Travel insurance is expensive but essential
April 11, 2009
I AM taking the walk in my stride, secretly feeling rather pleased that I'm keeping up with the rest of my group, when an elderly pensioner in boots, no-nonsense shorts and minimal backpack shoots past like an express train. Soon he's a dot in the distance.
Most people have encountered their share of older travelers who can put people half their age to shame when it comes to fitness. But the fact is that advancing years make travel insurance more expensive, more difficult to obtain and, in some circumstances, impossible to get.
"Someone in their 80s could be a better risk than an overweight, smoking, drinking 60-year-old," says Michael McAuliffe, executive director of travel insurance company Suresave. Despite that, the 80-year-old would almost certainly need clearance from their doctor that they were fit to travel.
McAuliffe says existing conditions, such as high blood pressure, can be covered if they are controlled with medication. But companies are wary because of the huge costs that can result from a claim.
McAuliffe says cruising -- a popular choice with older travelers -- is a particular concern. "It can be expensive and is generally not refundable. So if you paid $30,000 for a long cruise and fell ill a week before you were due to go, the insurer has to cough up $30,000 straight away." A health problem at sea can be even more expensive. "A helicopter evacuation in the event of a heart attack that can't be treated on board can run into hundreds of thousands," he says.
The Department of Foreign Affairs and Trade handles more than 20,000 cases a year involving Australians in difficulty overseas, about 700 requiring hospitalization, 600 deaths and 100 evacuations.
It has an online brochure with useful advice specifically for seniors. DFAT says it's important to check that a policy covers emergency treatment, hospitalization and repatriation to Australia if necessary. Also, make sure the cover is appropriate to your circumstances and disclose in writing any pre-existing medical conditions.
If using credit card insurance, make sure you are aware of any excess.
An American Express survey in December found that 63 per cent of over-55s were more likely to take out travel insurance for their next overseas trip in light of economic conditions, a higher figure than
any other age group. Which raises the alarming prospect that they were previously willing to?
travel without cover.
But McAuliffe says that, in his experience, if seniors can't obtain cover they simply don't travel.
Travel insurance, although vital, can be a big expense for those of advancing years: McAuliffe says cover for a one-week holiday in the US would cost a 40-year-old $139; for an 81-year-old it would be $442. And at 90? "You're going to have to stay at home," he says.
The Australian Securities and Investment Commission advises travelers to carefully check what their travel insurance covers and, more importantly, what it doesn't.
It says the most common reason insurers give for refusing claims is that it's excluded under the policy. It's surprising to learn that you might not be covered if the airline you are traveling with stops trading, for instance. Many insurers will not cover against terrorism or acts of war. If they do it may be a condition that the policy was taken out before the problem occurred.
Theft or loss of luggage may not be covered if it was left "unattended" in a "public place". (Definitions of unattended and public place are worth checking with the insurance company.) Many insurers don't cover cash or have limits on how much is covered.
ASIC advises shopping around for a policy that suits you and the type of holiday you're planning: "Don't just chase the cheapest." It says it may be worth considering reducing any excess by paying a higher premium. A useful tip is to add a couple of extra days to a policy to make sure you are still covered in the event of a delay.
It's also important to take a copy of the policy with you on holiday so that you know what to do if something goes wrong. Whatever the age group, DFAT's slogan holds true: if you can't afford travel insurance, you can't afford to travel.
Source : http://www.theaustralian.news.com.au
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