Cruise Insurance

[macruisefan]

[quote name='Georgeny']In over 50 cruises only used insurance once to cover relatively minor lancing procedure and followup yet charges were equal to two cruise insurance charges. Reimburse was made promptly by travel insurance Access America, now Alianze.


George in NY[/QUOTE]

I'm glad it worked out. Now, not to make anyone think I am saying they are wrong for taking it, but allow me to share how I struggle with this personally.

Fifty purchases to be reimbursed/protected against a charge equal to two purchases is not a great return. Of course the greater concern is the major charge, say $50,000-100,000 for a major event. And while I weigh the concern about that, I also believe, as the numbers confirm, that the likelihood of this is much smaller (after all, a lot more people go to the infirmary on board for something minor, than those who get medflights off this ship!).

So, the real debate for me, as with any investment is what is the risk of loss? In this case, what is the risk of losing $50,000- $100,000 on a major event? And the "return" in this case is the several hundred dollars that aren't spent on cruise insurance several times a year, and therefore in my pocket. Just like any investment, there is a potential for loss.

I know there are those who will think that this is summarily irresponsible. And that's why it's great that they can choose to buy insurance. But I have made the personal decision that if, heaven forbid, something that catastrophic happened, and I had to liquidate $50,000 - $100,000 in assets (be it other investements, cash, etc...), while it would no doubt hurt, I would not be financially ruined.

Perhaps when I am older (39 now), and frankly speaking, the relative risk of illness increases, I will see it as a more sound strategy.

Again, I am in NO WAY saying anyone shouldn't buy insurance. I am just sharing my perspective with regards to how I make the determination. I am trying to do it in a respectful fashion, and if I have somehow offended anyone, that was not my intention.

[Giorgi-one]

[quote name='macruisefan']I'm glad it worked out. Now, not to make anyone think I am saying they are wrong for taking it, but allow me to share how I struggle with this personally.

Fifty purchases to be reimbursed/protected against a charge equal to two purchases is not a great return. Of course the greater concern is the major charge, say $50,000-100,000 for a major event. And while I weigh the concern about that, I also believe, as the numbers confirm, that the likelihood of this is much smaller (after all, a lot more people go to the infirmary on board for something minor, than those who get medflights off this ship!).

So, the real debate for me, as with any investment is what is the risk of loss? In this case, what is the risk of losing $50,000- $100,000 on a major event? And the "return" in this case is the several hundred dollars that aren't spent on cruise insurance several times a year, and therefore in my pocket. Just like any investment, there is a potential for loss.

I know there are those who will think that this is summarily irresponsible. And that's why it's great that they can choose to buy insurance. But I have made the personal decision that if, heaven forbid, something that catastrophic happened, and I had to liquidate $50,000 - $100,000 in assets (be it other investements, cash, etc...), while it would no doubt hurt, I would not be financially ruined.

Perhaps when I am older (39 now), and frankly speaking, the relative risk of illness increases, I will see it as a more sound strategy.

Again, I am in NO WAY saying anyone shouldn't buy insurance. I am just sharing my perspective with regards to how I make the determination. I am trying to do it in a respectful fashion, and if I have somehow offended anyone, that was not my intention.[/QUOTE]

No offense. Some people on these boards get all upset when discussions get a little hot. I do not. At 39 years old, the cost for a basic $1000 policy is about $45. This provides up to $1000 cancellation coverage, medical, evacuation, lost luggage and flight delay/cancellation. Remember that insurance is something you buy but DO NOT want to use. Think life insurance!

[dwjoe]

Macruisefan, that is a rational way of looking at an insurance purchase.

IMO, it's the major, catastrophic loss, that is most important to insure against. What qualifies as "major" will vary from person to person depending on their financial situation as well as their comfort level. But it's worth pointing out - as you have done - that the more you can afford to self-insure, the cheaper your insurance costs will be over the long term.

[mein18]

[quote name='macruisefan']I'm glad it worked out. Now, not to make anyone think I am saying they are wrong for taking it, but allow me to share how I struggle with this personally.

Fifty purchases to be reimbursed/protected against a charge equal to two purchases is not a great return. Of course the greater concern is the major charge, say $50,000-100,000 for a major event. And while I weigh the concern about that, I also believe, as the numbers confirm, that the likelihood of this is much smaller (after all, a lot more people go to the infirmary on board for something minor, than those who get medflights off this ship!).

