Travel Insurance for Seniors: A Guide to the Best Policies

Categories of International Travel Insurance

There are many different types or categories of travel insurance for seniors. Here are the main types of travel insurance and what they cover:

Trip Cancellation/Interruption Insurance:

• Coverage: If unforeseen circumstances force you to cancel or interrupt your trip, this insurance reimburses you for non-refundable expenses such as flights, accommodation, and tours.
• Real-life Example: Imagine planning an exotic vacation, but falling seriously ill just days before departure.  Or perhaps a close relative suddenly passes away. Trip cancellation/interruption insurance ensures you get your money back and in some cases can reschedule your trip once you recover.

Medical Coverage Insurance:

• Coverage: Covers medical expenses during your trip, including emergency medical treatment, hospital stays, and doctor visits. Since, most Medicare policies do not cover medical expenses outside of the United States, it can be important for seniors to have supplemental insurance. Some medical insurance plans, such as N-type Medicare Supplemental Policies, which we have, do offer a $50,000 maximum limit lifetime international medical benefit.
• Real-life Example: While exploring a new city, you suddenly fall ill and require medical care. Medical insurance ensures you receive proper care without financial strain.

Baggage Insurance:

• Coverage: Protects your belongings in case your luggage is lost, stolen, or damaged during travel.
• Real-life Example: Your checked baggage goes missing during a layover. Baggage insurance helps cover the cost of replacing your essentials.

Emergency Medical Evacuation Insurance:

• Coverage: If you need urgent medical evacuation due to illness or injury, this insurance covers transportation, ambulance services or medivac, to the nearest suitable medical facility. They can also cover transportation back to the home country.
• Real-life Example: While trekking in a remote area, you suffer a serious injury. Emergency medical evacuation insurance ensures you’re transported to a hospital promptly.

Trip Delay Insurance:

• Coverage: Compensates you for additional expenses incurred due to trip delays (e.g., missed connections, flight cancellations).
• Real-life Example: Your flight gets delayed, causing you to miss a connecting flight or a cruise departure. Trip delay insurance covers accommodation and meals during the unexpected wait and possibly other expenses.

Rental Car Damage Insurance Protection:

• Coverage: Some policies include this protection as do some of the travel specific credit cards. Coverage can be either primary or secondary to your own car insurance.
• Real-life Example: You have a car accident. These policies will cover damage to the vehicle usually with a deductible and a max coverage limit. These policies do not cover liability insurance.

Personal Experience with Travel Insurance For Seniors

The first decision you need to make is which categories of travel insurance do you need. In our case, we are willing to self-insure against the risks of trip cancellation, trip interruption, trip delay, and lost/stolen/damaged baggage. We take many trips and aside from occasional baggage mis-handling we have never had a problem. While our situation may be unique, we recognize that the savings we have already achieved by not spending on these policies will make up for any future costs. We also feel we have adequate rental car damage protection through our normal automobile insurance and through the credit cards we use.

We also find that the policies that are offered when you book an airline, cruise, hotel or other travel activity, are specific to that particular expense, are usually expensive and certainly not selective in what you purchased. In fact, many of the events that those policies are insuring against are in some cases already covered, such as airline flight changes, or hotel cancellations which are usually allowed until a few days before arrival. Therefore, we are only needing policies that cover medical emergencies. This requires both Medical Insurance and Medical Evacuation Insurance.

Medical Evacuation Insurance vs Travel Health Insurance

A Medical Insurance Plan and Medical Evacuation Insurance are covering two very different types of medical benefits related to a medical incident. Because we already have some medical insurance in place with our Medicare supplemental plan, we currently only have a separate annual medical evacuation plan known as Emergency Assistance Plus.

These insurances that cover medical expense work in tandem to cover essential services and treatments while offering entirely separate types of benefits.

1. Emergency travel medical insurance pays for the emergency medical care you receive while you’re away. This includes doctor bills, lab tests, emergency surgery, etc.
2. Emergency medical evacuation insurance pays for you to be rescued or evacuated mid-travel . It will ensure you are transported to a proper medical center for treatment. Also repatriates remains in the event of your death.
3. Combining both coverages. According to the LA Times, the best travel insurance plans combine both of the above coverages into one comprehensive travel insurance package resulting in maximum medical benefits. These medical plans can also include extras like baggage coverage or rental car damage expenses.

What does Emergency Medical Evacuation Insurance Cover?

