Travel Insurance

It's Travel Season again.  Are you travelling outside of Ontario?  The Ontario government will no longer be covering any out of country medical emergency expenses (as of January 1, 2020) and does not cover all expenses in other provinces.  

Many group plans include Out of Province Medical Emergency coverage as do some credit cards.  However, some of these coverages may be for a limited time, require that you purchase the tickets with the card, or no longer be valid after age 65.  If you are depending on this type of coverage, check your policy booklets.

It’s up to you to ensure that any travel insurance you have includes coverage for pre-existing medications and pre-existing medical conditions. Most insurance policies consider a change in medication (that’s decreases as well as increases) to be a change in the condition.  Most policies require that you are stable for at least 90 days (and the length of time can be longer at older ages) and that your doctor said that it was okay for you to travel.

If you plan to leave the country more than twice in a year, check to see if an annual (or multi-trip) plan makes more sense.  FYI – These plans cover you for an unlimited number of trips, based on the number of days you purchase, as long as you spend at least one night in Ontario between trips.

There are also plans that will cover all your medical conditions, even those that are not stable.

Give me a call or drop me an email and we can discuss your specific requirements.

Do you need travel insurance?

We all know that medical expenses in the USA are expensive, but they are in other parts of the world as well.  Here is an example of costs in Mexico due to appendicitis.  14-year-old Male: Abdominal Pain Led to Appendicitis in Mexico Tomas was in Mexico during spring break. After a few days, he started having severe abdominal pain and saw the hotel doctor. He was diagnosed with appendicitis and sent to the hospital by ambulance. Tomas was in the hospital for two days before he was released with various prescriptions and caught a new flight home. Hotel doctor fees ......................................$950.50 Ambulance fees ........................................$1,200.00 Hospital fees .............................................$22,530.47 Doctors' fees .............................................$7,165.00 Prescriptions .............................................$47.11 Provincial medical ....................................- $330.16 Amount paid by TuGo (the insurance company)  ......$31,562.92   If you have a group plan, Emergency Medical coverage may be included in your plan.

New Year’s Financial Resolutions

Every year, I make resolutions about the areas of my life that I would like to improve. The changes often never even get started and rarely make it to December 31.  I’d like to help you be successful if your goals are financial.

In a recent Sun Life Financial survey, 66% of Canadians said their debt level was the same or worse than a year ago.

Step 1 – Make a Goal.

It doesn’t matter if it’s saving 10% of your gross (or net) income, saving $1000 so that next Christmas the expenses do not need to go on your credit card (due to lack of cash flow), paying off your credit card every month, putting aside 3 months income for a rainy day, or saving money for a special vacation.  All that matters is that it’s your goal and that it means something to you.

Step 2 – Determine your Cash Flow

You cannot save even $50 each month, unless you know where that money is going to come from.  So this step involves reviewing your income and expenses.  Most experts suggest that 3 months is a good snapshot.  Note: If you pay for items such as insurance on an annual basis, you need to average those costs and add them to your 90 day expenses. 

Usually, a good start for this review is by looking through your bank and credit card statements.  Remember – all you bank statement says for cash is that you withdrew it, it doesn’t tell you whether you spent that money on giving your children money for school pizza lunches or on $5 Starbuck coffees.

If you would like a spreadsheet to use for this exercise, let me know and I can supply you with one.  Alternatively check out the one available on the Hello Life website. 

Step 3 – Review your Income and Expenses

So now that you know where your money comes from and where you spend it – you need to determine what you can adjust.  Is it exchanging Starbuck coffees for ones you brew at home or buy at Tim Hortons? Is it decreasing your clothing or eating in restaurants budget?  Does it require an entire review of all of your spending habits?

If you need help with this step, contact me. I can either help you or send you to a professional who can.

Step 4 – Implementation / Action

Money that doesn’t “exist” is easy to save.  If your goal is to pay down credit card debt, you can set up an automatic payment from your bank account to the credit card to occur as soon as your paycheck lands in your bank account.  If your goal is savings, I can help you by setting up an account for the savings and arrange the same automatic transfer.

