Travel Insurance Coverage Versus Exemptions

August 11, 2022

Travel Insurance Exemptions That Are Typically Overlooked

Travel insurance has grown to be a must-have product for those traveling internationally, but it doesn’t come without its faults. Many vacationers purchase travel insurance coverage blindly, thinking it is a solution for any complication they may experience during their trip. While multi-million-dollar travel insurance policies are great selling points for the insurance provider, many travel insurance exemptions can make those million-dollar policies totally irrelevant.

Travel insurance exemptions are an important element of your travel insurance policy, and without reading the fine print, you could be surprised at the costs you could incur. Take every step necessary to ensure that your insurance provider can help you travel safely wherever you are in the world.

Travel Insurance: Understanding the Impact of Exemptions on Your Coverage

The truth is that many travel insurance policies are intentionally complex and difficult to understand. Knowing exactly what would happen to you or a loved one during a serious medical emergency could be deliberately vague. It may be hard to determine if an insurer would fly you home just from reading the fine print of a policy; question the provider directly for more information.

Many travelers purchase policies that have millions of dollars of coverage, giving the impression that this policy could address absolutely anything during an emergency.

Millions of dollars in coverage is a good thing, but oftentimes it is on a reimbursement basis or comes with exemptions that could void a policy completely. Should you experience a traumatic injury or are a victim of violent assault, an insurer may not reimburse the costs you incurred should alcohol be involved or you were partaking in a high-risk activity. Every policy is unique, and the onus is on the traveler to purchase a product that speaks to the many risks that come with international travel.

Travel Insurance Exemptions Every Traveler Should Know

Some of the most common exemptions that can be found in traditional travel insurance policies include natural disasters such as hurricanes and tornadoes and political unrest, including acts of war. Many policies also state that under any circumstances, they will not cover the costs of emergency flights or transportation back to a hospital close to home. Many policies cover medical emergencies and hospitalization, but most insurers are not willing to pay for a specialized or air ambulance flight back home.

This can be especially problematic when quality care is limited in an exotic destination or a traveler’s coverage has run out; travelers will have to make their own arrangements to return home. The final bill could come at a massive cost, and some tourists might be surprised that their policies will not cover it. Emergency transportation, including air ambulance services, is simply unaffordable and leaves customers with a life-long debt that could be passed on to their children.

Every travel insurance policy is unique, and consumers need to read the fine print in order to gain an understanding of what exactly they are purchasing.

Travel Insurance Exemptions Tied to Pre-Existing Medical Conditions

Travel insurance for those 65 and older is especially complex, and multi-million-dollar policies often have seniors purchasing these products without fully understanding the exemptions in the fine print. Most policies include language that states that coverage can be voided if a client has a pre-existing medical condition.

The verbiage within a policy’s fine print should outline what is considered a pre-existing medical condition and what isn’t. However, the problem is that a policy’s fine print can be intentionally vague, encompassing a wide range of medical conditions. In the event a traveler makes a claim and attempts to get a reimbursement, the insurance provider will make every effort to research past medical history to learn more about their pre-existing conditions. Since many policies are on a reimbursement basis, should a claim be denied, the consumer must pay the full bill for the medical services used during their trip.

Address the Gaps of Traditional Travel Insurance with CAP Travel Medical and Security Assistance Plan

FocusPoint’s CAP Travel Assistance Plan is a great way to address many of the complications from the exemptions found within travel insurance. CAP travel specialists work in tandem with travelers to ensure their safe movements and respond to medical emergencies with fully-funded emergency transportation services.

When travel insurance providers are unwilling to pay for a flight back home, CAP can facilitate the flight for no additional cost. Consider adding the CAP Travel Medical and Security Assistance Plan as a supplemental product to existing travel insurance policies and ensure you are covered from the most common exemptions.

FocusPoint International’s CAP Travel Medical and Security Assistance Plan comes with a robust CAP Advantage mobile app that includes destination-based health, safety, and security intelligence, COVID-19-specific information, a one-touch assistance button, and much more.

The CAP Plan offers unlimited 24/7 advice for a long list of travel mishaps often overlooked by traditional travel insurance, including COVID quarantine cost coverage. It also provides a fully-funded response to incidents of riots, strikes, civil commotion, and natural disasters, with medical evacuation to a home hospital of choice, should you suffer from a medical mishap resulting in hospitalization.

Contact us directly to learn more about available offerings for North Americans traveling internationally.