So, the real debate for me, as with any investment is what is the risk of loss? In this case, what is the risk of losing $50,000- $100,000 on a major event? And the "return" in this case is the several hundred dollars that aren't spent on cruise insurance several times a year, and therefore in my pocket. Just like any investment, there is a potential for loss.

I know there are those who will think that this is summarily irresponsible. And that's why it's great that they can choose to buy insurance. But I have made the personal decision that if, heaven forbid, something that catastrophic happened, [COLOR="Red"][B]and I had to liquidate $50,000 - $100,000 in assets (be it other investements, cash, etc...), while it would no doubt hurt, I would not be financially ruined[/B][/COLOR].

Perhaps when I am older (39 now), and frankly speaking, the relative risk of illness increases, I will see it as a more sound strategy.

Again, I am in NO WAY saying anyone shouldn't buy insurance. I am just sharing my perspective with regards to how I make the determination. I am trying to do it in a respectful fashion, and if I have somehow offended anyone, that was not my intention.[/QUOTE]

Thank you for clarifying your personal situation/wealth as that makes your posts make some sense. What you practice is know as "self-insuring". I can be safe in assuming that most posters here would not have the ability to self-insure and have $50k to $100k of expendable cash or liquid investments laying around. Your opinion is valued but you should have noted in your original post the caveat that $50k to $100k loss to you is of no concern so that no unfortunate retired individual on SS and eating at their hard earned 401k or pension takes the advice if they are in fear of a medical need while traveling and can not afford to self-insure themselves.

The OP would not have raised the question if the risk of losing tens of thousands was not a concern to him/her.

Now that your very fortunate situation is very clear, let's get back to the original purpose of this forum. Nearing retirement, we are interested in those who can give the positives and negatives of travel insurance for those who can not self-insure.

What coverage do you take?
What coverage do you avoid?
By what means do you purchase?
Do you purchase as soon as you book the cruise?
Do you have any experiences with claims? (I realize specific carriers/companies are not supposed to be mentioned)

[dwjoe]

[quote name='mein18']Do you purchase as soon as you book the cruise?
Do you have any experiences with claims? (I realize specific carriers/companies are not supposed to be mentioned)[/quote]
A few ideas...

If you take insurance within a short period after booking the cruise (say 14 days) you can usually get coverage for pre-existing medical conditions.

Finding reviews/experience on claims can be difficult. Insuremytrip.com has reviews, but most are from people who never had to file a claim. If memory serves, there are ratings services for insurance companies e.g. AM Best. But those may be general and not specific to travel claims.

[macruisefan]

[quote name='mein18']Your opinion is valued but you should have noted in your original post the caveat that $50k to $100k loss to you is of no concern[/QUOTE]

Just to be clear, I am NOT in a position where a $50k-$100k loss would be of "no concern". It would hurt. A LOT! However, I wouldn't end up bankrupt.

[Giorgi-one]

[quote name='mein18']Thank you for clarifying your personal situation/wealth as that makes your posts make some sense. What you practice is know as "self-insuring". I can be safe in assuming that most posters here would not have the ability to self-insure and have $50k to $100k of expendable cash or liquid investments laying around. Your opinion is valued but you should have noted in your original post the caveat that $50k to $100k loss to you is of no concern so that no unfortunate retired individual on SS and eating at their hard earned 401k or pension takes the advice if they are in fear of a medical need while traveling and can not afford to self-insure themselves.

The OP would not have raised the question if the risk of losing tens of thousands was not a concern to him/her.

Now that your very fortunate situation is very clear, let's get back to the original purpose of this forum. Nearing retirement, we are interested in those who can give the positives and negatives of travel insurance for those who can not self-insure.

What coverage do you take?
What coverage do you avoid?
By what means do you purchase?
Do you purchase as soon as you book the cruise?
Do you have any experiences with claims? (I realize specific carriers/companies are not supposed to be mentioned)[/QUOTE]