As we all know, nothing actually happens unless you have an action plan.  Let’s work together to implement your financial goals.

The need for Travel insurance

A study released by the Bank of Montreal (BMO) on March 24, 2015 examines why and how Canadians use travel insurance.

One of the findings of the study is that 36% of Canadians do end up requiring medical attention while they are on vacation, and that many have had to file a claim when they returned home in order to recover out-of-pocket expenses. Among those with travel insurance, 76% described the claims process as "easy" and none of those surveyed had their claims rejected. BMO says that 74% of those who had filed claims received the full balance of what was owed and 26% were partially reimbursed.

 

If you leave Ontario, do you ensure that you have Out of Province Medical Insurance? It can be part of your benefit package or on your "gold" credit card or purchased separately through your travel agent or a life insurance agent.  

Have you verified what it covers? For example some group policies will only cover you for travel in Canada. Some credit card policies will only cover you if you are under 65 and purchased the travel package using that card.

The best way to ensure that your claim is paid for is to contact the insurance company at the number on your wallet card as soon as possible. Not only will you know right away what is covered, they will often guide you through getting the medical assistance that you need.

Travel Insurance

The following article was published in the April 2013 issue of The Insurance & Investment Journal.  It discusses some of the things that could go wrong when you travel out of your home province and what you need to do to protect yourself.

Travel Insurance - do you need it?

Vacation season is fast approaching and with it, comes the question – “Do I need to purchase travel insurance?” The simple answer is if you are travelling outside of Ontario, OHIP may not provide adequate coverage. For example, Cuba now requires proof of private Emergency Medical Insurance coverage before you can enter the country.

Travel insurance comes two ways – Emergency Medical only or Complete coverage that includes coverage if your bags are lost, you need to cancel the trip due to a medical emergency, the plane is delayed and you miss your connection to the cruise ship, as well as the Emergency Medical coverage.

If you are enrolled in a group benefits plan, you may have emergency medical coverage already – check your booklet. Similarly, it may be included on your Premium Credit Card (normally only if you are under age 65).

Should you need to purchase coverage for your trip, make sure to answer all medical questions completely. Most individual plans will not cover pre-existing conditions if they are not stable prior to your trip and may not provide any coverage (even unrelated) if you do not answer all questions fully.

So, if you’re travelling outside of Ontario this summer, talk to a lisenced insurance gent prior to your trip.

For more information, to help you decide if you need to buy Emergency medical travel insurance – check out these articles in the Toronto Star:

• Getting Sick in the States
• Protect yourself with a travel health insurance policy

Updates to Group Insurance

Group Insurance Plans

2012 has seen a number of changes to your group insurance plan that you should be aware of.

Taxation

Disability premiums have been an employee paid benefit (or a taxable benefit if paid by the employer) for many years.  In 2012, the CRA changed the rules for Life and AD & D (Accidental Death and Dismemberment) benefits.  They are also now a taxable benefit if paid by the employer. However, the health and dental premiums still are not a taxable benefit.  That is why if the employee and employer share the cost of the benefit, the employee pays the life, AD & D and disability premiums and the employer pays a larger percentage of the health and dental premiums. 

For more information  check out this publication on the CRA web site on taxable benefits.  

If you are an employer, bookkeeper or accountant pages 40 and 41 includes a table that summarized all the information, including which benefits you need to deduct CPP and EI or include the GHT / HST and what code to use on any T4s that you need to issue.

Travel Insurance

In December 2012, Manulife and Desjardin clarified  the rules for out of province travel insurance and many of the other insurance companies will be making similar clarifications to their plans in the future.  The issue is pre-existing conditions and whether they are stable.

Individual travel plans have a clause that states that pre-existing conditions are covered if they are stable for 90 to 180 days (depending on the age of the client).  Snowbirds are aware of this clause and see their doctors as soon as they arrive back home, so should there be a change in their medications, they qualify for travel insurance the next winter. 

