Insurance is one of those purchases that can feel like a necessary evil. After all, you’re paying money to cover you in case a rare incident happens. But for Alberta native Dione Amundson, her travel insurance may end up saving her around tens of thousands in medical bills.
Amundson and her son traveled to Japan for a two-week trip in July, according to Global News (1). While abroad, Amundson suffered a perforated intestine, an infection had set in and she was considered septic. Japanese physicians gave her antibiotics to treat the infection, but she wasn’t getting better.
Eventually, Amundson had to go in for emergency surgery followed by rehabilitation. The mother-son duo had their trip extended by over a month due to the incident. They expect their trip to cost them around six-figures after the medical emergency, cancelled flights, return flights and other necessary charges — though there is one silver lining.
Amundson had travel insurance through her employer, and she hopes the policy will cover up to 80% of her unexpected charges.
How travel insurance works
Travel insurance is a type of insurance policy that covers you for unexpected costs you incur while abroad.
These costs could be due to a medical emergency, lost baggage, flight delays or cancellations. Most importantly, travel insurance policies allow you to get medical attention anywhere in the world that the policy covers, so you aren’t left without help or having to foot a potentially massice bill out of pocket.
In exchange for paying a set fee, travellers are covered for specific occurrences under their chosen policy. Many policies provide coverage for around $5 million to $10 million in out-of-country medical expenses. Other policies only cover travel interruption/cancellation costs up to a few thousand dollars or five-figures. The most expensive type of insurance, known as “all-inclusive,” covers all the above situations and comes with a much higher fee.
Canadians can purchase travel insurance through their employer’s benefits plan, a travel credit card (if they paid for the trip with it), a travel agent, insurance broke, their chosen financial institution or online.
Why you should buy travel insurance
Travel insurance can take the financial sting out of unexpected medical issues while abroad, and in fact, the Government of Canada recommends Canadians purchase it before travelling overseas (2).
The Canadian government largely recommends this because the nation’s medical insurance almost certainly will not cover any unforeseen medical expenses while you are out of the country. Without travel insurance or enough funds on hand to pay for medical services, you could be denied medical assistance depending on the country you are visiting.
The government also recommends purchasing trip interruption and cancellation insurance, in the event your trip is delayed or cancelled due to an unforeseen event. This will cover your costs if you need to re-book flights or find a different way to your destination. Lost baggage insurance is also recommended as the cost of your lost belongings will be reimbursed on the value of the items lost, the cost to repair them, or their actual cash value.
If something does go wrong, travel insurance can cover many — if not all — of your unexpected bills.
What you should do before travelling abroad
Deciding on getting travel insurance is one piece of the puzzle when it comes to being prepared. Make sure to follow these tips to get the most out of your trip and lower your financial risk while abroad.
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Review travel advisory warnings. Many insurance policies will not cover any losses you retain if you travel to a no-travel or a no-non-essential travel zone. Review the government’s list of travel advisories before you book your trip to be on the safe side.
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Make sure you have enough coverage. Always double-check you have enough coverage for your trip. If you’re travelling with expensive goods, make sure your baggage insurance covers the cost of your valuables. For medical insurance, $5 million is usually sufficient coverage. If your plan through an employer doesn’t cover all your needs, you can purchase “top-up” insurance to make sure you’re fully covered for any contingency.
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Read the policy terms closely. Though insurance does mitigate losses, it doesn’t cover every situation. Many policies will not cover you if you engage in high-risk activities such as scuba-diving or sky-diving. Also pay attention to the “prep-existing medical conditions” section if you have a medical condition.
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Be prepared to make a claim. Always remember to keep original copies of all receipts, reports and key documents related to your cancelled flights, medical stays and other unforeseen costs. When it comes to claiming lost baggage, make sure to make a list of the items you packed beforehand, along with their estimated market value. Take photos of any high-value items, too.
Following these after purchasing travel insurance won’t just save you money in the event of an unexpected travel issue — it’ll save you the stress of worrying about the costs.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Global News: Sudden medical emergency costs Alberta family nearly $100K while on vacation (1); Government of Canada: Trip interruption and travel health insurance (2)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.