I always purchase a package plan which includes cancellation, medical, evacuation, lost baggage, flight delays etc. I get at least $50,000 medical coverage. The remainder of the coverage amounts will be substantial with $50,000 medical. You can save some money by opting for $25,000 medical coverage which is probably OK assuming you have your own medical coverage which will eventually pay the bills. Remember that most travel insurance is secondary insurance which me means it pays, up to policy limits, after your own insurance pays. I essentially self insure cancellation and purchase a policy for $1000 trip cost which gives me all the other coverages I want. I do not have any preexisting conditions so I do not worry about that. If you need insurance for preexisting conditions, you need to follow the requirements specified by each insurance company. In general you need you insure ALL NONREFUNDABLE COSTS, purchase insurance within 10 days of INITIAL DEPOSIT and be able travel on the day you purchase the insurance. If you add additional nonrefundable costs (like airfare which is considered nonrefundable unless you purchase a refundable ticket), you can add them to the policy within the specified time period. DO NOT PINCH PENNIES. There was the case of a woman who purchased $4000 policy for a trip which costs $4001. Insurance company refused to pay. I always purchase online but you can also do it over the phone. Always read the policy first and get written confirmation for any special situations for which you get clarification from the insurance company. You can go to insuremytrip.com to compare prices and coverage from different companies. Hope this helps.

[mein18]

[quote name='Giorgi-one']I always purchase a package plan which includes cancellation, medical, evacuation, lost baggage, flight delays etc. I get at least $50,000 medical coverage. The remainder of the coverage amounts will be substantial with $50,000 medical. You can save some money by opting for $25,000 medical coverage which is probably OK assuming you have your own medical coverage which will eventually pay the bills. Remember that most travel insurance is secondary insurance which me means it pays, up to policy limits, after your own insurance pays. I essentially self insure cancellation and purchase a policy for $1000 trip cost which gives me all the other coverages I want. I do not have any preexisting conditions so I do not worry about that. If you need insurance for preexisting conditions, you need to follow the requirements specified by each insurance company. In general you need you insure ALL NONREFUNDABLE COSTS, purchase insurance within 10 days of INITIAL DEPOSIT and be able travel on the day you purchase the insurance. If you add additional nonrefundable costs (like airfare which is considered nonrefundable unless you purchase a refundable ticket), you can add them to the policy within the specified time period. DO NOT PINCH PENNIES. There was the case of a woman who purchased $4000 policy for a trip which costs $4001. Insurance company refused to pay. I always purchase online but you can also do it over the phone. Always read the policy first and get written confirmation for any special situations for which you get clarification from the insurance company. You can go to insuremytrip.com to compare prices and coverage from different companies. Hope this helps.[/QUOTE]

Thank you for the detailed explanation. Are you saying that even if your trip costs $5,000, you only enter $1,000 when the cost is asked which negates cancellation coverage but still gives you all the necessary medical coverage?

[Giorgi-one]

[quote name='mein18']Thank you for the detailed explanation. Are you saying that even if your trip costs $5,000, you only enter $1,000 when the cost is asked which negates cancellation coverage but still gives you all the necessary medical coverage?[/QUOTE]

Yes but you still get $1000 cancellation coverage. All the other coverages are identical. I am guessing the reason is that most claims are for cancellation so the insurance company charges accordingly for this coverage. For example for Alianz Insurance company, the deluxe package (50,000 medical) is $124 for $1000 trip cost and $472 for $5000 trip cost. Both policies would have identical coverage for all other items. This is for a 10 day Caribbean trip for two adults 60 years old. Just to give you an idea.

[Giorgi-one]

But you would not have coverage for previously existing medical conditions since you did not insure the entire nonrefundable cost of the trip. By the way, you can purchase insurance up to 24 hours before your trip if you are not concerned with preexisting conditions. If you purchase earlier, they will mail you the policy. It is always sent via email as soon as you purchase. I do not print the entire policy. I just take a copy of the declarations page with me and the insurance card.

[mein18]

[quote name='Giorgi-one']Yes but you still get $1000 cancellation coverage. All the other coverages are identical. I am guessing the reason is that most claims are for cancellation so the insurance company charges accordingly for this coverage. For example for Alianz Insurance company, the deluxe package (50,000 medical) is $124 for $1000 trip cost and $472 for $5000 trip cost. Both policies would have identical coverage for all other items. This is for a 10 day Caribbean trip for two adults 60 years old. Just to give you an idea.[/QUOTE]

I see that there are also "medical only" policies that come in relatively inexpensive with what appears to be good medical and medevac coverage which supports your theory of most of the cost being the cancellation insurance.

