Travel Medical Insurance is very important to the summer travel season and is in full swing. Services that track travel data, reports that nearly 90% of all American adults, equating to almost 220 million individuals, have plans to travel this summer. Approximately 24% of adults, or over 60 million Americans, have international travel plans. As you begin to plan your summer getaway, remember to book in advance, allocate a larger budget, and anticipate delays because of the surge in travel.
It’s also worth considering travel insurance options. While vacations are meant for enjoyment and relaxation, it’s essential to consider travel insurance options to prepare for unforeseen incidents. Therefore, it’s always better to err on the side of caution.
What exactly is travel medical insurance?
Travel medical insurance is a policy that can cover emergency medical costs that you might incur while on a trip, such as hospitalization because of illness or injury. Most U.S. health insurance plans offer limited or no coverage abroad, and Medicare does not cover overseas travel either.
Travel medical insurance typically covers:
Emergency medical expenses: ambulance services, doctor and hospital fees, X-rays, and so on. Medical evacuation Prescription drugs 24-hour assistance services Accidental death and dismemberment However, travel medical insurance does not cover costs related to routine preventive check-ups, elective procedures, injuries from extreme sports, or intoxication. Pre-existing conditions are usually not covered unless you qualify for a waiver.
When choosing a travel medical insurance policy, you have several options:
| Coverage Type | Description |
|---|---|
| Primary Coverage | Your travel medical insurance will be the first to pay out, before any other health insurance you may have. |
| Multi-trip Coverage | Also known as annual trip insurance, this policy covers all trips made within a calendar year, provided each trip does not exceed a certain duration. |
| Single-trip Coverage | This type of policy covers one trip, from departure to return. |
| Secondary Coverage | You first file claims with your existing health insurance provider. If your U.S. health plan does not cover overseas travel or cannot cover all expenses, you then file a claim with your travel insurance company. |
When is travel insurance necessary?
If you plan to travel outside the U.S., it’s advisable to purchase a travel medical insurance, even if you’re in good health. This ensures you’re not left paying medical costs upfront in case of an accident or emergency, as most U.S. health insurance policies do not provide coverage abroad.
You might also consider a long-term health insurance policy, which includes trip cancellation, lost luggage, and trip delay coverage, although it will be more expensive. You can often find these benefits included with premium travel credit cards.
A 2022 study by Cigna found that 14% of people have experienced medical issues requiring care while traveling abroad. The study also found that 76% of consumers are either unsure how they would pay for medical treatment abroad or likely won’t have adequate coverage, and 48% expect to use their existing domestic health insurance plan.
United Healthcare recommends travel medical insurance for all travelers:
- Families with children
- Solo travelers heading to remote locations.
- People who visit a country where a different language is spoken.
- people with chronic conditions
How much does it cost?
Several factors influence the cost of travel medical insurance. Including the destination country, your age, deductible amounts, and the amount of coverage you need. The cost also depends on whether you’re opting for individual coverage or need coverage for family members traveling with you, for example, your spouse or children.
Conclusion
The cost of the policy typically increases with higher coverage limits and longer coverage durations. On the other hand, Forbes indicates that the average cost of a stand-alone travel medical insurance policy is slightly higher than this estimate, at $93.75 per trip. A price comparison conducted on Squaremouth for a one-month trip to Morocco in July 2023 for a 40-year-old revealed single-trip insurance rates starting as low as $54.57.