Podcast conversation with Sean Crosby.
I’m grateful Sean came on the show to simplify what is often considered overly complex. He answered every hypothetical question I came up with and shared many other useful tips.
As consumer advocate Christopher Elliott says “You should consider travel insurance for every trip, but not every trip needs to be insured.”
IMPORTANT NOTE: Travel insurance policies and coverages change frequently. Since the recording of this episode certain Travelex policies have changed. For example: entrepreneurs are no longer able to use Cancel for Business Reasons as a covered reason to cancel. Employees are still eligible for Cancel for Business Reasons, however the policy must be purchased within 21 days of initial deposit for that coverage to be included. Please always refer to the latest policy with your quote for the most up to date information.
There are many types of travel insurance. “Traditional” travel insurance falls into 4 main buckets.
Cancellation
- Ex: work reasons, illness, medical emergency
Interruption
- Ex: prepaid, nonrefundable, unused portions of your trip and additional transportation expenses if you have to go home early
Delay
- Ex: Traveler tests Covid positive while traveling and has to quarantine. Coverage to ‘assist’ with hospital, hotel or rental (there are maximums)
Medical
- Ex: hospitalization, evacuation, referrals to local clinics, hospitals, medical facilities
Some examples we discussed:
#1 EXAMPLE
- You’re a lawyer working for a corporation, married with 2 kids
- You’ve planned a bucket list family safari 1½ years in advance
- Your non-refundable costs are $100k
- A month before you are expected to leave, your company’s IPO is delayed to the 5th day of your trip. You have to cancel the entire trip.
What happens without travel insurance?
- Typically 100% loss on land portion
- Potentially will receive flight credits
With travel insurance?
- If your employer provides a notarized letter that you need to be at work and can not go on the trip – it is considered a covered event under Cancel For Work Reasons.
#2 EXAMPLE
You are the CFO of a publicly traded company.
- You have 3 kids and one is in college
- You don’t want to plan your family’s bucket list Switzerland hiking trip because you know either work will interfere for you or your college daughter may get a job.
- So you never go.
OR
- You take a leap and book it – $90k non refundable trip costs
- 3 months before your trip your daughter tells you she finally found a summer job and can’t go on the trip.
What happens?
- If her employer provides a notarized letter that she needs to be at work and can not go on the trip – it is considered a covered event under Cancel For Work Reasons.
#3 EXAMPLE
Medical issue on a trip
What if… You have a minor incident like:
- sprained ankle
- stung by jellyfish
OR
You have a major incident like
- a car accident
Listen to the show to hear a walk through of what happens.
Adventure Sports
There is a list of what are considered Adventure Sports and require an upgrade (ex: hot air ballooning). If you’d like to know send me a note and I’ll send it to you. Even if you may not think you will do one of these things, if there’s any chance, you’ll want to get it, otherwise you will not be covered.
Not considered Adventure Sport
- Shark Cage Diving
- Hiking (non-technical)
QUIRKY ITEMS
Extra coverage if purchased within 21 days
- Pre-existing conditions
- Insolvency of travel supplier
Other reasons to get travel insurance:
- Required by some countries – ex: T&C, Oman, Chile
What Travelex doesn’t cover:
- Fear of travel
- Vaccination requirements changing preventing travel
- Travel bans/warnings or restrictions that prevent traveler from reaching destination
Takeaway tips/info
When should I consider travel insurance?
- Large non-refundable payments
- You want peace of mind if medical issues were to happen to you, traveling partner or close family member before or during the trip
When you may not need travel insurance:
- Minimal/no cancellation penalties
- If you get a credit for future travel and are ok with that – airlines, hotels
– TIP: depending upon the trip – consider the airline you are flying – will you fly them again? - NOTE: even if you don’t need it for trip cancelation, consider getting minimal coverage for medical issues
Other travel insurance membership provider that I work with for the right type of trip:
- Global Rescue