Do I need Travel Health Insurance?

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Going on a trip can be financially taxing. Some individuals may hesitate to add extra expenses to their already costly vacation. Nevertheless, depending on your circumstances, investing in travel health insurance could prove to be a wise decision.

Purchasing travel health insurance is advisable when traveling to foreign countries where your normal health insurance does not provide coverage, when there is a likelihood of natural disasters, or when staying in remote areas where medical care is located far away.

When you’re on vacation, having travel health insurance can be a real lifesaver (or money-saver). This guide will assist you in determining whether or not you require this type of insurance.

Reasons Why You May Need Travel Health Insurance

Your standard insurance plan does not cover medical care in a foreign country

It is important to note that certain medical insurance plans offer coverage for medical care received in foreign countries. However, it is not guaranteed that yours will, and seeking treatment in a country that is not covered could result in a hefty out-of-pocket medical bill. This may be especially true if transportation by ambulance or helicopter is required. It is also worth mentioning that senior travelers who rely on Medicaid should be aware that the program typically does not cover any health expenses outside of the U.S. with rare exceptions.

While certain American health insurance companies offer partial coverage in foreign countries, it can be advantageous to acquire travel health insurance as a backup plan. This way, in the event of an emergency, you can minimize out-of-pocket expenses and have an additional form of insurance coverage. Many health insurance plans reimburse you based on their out-of-network rates for medical expenses incurred outside of the United States, increasing the amount you would have to pay in the form of copay or deductibles.

Also, note that countries that have nationalized health care may only cover non-citizens partially or not at all. Thus, traveling to one of these countries is not a guarantee that you won’t need travel health insurance.

Certain countries may require it

The majority of countries do not require proof of insurance in order to visit for a short period of time. More recently, some countries have begun requiring travelers to have insurance in order to cover the cost of Covid-19 treatment. Some countries that require travel medical insurance (or standard health insurance) for one reason or another include (but are not limited to):

• Seychelles
• Saudi Arabia
• Panama
• Laos
• Oman
• Nepal
• Iran
• Fiji
• Indonesia
• Chile
• Bermuda
• Jamaica
• Israel
• Argentina
• Belize
• Sint Maarten
• Sri Lanka
• Turkey
• Ukraine
• Vietnam
• Thailand
• Singapore
• Russia
• Rwanda

It’s important to note that insurance requirements may differ depending on the country you’re visiting. Some countries require a minimum coverage amount, while others only require that your travel insurance lasts for the duration of your trip. In some cases, you may need to purchase a specific plan from the government to cover medical costs during your travels. It’s crucial to plan ahead and check the entry requirements on the official websites (or any other official means of communication with said country) of foreign governments to avoid any issues at customs.

You are traveling somewhere for an extended length of time (6+ months)

When embarking on a long trip, it’s likely that you may require medical attention at some point. Additionally, several foreign countries mandate proof of health insurance that covers medical expenses incurred within their borders before issuing a visa, even a travel visa.

You have preexisting conditions

Certain health conditions increase the likelihood of a medical emergency occurring while you are traveling. By traveling without adequate health insurance with a pre-existing condition, one is then increasing the chance they will have to pay out-of-pocket costs for what may end up being quite intensive medical care.

Of course, getting coverage with preexisting conditions can be difficult. Some travel health insurance plans offer pre-existing condition waivers, which prevent the insurance company from taking into consideration your pre-existing conditions when they determine whether or not to accept a claim.

Without a pre-existing condition waiver, insurance companies can look back at your medical records as many as 60-180 days prior to your purchase of their plan, and use any pre-existing conditions as an opportunity to avoid paying for your care. This can occur with any condition that is not stabilized. A stabilized condition is any condition that has not received any new diagnoses, treatments, medications, scheduled examinations or tests, or any other type of medical attention within the lookback period.

Do note as well that in order to receive a pre-existing conditions waiver, you must be physically fit to travel, have purchased the insurance within a set time limit after making trip-related deposits (such as one might make for hotel rooms, tours, and cruises), and your travel insurance must cover the full cost of your trip. Additionally, some plans have an age limit, although this is very rare.

Certain travel health insurance plans will cover certain costs related to the death or illness of a non-traveling family member given a few conditions are met. Other plans do not, meaning that you would have to purchase insurance with trip-cancellation coverage separately. Make sure to thoroughly review your insurance plan of choice in order to determine whether or not it covers such an eventuality.

If you plan on participating in extreme sports or similarly dangerous activities

Certain plans include coverage for injuries sustained while doing extreme sports such as paragliding, skydiving, hang-gliding, and rock climbing. If any such activities are on your travel plan, make sure to choose a travel health insurance plan that covers the medical care that may be required as a result of these potentially risky activities.

