Traveling abroad can be wonderful and memorable experience. But the reality is that life’s unexpected twists and turns don’t take vacations. When you’re retired without the safety net of workplace benefits and you’re out of the country, you always run the risk of unexpected medical expenses. That’s why travel insurance is so important.
There are three risk-reducing areas that make travel insurance a must:
- Comprehensive coverage: Even minor incidents, like a broken arm, can set you back thousands of dollars. By investing in travel insurance, you can make sure you’re financially protected in case of medical emergencies.
- A variety of plans: Not all travel insurance plans are the same. Choosing the right one is crucial. Some credit cards offer limited medical coverage for travelers, but it’s often not as comprehensive as standalone insurance. So it’s essential to understand the terms, conditions and limitations of your credit card coverage if you choose that route.
- COVID-19 considerations: COVID-19 highlighted the need for insurance that covers pandemic-related incidents. While many travel insurance providers exclude COVID-19 from their coverage, companies like Manulife stepped up to offer plans that cover it.
Dos and don’ts when it comes to buying travel insurance
Dos:
- Do shop around: Don’t settle for the first travel insurance plan you come across. Shop around, compare plans and ask questions about coverage. Consider factors like your health history and trip duration.
- Do use a travel credit card (maybe): If you think you want to use your travel credit card for coverage, make sure it actually provides coverage you’re comfortable with and that you’re able to use it for relevant expenses if you need to.
- Do purchase well in advance: Buying travel insurance early can save you money. Some plans, like Manulife’s Travel80, offer guaranteed premiums until age 80, making it a cost-effective option for long-term travelers.
Don’ts:
- Don’t assume provincial coverage is enough: It’s minimal and won’t adequately protect you during an international medical emergency. Relying only on provincial healthcare can leave you with significant out-of-pocket expenses.
- Don’t forget about your power of attorney: For financial matters related to your investments while travelling, make sure you have a proper power of attorney in place. It can manage your affairs if you’re incapacitated while you’re away.
Remember, your retirement years should be about creating unforgettable memories, not dealing with unexpected financial burdens. If you’re active and want to explore the world, travel insurance is an essential component of your retirement plan. It offers peace of mind by protecting your finances and ensures you can count on the necessary medical care when you need it most.
If you have any questions about travel insurance, investments or your financial plan, reach out to us anytime.