Medical evacuation travel insurance (or emergency medevac insurance) will pay for a range of non-medical and even non-emergency services. The following services are typically covered with emergency medevac coverage:

• Emergency transportation to a hospital of your choice. All medical evacuation plans offer coverage to the nearest suitable medical facility equipped to handle your condition. However, some plans allow you to be sent to a hospital of your choice. Transport method depends on your condition.
• A medical escort for returning home. Your coverage may pay for a medical escort, such as a doctor, to accompany you home safely. This means you won’t be stuck traveling home alone, which can be a major blessing when you’re sick or injured and require extra assistance.
• Return travel costs for your children. Evacuation coverage can pay for a return ticket for your dependent children who are traveling with you.
• Bedside companion’s room and board. If you are ill or injured and require hospitalization, some emergency medical evacuation plans cover non-medical expenses like your bedside companion’s room and board so your travel companion can accompany you as you receive proper treatment.
• Travel expenses for a family member or friend to reach you. If you are alone and become hospitalized at your travel destination for a longer period of time your emergency coverage may pay for a family member to travel to visit you.
• Repatriation of remains. Finally, you should know that your evacuation plan may pay to have your body returned home if you incur an accidental death during your vacation.

How Much Does a Medical Evacuation Cost Without Insurance?

The costs for medical evacuations can be astronomical and can add up to hundreds of thousands of dollars. It’s best to anticipate that when traveling to a foreign country you could end up paying $250,000 or more for an international transfer to a U.S. facility to address a medical emergency. According to the CDC, The total cost of medevac varies by location. It ranges from $25,000 for transport within North America to ≥$250,000 for more distant and remote locations. Costs increase when the patient being evacuated is critically ill or needs complex infection control measures.” Therefore, with emergency medical evacuation coverage in place, there may be zero out-of-pocket expenses associated with this care. In other cases, your costs may be limited to the travel insurance deductible amount or a few hundred dollars.

When to Buy Travel Insurance

With many policies, travelers can purchase trip insurance any time before the departure date. However, getting travel insurance as soon as you make your first payment towards your vacation is essential. Many policies offer early purchase benefits. Some plans will waiver pre-existing medical conditions if you buy insurance within 14 days of your first deposit.

What if you don’t know how much your overall trip will cost? Many travel insurance providers allow you to increase your cancellation coverage as you plan your trip. Paying as you go allows you to lock in your time-sensitive benefits and maintain them as your costs grow.

Fine Points of Travel Insurance

Trip Cancellation vs. Cancel for Any Reason

While “trip cancellation” and “cancel for any reason” may sound the same, they cover different aspects of your vacation. Trip cancellation insurance provides benefits if you cancel your trip from an outside influence the policy specifically covers. For example: if an immediate family member becomes seriously ill and you must cancel to take care of them, your insurance plan could help you recover non-refundable costs, like airfare or tour costs.

Most travel insurance shoppers are concerned about specific cancellation or interruption circumstances. Whether it’s being required to work at the last minute, a traveler becoming ill before traveling, or a natural disaster halting your travel plans, check the policy for its complete list of covered reasons.

However, standard trip cancellation does not include circumstances that make you feel afraid or no longer want to travel. Instead, cancel for any reason benefits allow you to change your mind about your trip at least two days before departure and still collect some reimbursement. It won’t be a complete repayment of your costs. Typically, cancel for any reason helps travelers recover between 50% and 75% of their purchase.

What Does Travel Insurance Not Cover?

Most travel insurance policies do not cover circumstances like:

• War, civil disorder, and riots.
• Travel to certain embargoed countries like Iran, Venezuela, or Syria.
• Fear of travel due to pandemic outbreak or recent plane crashes.
• Natural disasters that already occurred or cyclonic storms after they’ve been named.
• Unfavorable weather, like rain forecasted during your beach vacation.
• Most pregnancy-related conditions.
• Hazardous activities like skydiving, mountaineering, or rock climbing.
• Illegal activities or under-the-influence accidents.
• Medical tourism.
• Non-covered dental work.
• Traveler’s injury or illness that already occurred.

Primary vs. Secondary Medical Coverage

Some travel insurance policies specify they are primary coverage, meaning they will pay before other insurance you have, including health insurance. Consider primary coverage if you don’t want to deal with your health insurance provider overseas.