If you are traveling to remote areas

In some parts of the globe, access to modern medical care may be limited, if not non-existent. Emergency medical evacuation, offered by certain travel health insurance plans, covers the costs of transporting you or one of your family members on your travel health insurance plan to a facility that can give you adequate care for an emergency medical condition.

In the worst of cases, you may even have to be flown all the way back to the United States. The costs for doing so can exceed $100,000 dollars, which is not the kind of money most people would want to pay out of pocket. This type of coverage includes air and ground ambulances and commercial flights in addition to emergency medical treatment received along the way.

How does travel health insurance work?

There are two different types of medical insurance plans.

The first is stand-alone medical insurance, which covers emergency medical and dental costs while traveling. However, these plans do not cover any of the non-medical expenses you may incur on a trip as a result of trip cancellations, loss of baggage or passports, or other non-medical emergencies. This type of travel health insurance may be useful if you already have other types of travel insurance, perhaps included with your credit card or your homeowner’s insurance, but not travel health insurance.

When purchasing a comprehensive travel insurance plan, it is important to ensure that it includes a travel health insurance plan along with other services and reimbursements. Such plans provide coverage for various events such as trip cancellations, delays, missed flights, loss of baggage, and even cancellations of activities like gondola tours and safaris. Before finalizing your purchase, verify that the plan includes adequate coverage for you and for the members of your family (if they are accompanying you on the trip).

How much does travel health insurance cost?

Comprehensive travel insurance typically costs anywhere from 5-6 percent of your trip costs. This may seem like quite a lot, but if you are spending so much money that you can’t afford to lose it on a trip, then being able to recoup this money in case of a cancellation is critical.

Standalone travel health insurance will usually cost less, but it can also vary quite a lot based on how comprehensive the plan you’ve purchased is. This type of travel health insurance will typically cost anywhere from 1 to 5 dollars per day of the trip. For extended stays and for all-encompassing travel health insurance, you may end up paying a lot more, with costs as high as a couple of hundred dollars.

Some other factors that may increase or decrease the cost of travel health insurance include age and destination. Certain destinations may increase the cost of your premiums by a lot, especially if they are prone to experiencing national disasters or if there is domestic turmoil occurring there.

Things to consider when deciding to purchase or purchasing travel health insurance

There are many different things that you may have to consider when choosing a travel health insurance plan, including, but not limited to:

Coverage

You will want to look for a provider that not only provides coverage in the countries you are traveling to, but that will cover enough expenses in case of an emergency that you will not have to pay much out-of-pocket. However, the more comprehensive the coverage, the more expensive the plan will likely be.

Examine your usual health insurance plan carefully to determine what costs it covers outside of the country. If there are gaps in this coverage, it is generally a good idea to purchase some sort of travel health insurance to supplement your usual insurance. Some things to look out for are copays, deductibles, out-of-network rates, and pre-authorization requirements.

Make sure to know if your travel health insurance requires pre-authorization before you get care, as you might end up responsible for footing the bill entirely if you fail to get treatment authorized. Insurance policies will also describe in detail exactly which types of care will be reimbursed, which is important to note. Some policies cover medical and dental, some just medical, and some cover emergency evacuation and some don’t. Picking a policy that is right for you requires significant attention to detail.

Pre-existing conditions

If you have pre-existing conditions, you will want to find a plan that either covers them anyways or find a plan that allows you to obtain a pre-existing waiver form so that you are covered in the case that a related medical emergency arises. Also ensure that if you are leaving behind ailing family members, your travel insurance will cover the cost of returning early and canceling the trip if their condition worsens.

Travel Plans

if you are planning on doing extreme sports, you will need to find travel health insurance with coverage for such activities. Some comprehensive travel insurance plans cover these activities and some don’t, so be sure to read the fine print before buying any type of travel insurance plan, medical or comprehensive.

Duration

You will most definitely want to get travel health insurance on longer trips, according to the CDC.

Age

Younger travelers will likely end up paying significantly less than older travelers for travel health insurance. This can be an important factor in determining whether travel health insurance is worth it to you.

Payment considerations

The vast majority of foreign healthcare providers will require you to pay upfront with either cash or credit card before you receive services. It can be helpful to bring an extra credit card to assist in paying for emergency medical expenses. The process for being reimbursed by your travel health insurance plan can be quite difficult, so make sure to document and save all bills and documents relating to the cost of your care and your injury.

Most claims will require a doctor to certify that you were indeed injured while on your trip. If you get injured but wait to submit a claim or lack proper documentation, you may end up flat out of luck.

Other services offered

Certain travel insurance plans offer different services that may be beneficial to you as a traveler. Most stand-alone travel health insurance plans likely won’t include these, but many comprehensive plans that include medical coverage do.