SILVER: Planning a summer getaway? Don’t forget travel insurance

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With summer fast approaching, many Canadians are eagerly planning vacations — from cross-country road trips to international adventures. While most travel plans focus on booking flights, hotels, and tours, one critical element is often overlooked: Travel insurance.

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Travel insurance provides vital financial protection, particularly when travelling abroad. Medical emergencies can lead to significant expenses, especially in countries like the United States, where healthcare costs can escalate quickly.

For example, treatment for a serious heart condition requiring surgery, such as a coronary artery bypass, can cost up to $448,000 in the U.S. Facing such substantial expenses without appropriate insurance can be financially devastating.

Many Canadians may already have travel insurance through their workplace benefits. Employer-provided coverage often includes more favourable terms, especially regarding pre-existing medical conditions. These policies typically feature a shorter “stability clause”— often 90 days, or in some cases, no stability requirement at all. In contrast, individually purchased travel insurance usually requires stability periods of approximately 180 days. This distinction is crucial, as recent changes in medication or treatments could render you ineligible under individual plans.

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It’s important to review the terms of your travel insurance policy carefully, particularly the stability clauses, exclusions, and coverage limits. Understanding these details ensures you’re properly protected and can avoid unexpected medical bills while abroad.

Proper preparation is key to enjoying a stress-free summer vacation. Ensuring your travel insurance meets your needs allows you to travel with confidence and peace of mind.

Trip cancellation insurance is nice to have, emergency medical coverage is essential

Trip cancellation insurance is another valuable component of travel insurance. It can reimburse you for prepaid, non-refundable expenses if you have to cancel your trip due to unforeseen events like illness, job loss, or family emergencies. It provides peace of mind, especially for costly trips or bookings made well in advance.

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However, while trip cancellation insurance is helpful, emergency medical travel insurance is indispensable. It covers the potentially catastrophic costs of medical emergencies while travelling abroad. Even if you opt out of cancellation coverage, never travel without emergency medical insurance. It’s not just smart—it’s essential.

— Michael Silver, B.Comm. (Hons), CFP, CHS, Managing Partner — W.P.G. The Wealth Planning Group, and a guest writer for the Winnipeg Sun.

Have thoughts on what’s going on in Winnipeg, Manitoba, Canada or across the world? Send us a letter to the editor at [email protected].

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