While myHSA Health Spending Accounts (HSAs) offer a tax-effective way to manage health and dental expenses, one weakness of this set up is the lack of coverage for catastrophic claims such as travel insurance, disability, or a critical illness.
Travel insurance is crucial for covering unexpected, high-cost incidents such as medical emergencies, trip cancellations, and natural disasters. Not surprisingly, medical emergencies are top of mind for most travelers, especially when travelling to the US where medical costs can add up easily.
Many credit cards offer travel insurance as a perk, covering scenarios like trip cancellations, lost luggage, and medical emergencies. However, there are some important shortfalls of most credit card policies that you might not be aware of:
Coverage limitations: The average night in a US hospital costs $16,000 USD, so it's important to know your credit card's overall annual or per-trip limit. Provincial healthcare plans may cover less that 10% of your travel medical expenses.
Penalties for accessing care immediately: Many credit card companies penalize you for seeking treatment prior to contacting them.
If you don't book your entire trip on your credit card, your coverage might be void. It's important to verify how much of your trip needs to be booked on your card before you travel to ensure you have adequate protection.
Travel companions: there aren't very many credit card coverages that would take care of your travel companion in the event that you are dealing with a medical emergency.
Pre-existing conditions: Understanding how your coverage would be impacted is critical if you have sought medical attention or experienced symptoms related to a new health condition or modified your treatment for an existing condition. For individuals over the age of 65, this clause is very important to understand.
Trip Length: Ensure you know how long you can be outside of your province of residence on a per-trip basis. Credit cards can differ with respect to trip length.
Few people experience joy in reading the fine print of policies and credit card agreements, but it's so important with respect to travel insurance.
Talk to us if you need travel insurance for your next destination. We'd love to help you find an affordable solution tailored to your needs.
Comentários