Pat Wuensche and her family are seasoned travelers. So when they found a two-part cruise, Los Angeles to Japan, then Singapore back to the U.S., they jumped at the opportunity to go on the 72-day cruise.
At the time of booking, their travel agent offered insurance and Wuensche didn’t hesitate.
“I thought, ‘We’re going to be gone a long time,’” she told Arizona’s Family News, “‘we better cover ourselves.’ So I went ahead and paid for it on both trips, just as a precaution.”
Don’t miss
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
- Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
- Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Unfortunately, the safety net vanished when they needed it most. Now, they’re left with a little more than $45,000 in uncovered expenses, despite having paid for a policy they thought would protect them.
A $45,000 shock
Wuensche fell ill and was hospitalized once the family arrived in Japan.
“So, [the doctor] said, ‘How long can I keep you in the hospital?’ And I said, ‘How about one day?’” Wuensche said. “And he said, ‘No, you need to cancel the whole rest of your trip.’”
The second cruise was canceled, and Wuensche spent a total of 57 days in the hospital.
“The doctors knew very few [English] words,” she said. “When they first discovered it was COVID, I was put in isolation so my family couldn’t even visit. I was really in isolation. It was tough.”
Wuensche knew the bills would be steep, but she felt reassured by the insurance she’d purchased.
When she got home, Wuensche filed a claim with Aon, the company affiliated with the cruise line.
Instead of reimbursement, Wuensche says she faced months of silence and repeated requests for more documents.
“It is frustrating because you think you can go there with peace of mind knowing if something happens, you’re OK,” she said. “And unfortunately for us, something happened.”
After months of back and forth, Aon responded. According to the company, Wuensche’s policy only covered her cruise, not the medical emergency that caused her to cancel it.
They agreed to cover the $8,000 cruise cancellation fee, but not the $45,000-plus in hospital and hotel costs.
“It should be covered. Absolutely,” Wuensche said.
The policy did save the family from cruise cancellation penalties, but it left them on the hook for the much larger cost: the actual medical emergency.
It’s a tough lesson in the realities of travel insurance.
Travel insurance can be quite specific, and even a slight change in your itinerary can make your coverage null and void.
Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
The fine print travelers can miss
For millions of Americans, like Wuensche, travel insurance feels like peace of mind.
According to Hotel News Resource, the number of paid claims for travel delays grew by 15% in 2024, with average payouts rising by 8% compared to 2023. The most common claims were emergency medical ones — for the first time in more than a decade — making up 27% of all paid claims.
However, insurance can feel like a maze of fine print, exclusions and technical loopholes that most travelers only likely discover after their claims are denied.
Wuensche assumed that since she had purchased insurance for the duration of the trip, she’d be protected regardless of what happened. But based on the terms and conditions, once the second part of the trip was “canceled,” all other benefits, including medical coverage, were terminated.
How to avoid a financial meltdown on vacation
Want to avoid being the next headline? Here are some travel insurance tips to keep in mind.
First, buy your insurance early, ideally, right after booking. Waiting too long can exclude you from coverage for unforeseen events, like storms or labor strikes.
Second, read your entire policy and not just the summary. Pay attention to cancellation rules, limits on coverage and what triggers termination of benefits. Don’t assume that because you’re on a trip, you’re still covered. As in this case, policies can end medical protection the moment your travel status changes.
Third, ask direct questions before buying. Will I be covered if I cancel midtrip? What if I’m hospitalized in another country? Do I need to file through my health insurance first? Get the answers in writing if possible.
Finally, don’t assume your credit card or employer-provided insurance will fill the gap. Those benefits can be secondary and cover only what is not paid for by a primary insurance plan.
The Wuensche family’s $45,000 ordeal is more than just a travel horror story; it’s a cautionary tale for every traveler who’s ever clicked “add insurance” without doing their due diligence.
What to read next
- Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
- How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
- This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
