What You Need To Know About Travel Insurance

I am not an insurance salesman nor do I work for an insurance company.  However, I have been around the block a few times and have learned a thing or two about buying insurance. This is especially true about buying “Travel Insurance” and that is what I want to talk to you about.

First you need to know that there really isn’t anything such as Travel Insurance. What we call travel insurance is in reality a cross between travel protection plans and an insurance policy. Suppliers offer Travel Protection Plans that are usually underwritten by a third party insurance company. Travel (trip) Insurance are a travel product offered by an insurance company. Most Travel Insurance companies sell only Trip Insurance.

Trip Protection Plans from Suppliers usually cover the immediate cost of the trip with that supplier. So, if you spend $2000 with a cruise line and purchase their trip protection plan you will be entitled to up to the amount you paid the supplier up to the $2000. They rarely cover repatriation cost, emergency medical cost, any transportation they did not arrange etc.

Travel Insurance does everything that the trip protection plans do but also will continue all other expenses associated with your travel. Things like medical expenses, repatriation and cost of all services for which you pay money.  In both cases the plans will have conditions, limitations and exclusions.

We recommend that you take advantage of these opportunities to protect your travel investments. At the very least you should avail yourself of the supplier plans but we think you should really look at the Travel Insurance plans if you want the maximum coverage.

Now a few points when buying all types of trip protection:

1. Timing is everything . . . . . There is nothing more important than timing when it comes to any type of insurance. When you buy is often more important than the what you buy. Timing allows these companies to offer incentive coverage. Things like covering a Pre-Existing Conditions Waiver; Supplier Bankruptcy, Default, and  Cancellation coverage; or even “Cancel For Any Reason” (CFAR) benefits to clients who purchase coverage within a set number of days of initial deposit.

Keep in mind that if your are reading, watching or hearing about something happening it is probably too late to cover that item.  For example, a hurricane has entered the Caribbean will make it too late to buy coverage for your cruise. It works just like flood insurance and you know what they say about that . . . . “It's too late to buy flood insurance when the flood waters are rising!" Not only is this true for hurricanes it also applies to terrorist attacks, winter storms, and any major event that would normally be covered.

2. Insurance only covers the unknown and what if’s. What I mean is - there must still be an unknown element to your travel. If there is not, then it cannot be  insured it because the issue has already been resolved.  For example, no one would try to get auto coverage after they have an accident and expect that accident to have coverage. The same applies to travel insurance. If you know you need to cancel, then it’s probably too late to get coverage.

3. Documentation is never personal.  A request for 3rd party verification is not a question of the agent or customer's integrity. It is simply a condition of coverage.  In every instance of a claim there must be verification by another source. Think of it this way, the claim is a non-fiction story but until verified that is all it is, a story. one, but still a story. When all the facts check out, the process is quick and painless. It is when documentation is nonexistent, or doesn't match the story, that we will see complications.

4. No insurance covers the fear of something happening. We are living through a terrific example of this, the Coronavirus.  I is covered if you catch the prior to the trip’s departure date or while on the trip. However, it will only be covered through a “Cancel for Any Reason” policy and even then you better read the Exclusion section of the policy. Fear of catching something is not covered and will not get you a refund of your trip cost.  No one is eligible for trip cancellation if they are simply afraid of what may happen.

5. Exclusions always apply. The single most imporatantpart of any trip protection plan is the section entitled EXCLUSIONS. The most important information in any kind of insurance or protection policy is the list of what is not covered or included.

This section lists everythiing the carrier refuses to cover because they don’t feel that the premium they are collecting is sufficient to the risk. Some standard exclusions are war, crimes, and the most infamous of, all acts of god. Additionally, all travel insurance policies in the market today, exclude pre-existing conditions. The only way to get them covered is to get a waiver usually at an additional premium. This is why it is important you are familiar with the exclusions of the product you are buying 
 
As a Travel Agent I have seen a lot of third Party Coverages. My first recommendation to clients is a company that has the fewest exclusions. Companies that have hidden exclusions in their policy and use words, such as "Act of God" is not a plan I would recommend to those who are not insurance experts. And let's face it, most people aren't. Consequently we recommend TravelSafe for all your travel needs

The Coronavirus: The Crippling of an Industry

I know that being critical of the media and the government regarding the cruise industry is like spitting into the wind but here goes anyway.  The truth is all the hyperbolic reporting and CDC warnings that border on "shouting fire in a crowded theater" is severely wounding one of the most successful industries we have. Not only so, but just as important they are mindlessly ripping the livelihood of multiple thousands of people to shreds.

