Why travel insurance is a must for seniors

Why travel insurance is a must for seniors

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Travel insurance can be a huge help to anyone, especially older travelers who may have a greater risk of health issues or unexpected travel disruptions and greater concerns about protecting their finances.

CNBC Select explores why travel insurance is so important for seniors and the policies to consider if you’re over 65.

What seniors need to know about travel insurance

Emergency medical coverage

Whether you have private insurance or Medicare, your U.S. health care plan probably isn’t valid abroad. That’s where your travel insurance policy’s medical coverage is invaluable. It will cover the cost of doctor’s visits, hospital stays, prescriptions and more.

If you need to be flown somewhere for treatment or get back home, a good policy will also cover the cost of medical evacuation.

We recommend buying a policy with at least $100,000 in emergency medical coverage and $250,0000 in evacuation coverage. If you’re visiting far-flung locales or are particularly concerned about your health, however, look at policies with higher limits.

Travel Insured International has some of the highest limits we’ve seen. Plans cover up to $250,000 in emergency medical expenses and $1 million for evacuation or repatriation.

C&F Travel Insured International Travel Insurance

  • Policy highlights

    Single-trip and multi-trip/annual policies and cruise insurance. Add-ons include Cancel for Any Reason coverage and a travel inconvenience benefit

  • Cancel For Any Reason coverage

    Add-on to Worldwide Trip Protector Deluxe or Platinum plan that reimburses 75% of nonrefundable costs when purchased within 21 days of initial trip payment

  • Pre-existing condition waiver

    Available if policy is purchased within 21 days of initial trip deposit.

Pros

  • Lower rates than other top providers
  • Platinum plan comes with $500,000 in medical coverage
  • Add-ons include coverage for event tickets and electronics
  • Job loss is an approved reason for trip cancellation

Cons

  • Basic Essentials plan lacks much customization
  • Limited options in Montana, New York and Washington state

Pre-existing conditions

A standard travel insurance policy won’t cover pre-existing conditions if they force you to change your plans or seek medical treatment.

A pre-existing condition is any injury, illness or chronic condition that requires treatment or medication, including diabetes, arthritis, cardiac disease or COPD. If you file a claim, your provider will typically look back 60 to 180 days before you enrolled to see if there were any changes in your medical status.

You can get a pre-existing condition waiver, however, which prevents your insurer from reviewing your records when processing a claim. Many companies offer waivers but require travelers to be medically able to travel and to buy their policy within two weeks of booking.

We like Nationwide for its more generous 21-day window in which you can buy coverage and still receive a waiver.

Nationwide Travel Insurance

  • Policy highlights

    Single- and multi-trip plans and cruise insurance, plus add-ons like CFAR and rental car coverage.

  • Cancel For Any Reason coverage

    Add-on to Prime plan that reimburses 75% of nonrefundable trip costs if purchased within 21 days of booking (Not available in New York or Washington state)

  • Pre-existing condition waiver

    Available with single-trip plan purchased within 20 days of initial trip deposit (14 days for cruise insurance)

Travel disruptions

Even if you don’t have a medical issue on your trip, you might have to cancel your plans because of a health condition, death in the family or other emergency.

Trip cancellation and interruption coverage are among the best reasons to get travel insurance. A comprehensive plan will reimburse up to 100% of your nonrefundable costs if you need to cancel and up to 150% if you need to cut your trip short.

Read your policy’s terms to see what events are covered, but common scenarios include:

If you’re concerned about your situation being covered or don’t want to have to submit proof, a Cancel For Any Reason (CFAR) policy will refund a portion of your expenses, regardless of why you scraped your plans.

Most CFAR plans limit you to 50% to 75% of your nonrefundable costs, but Allianz reimburses 80% of expenses.

Allianz Travel Insurance

  • Policy highlights

    Single-trip and multi-trip/annual policies and a rental car plan. OneTrip Prime and Premier plans include coverage for one child 17 or younger when accompanying a covered adult.

  • Cancel For Any Reason coverage

    Reimburses 80% of nonrefundable trip costs if you cancel at least 48 hours before departure.

  • Pre-existing condition waiver

    Included if policy is purchased within 14 days of initial deposit

Cruise insurance

Cruises are particularly popular with retirees, who enjoy the convenience, entertainment and relaxing atmosphere, and have the funds and free time to devote to an extended excursion.

Viking, Holland America and Cunard all market cruises aimed at older travelers.

Cruises come with specific risks, though, including the ship breaking down or you missing your connection. We love Seven Corners‘ cruise insurance policies, which include up to $250 a day for missed connections, $5,000 for an itinerary change and $250 each time the ship is disabled or misses a port of call.

Plus, Seven Corners gives you 20 days to buy a policy with a pre-existing condition waiver and covers travelers up to age 99.

Seven Corners Travel Insurance

  • Cost

    The best way to estimate your costs is to request a quote

  • Policy highlights

    Policies provide missed and delayed tour/cruise connection coverage. Cancel for any reason coverage and pre-existing conditions waiver are also available if you buy your plan within the specified time. ***CFAR and IFAR are subject to certain eligibility criteria and are not available in all states

  • 24/7 assistance available

Age restrictions

Many travel insurance companies put age restrictions on their policies, limiting coverage to travelers under 79 or even 65. The cost of a policy can also be much more expensive for older travelers.

Seven Corners will approve coverage for travelers up to age 99 and Faye and Travelex don’t have any age restrictions at all.

Faye Travel Insurance

  • Policy highlights

    One single-trip plan with optional add-ons for pet care, adventure sports and damage to vacation rentals

  • Cancel For Any Reason coverage

    Up to 75% reimbursement of nonrefundable trip costs if purchased within 14 days of initial trip deposit.

  • Pre-existing condition waiver

    Available if policy is purchased within 14 days of initial trip deposit.

Travelex Insurance Services

  • Policy highlights

    Essential, Advantage and Ultimate policies plus last-minute Travel Med Go plan and standalone plans for emergency medical and flight coverage. Upgrades include rental car, pet and adventure activities coverage

  • Cancel For Any Reason coverage

    Upgrade with Ultimate plan covering 75% of nonrefundable trip costs if purchased within 21 days of initial deposit and 31 days of departure.

  • Pre-existing condition waiver

    Included with Ultimate plan if purchased within 21 days of initial deposit

How much is travel insurance for seniors?

Travel insurance averages between 4% and 10% of your total nonrefundable trip expenses. Because of increased risk, seniors pay on the higher end of that range.

CNBC Select gathered rate quotes for a 65-year-old traveler and a 30-year-old traveler taking the same one-week $3,000 excursion to London and looking for $250,000 in medical coverage and $1 million in evacuation coverage. While the 30-year-old’s rate was about 4.4% of their nonrefundable trip expenses, the 65-year-old was quoted a rate of about 7.3%.

There can be a significant difference in price among carriers, so using a travel insurance marketplace like Squaremouth can help you compare rates in minutes.

SquareMouth Travel Insurance Marketplace

  • Policy highlights

    SquareMouth is a travel insurance marketplace that allows you can compare top-rated providers, including Berkshire Hathaway, Nationwide, Seven Corners and Tin Leg.

  • 24/7 assistance available

Pros

  • Includes more than 30 travel insurance companies
  • You can compare providers side-by-side on the website
  • SquareMouth doesn’t add additional markups or fees
  • Carriers that don’t adequately address a customer complaint are removed

Cons

  • Doesn’t provide travel insurance policies of its own

The best travel insurance for seniors

Travel insurance for seniors FAQs

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Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every travel insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of travel insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.





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