The insurance companies consider a condition to be not stable should there be any change to the medications you use or should you visit the doctor because of an issue related to that condition.  Note – you would be covered for anything not related to that condition.

Until recently, if you were on a group plan that had travel insurance coverage, you were exempt from that stability – but that is changing.  If you plan to travel and have had any changes to your medications, you should check witn your insurance company to see if you are covered.

The Toronto Star ran an article on travel insurance just before Christmas.  In November 2012, they also ran an article on 10 things you need to know about travel insurance that you may want to read as well.

Web Sites to assist in your vacation plans

July is here and finally, it’s summer and we all switch into “Vacation mode” or at least “I’d like to be in Vacation Mode”.

Here are some on line resources to help make your planning easier and to save you some money. I’ve divided them into categories and included some pre-travel tips at the end.

The Fine Print
This is just a list of sites. I have not used most of them and do not warranty or recommend the services that they provide. Note – the fine print on this list is upfront and in large print – just like the services I provide.

If you plan to stay in Ontario
Here are some web sites to get great bargains:
• www.AttractionsOntario.ca - this site includes discount coupons for a range of Toronto and Ontario attractions
• www.bargainmoose.ca/ - Bargain Moose finds you the best deals in Canada, and keeps you up-to-date with Canadian coupon codes, freebies and hot deals. You can even sign up to get their newsletter.
• www.groupon.com/toronto - Get 50 to 90 percent off the best stuff your city has to offer. This link is for Toronto, but many other cities are available.
• www.shoestringshopping.com/ - Find bargains and warehouse sales in the Greater Toronto Area
• www.menupalace.com/menupalace/ - Restaurants, MenuPalace.com is North America's ultimate Restaurant dining guide. It includes discount coupons.

If you’re looking for things to do, try these sites:

• www.seeTorontoNow.com – for a list of what’s on in the city.
• You can also try the event listing in Now magazine – www.NowToronto.com for what’s coming up in the next week
• if you’re looking to go to the Stratford or Shaw festivals – their websites are:
o www.StratfordFestival.ca
o www.ShawFest.com
• If you prefer to check out the smaller summer theatre festivals – a listing can be found at www.TheatreOntario.org


Looking to Travel

Looking for web sites that offer good deals? How about checking the following:
• www.Expedia.ca
• www.PriceLine.com
• www.Hotwire.com

Looking just for a rental car – www.Breezenet.com
How about specials on air fares - www.MoMondo.com – a Danish site with low air fares

Some sites with Cruise specials include:
• www.TravelZoo.ca
• www.CruisesOnly.com
• www.VacationsToGo.com
• www.OnlineVacationCenter.com

Looking for places to stay?

• www.CasaCasa.org – links travelers looking for places to stay with people who have rooms to spare. It bills itself as a budget B&B
• www.Digsville.com – a home-swapping site
• www.HomeExchange.com – is 18 years old and assists people looking to swap homes. They have 36,000 homes worldwide
• www.affordabletravelclub.net – you must be at least 40 years of age, have a permanent residence, and be able to provide clean, comfortable, and private sleeping quarters and either full or continental breakfast for two or more guests.
• www.HotelsCombined.com - A site that scans the other web sites to find the best deal in hotels

Looking for a bike tour - www.BikeToursDirect.com

Looking for a guide abroad?
• www.Viamigo.com
• www.RentaLocalFriend.com

General Tips
Do you have Travel Insurance if you’re traveling out of Ontario? Give me a call and I can point you in the right direction. Note – most group plans include Emergency Medical Travel Insurance as one of the benefits.

If you are going on an extended trip – let your credit card company know. You also need to have a trusted friend or neighbor check your house or your home insurance policy may not be valid should something go wrong.

Finally, don’t forget about potential Roaming charges on your cell phone if you travel out of the province. Check with your service provider for your options.

Do you know of additional web sites? Let me know and I will add them to this list.