I have been young and now I am old. I mention that simply to say I have lived through just a whole bunch “medical crises.” I have seen epidemics come and I have seen them go. I cannot remember a time when influenza of some variety hasn’t plagued us. Each one was taunted as the one which was going to end our civilization as we know it.  These things are are a part of being human. To be alive is to be at risk.

I do not say that to be a pessimist. Quite the contrary. I am an optimist. I believe this too will pass. Ny concern is with the damage the panicked response of the media and the government. The media is hyperventilating and the government is over reacting. The media is also speaking with multiple voices thereby sending an uncertain message leaving people confused and afraid. The government is overextending the quarantining of people groups rather than individuals. They quarantine whole ship loads of people and not just those who test positive.  All of this has a ripple effect throughout the economy further compounding the problem. Add to that the oil crises created by Russia and Saudi Arabia being unable to agree on oil prices and suddenly a strong economy is suddenly anemic.

Nearly 500,000 people in some form or fashion owe their livelihoods to the cruise industry. It is far more reaching than just a big ship with a large crew and a bunch of passengers. It is food suppliers, fuel suppliers dock workers, transportation companies, hoteliers, and local tour operators, restaurants and much, much more.

People, don't throw away your common sense. Look at the facts not the hyperbole coming out of  news media personalities. These people are probably not as smart as you and I and yet they prattle on as though they were authoritative. Same holds true for all the non-authoritative healthcare professionals.

We know that more people will die from the annual influenza than from this virus and do every year and still on 43 percent of adults get an annual flu vaccination. Still, because it has been designated “a new virus” and given an exotic name people are rightfully concerned. Add to this the hyperbolic reporting that leads people to needlessly panic and that results to them making irrational decisions.

If our governmental, political and health care professions really cared about these viruses they would have had a cure for the "common cold" years ago. It too is a virus and as I understand it belongs to the same family group as this “new plague.” It would probably provided a jumping-off place for a vaccine or maybe even a cure.

The truth is, if we continue to respond to this virus the way that we have thus far we are going to see our economy go down in flames.  You simply cannot hide from a virus as though it were a thief in your house. Sooner or later, sick or well, people must get on with living . . . . the wheels of industry must not be allowed to grind to a stop.

According to Reuters.com, anonymous sources within the government said Vice President Mike Pence and the team assigned to handle the U.S. reaction to the coronavirus outbreak are reportedly considering an advisory for some or all American travelers to temporarily avoid taking cruises.

The effects of this virus are different in different population groups. Young and otherwise healthy older people generally feel no or at worse very mind effects from the virus. In fact, we are told, that many, many people will attract the virus and never know they have it. It will come and go totally un-noticed. These people should go on with their lives almost as though nothing were happening. Again, they should use their common sense and practice good hygiene . . . . something they should be doing anyway.

Indeed, if you are in relatively good health and can get away on short notice now would be a great time to take a close in cruise. Prices and amenities will never be better and the risk of the dreaded coronavirus is low and even if you do get it the effects a generally light.

However, elderly people, people with underlying health issues like COPD or have compromised immune systems should also use “common sense and caution.” But that is true for this group of “at risk” folks whether planning a trip to the grocery store or when planning a trip on a cruise ship.  If you fall into this group the virus may well exacerbate your already exisiting condition.

There is a reason why our doctors constantly ask older patients about flu and pneumonia shots. Those us who are older know from experience it takes us longer to get over anything health related. This is especially true for anyone but elderly people who have underlying health issues.

I am 73 years old and in relatively good health and I can tell you for certain that I wouldn’t hesitate to take a cruise tomorrow. To be perfectly honest I am more concerned about the quarantine process than I am the virus.

This virus will, as it must since we haven’t bothered to find cures for these kinds of things, run it’s course and pass into history. It remains to see what kind of cruise industry survives the exaggerated  negative publicity. It is clear to me that in the short run my income and that of travel agents and travel suppliers have taken a serious hit. It is also clear that if the media and the government continue down the quarantine road those losses will become catastrophic.