).

TraveLite — $50,000 per person included or can select up to $150,000 per person, primary coverage.

This plan covers preexisting medical conditions for all travelers if the plan is purchased within 21 days of the initial trip deposit.

Travel Insured International, Inc.® (52-S Oakland Ave., Box 280568, East Hartford, CT 06128-0568; 800/243-3174, www.travel insured.com).

1. WTP Gold Post Depart — $100,000 per person included or can select up to $250,000 per person, primary coverage.

2. WTP Post Departure — $50,000 per person included or can select up to $100,000 per person, primary coverage.

These plans cover preexisting conditions for all travelers if the plan is purchased within 14 days of initial trip deposit.

Conclusion

The many variables (age, state of residence, amount of insurance, etc.) in each offering make it difficult to recommend one of the listed companies over another.

If you have Web access, it is easy to compare companies. If you don’t, call Squaremouth at 800/240-0369.

Good luck in your hunt for the appropriate insurance policy.

[Below is a clarification published Nov. '08, pg. 102 —Editor]

After reading Philip Wagenaar’s article “Buying Freestanding Medical Travel Insurance", specifically the section under the heading “CSA Travel Protection,” an ITN reader received conflicting information from CSA. Philip is traveling, so Contributing Editor Wayne Wirtanen did research and learned the following.

CSA Travel Protection (800/873-9855, www.csatravelprotection.com) does offer the packages called Freestyle and Freestyle Luxe, but they are available only through travel agents who sell CSA products. The Freestyle Luxe does offer an optional “cancel for any reason” benefit, as noted in the article.

Similar CSA policies are available for purchase through websites. These policies are called Web Direct and Web Direct Luxe, but the “cancel for any reason” benefit is not available with the purchase of these policies.