Medical Evacuation Fine Print

Make sure you read the fine print in the Medical Evaluation Policy. The EA+ policy that we have gives the company the right to choose the hospital that you get evacuated to. A few other policies will give you that right. We bought our annual policy because it was the least expensive. We are reconsidering that decision this year.

How to Choose the Best Travel Insurance Coverage for You

With so many choices available, choosing the best travel insurance comes down to your needs, budget, and concerns:

• Are you concerned about a hurricane disrupting your beach vacation?
• Are air travel delays your biggest concern?
• What if an unwell family member dies just before your trip?
• What if you have a car accident during your trip?

It is important that you carefully review any policies you’re interested in to ensure they cover what you want. In addition, you can ask the company to check for you and help you narrow down the right coverage. Make sure you are talking to a licensed agent. Also, consider your travel insurance needs in the context of your overall travel itinerary and plan. Don’t just purchase insurance for one part of a trip. Please see our post on Planning a Trip for more information about constructing a solid trip plan.

Frequently Asked Questions

Will travel insurance for seniors cover COVID-19?

Many travel insurance plans now include emergency medical coverage for COVID-19 infections away from home. Insurance companies consider the pandemic a “known event” and may not cover Covid-19 for trip cancellation, interruption, or travel delay benefits. However, most treat Covid-19 like other infectious diseases, like the flu. Before settling on a plan, check the travel insurance company’s website for their Covid-19 statement to gauge the limitations of their coverage.

How quickly can I get travel insurance coverage?

Many insurance policies provide your documents nearly immediately, delivered electronically by email or to a smartphone app provided by the company. Trip cancellation benefits begin immediately, and the rest of your insurance coverage starts on the departure date. Travel insurance companies typically don’t allow you to buy a policy once your vacation begins. For example, you can’t file a claim for anything that happens before your insurance goes into effect.

How much does travel insurance cost?

Travel insurance costs typically depend on how much cancellation coverage you need and if you are seeking comprehensive bundled insurance or not. The trip cost is a factor in the cost of the insurance policy. A $500 trip will cost significantly less to insure than a $5,000 trip. In addition, the traveler’s age plays a role in the price, with older travelers paying a premium.

On the other hand, buying travel medical insurance without cancellation can be relatively affordable. However, if you require pre-existing medical coverage, carefully read the policy’s requirements to activate the pre-existing condition waiver—it might require you to cover all of your prepaid trip costs to start that benefit.

Can I cancel or get a refund on travel insurance?

Most states allow you to cancel a travel insurance policy within 7 to 14 days for a refund on the premium, assuming you haven’t taken your trip or plan to file claims. The insurer typically can’t offer a refund after the “free look period” expires.

Is it cheaper to buy travel insurance at the last minute?

No, the price is the same regardless of whether you buy the policy the day before departure or one year in advance. However, be aware that you may miss out on essential features like cancel for any reason and pre-existing condition coverage if you wait to buy a policy for more than 2 to 3 weeks after paying your initial deposit.

Best Way to Purchase Travel Insurance for Seniors

We recommend the best way to purchase travel insurance for seniors is to use a company that can compare different policies. Here are links to two travel insurance providers we recommend to buy all kinds of travel insurance:

• Square Mouth Travel Insurance
• and one we recommend for cruises Insure My Trip.

Final Thoughts

First, although many policies seem identical, they are not. Each policy has subtle differences that are not readily discernable to the average traveler. Pay particular attention to exclusions and special coverage conditions. For example, medical evacuation policies normally require that the company makes all the travel arrangements. Therefore it is important that you understand the fine print of any policy. A 14 day cancellation grace period is normally provided after purchasing a policy. Make sure you understand the fine print either before you purchase or during the cancellation period. The better companies will allow you to talk with a licensed agent, who will answer your questions. Take advantage of this customer service, but make sure you are talking to a licensed agent.

Second, every trip is different, so make sure you are purchasing the right policy for that trip. Ask yourself questions such as: “Do I really need cancellation insurance and medical evacuation coverage for this trip or just medical insurance”? Also, check your credit card, your automobile and your regular health insurance to see what conditions may already be covered.

Finally, shop around. The policy that is being first offered to you by the airline, hotel or cruise line is probably not the best policy for you to purchase. The two companies that we mentioned above can be a great help in finding you the best policy for your personal needs. In any case consider the risks of not having a comprehensive plan in place. Peace of mind can be worth a lot.