[Giorgi-one]

[quote name='mein18']I see that there are also "medical only" policies that come in relatively inexpensive with what appears to be good medical and medevac coverage which supports your theory of most of the cost being the cancellation insurance.[/QUOTE]

I have to look into that. We recently cruises out of Bayonne, NJ which does not require us to fly so most of the other coverages are not really necessary! In the past we always flew so I wanted to coverages for cancelled flights, lost or delayed baggage, etc.

[dwjoe]

[quote name='Giorgi-one']Yes but you still get $1000 cancellation coverage. All the other coverages are identical. I am guessing the reason is that most claims are for cancellation so the insurance company charges accordingly for this coverage. For example for Alianz Insurance company, the deluxe package (50,000 medical) is $124 for $1000 trip cost and $472 for $5000 trip cost. Both policies would have identical coverage for all other items. This is for a 10 day Caribbean trip for two adults 60 years old. Just to give you an idea.[/quote]
I think this is a good example of how expensive cancelation coverage is relative to medical/evac coverage.

[Giorgi-one]

Don't disregard baggage coverage even if you do not fly. Cruise lines do occasionally lose baggage and there was an incident where a fully loaded baggage pallet wound up in the water during loading. On another topic, I think that some cruise lines still offer a service where they pick up your bags at the airport (instead of you getting them) and transport them directly to the ship. Personally, I would never consider this option since you have no way of knowing if your bags were delivered by the airline until they do not arrive in your cabin. Since I NEVER fly on embarkation day, this is not an issue for me.

[mein18]

[quote name='Giorgi-one']Don't disregard baggage coverage even if you do not fly. Cruise lines do occasionally lose baggage and there was an incident where a fully loaded baggage pallet wound up in the water during loading. On another topic, I think that some cruise lines still offer a service where they pick up your bags at the airport (instead of you getting them) and transport them directly to the ship. Personally, I would never consider this option since you have no way of knowing if your bags were delivered by the airline until they do not arrive in your cabin. Since I NEVER fly on embarkation day, this is not an issue for me.[/QUOTE]

Ditto here. Would not fly on embarkation day nor would we ever use the airport to stateroom baggage service but a good point made on the coverage for those who do.

[Giorgi-one]

[quote name='mein18']Ditto here. Would not fly on embarkation day nor would we ever use the airport to stateroom baggage service but a good point made on the coverage for those who do.[/QUOTE]

Not flying on embarkation day really avoids two potential problems. Obvious one is delayed or cancelled flights but lost or delayed luggage is probably occurs more often. It happened to us on one of our early cruises when I did not understand the problems. We were flying on embarkation day to San Juan. We also made the mistake of purchasing cruise air which gave us a flight from Phila to NYC and then to San Juan instead of direct flight from Phila. First flight from Phila was cancelled and we barely made the NYC to San Juan flight. Unfortunaely, my wife's luggage did not make the flight . She basically had no clothes until bags caught up with cruise four days later. That was last time we flew on embarkation day. I also avoid çonnecting flights to the embarkation port since this increases the possibility of lost or delayed luggage. Fortunately, we are usually flying Phila to Florida and nonstop flights are not a problem.

[mein18]

[quote name='Giorgi-one']Not flying on embarkation day really avoids two potential problems. Obvious one is delayed or cancelled flights but lost or delayed luggage is probably occurs more often. It happened to us on one of our early cruises when I did not understand the problems. We were flying on embarkation day to San Juan. We also made the mistake of purchasing cruise air which gave us a flight from Phila to NYC and then to San Juan instead of direct flight from Phila. First flight from Phila was cancelled and we barely made the NYC to San Juan flight. Unfortunaely, my wife's luggage did not make the flight . She basically had no clothes until bags caught up with cruise four days later. That was last time we flew on embarkation day. I also avoid çonnecting flights to the embarkation port since this increases the possibility of lost or delayed luggage. Fortunately, we are usually flying Phila to Florida and nonstop flights are not a problem.[/QUOTE]

We also fly out of Phila and the only time we used cruise air (also to San Juan) we barely made connecting flight in DC but on the return missed our connection in Memphis. Now we do direct flights only also whether it be Florida or San Juan. Last year the Bayonne departure sure was a spoiler not having to fly anywhere.

In any case, baggage problems under any circumstances could be devastating. I know it would be considerably more expensive but would be nice to have a checklist of what coverage you want and just check the boxes as you go down the list and then have a total calculated at the end. Many times you end up paying for coverage that you do not need just to get the ones that you do need.

[Giorgi-one]

[quote name='mein18']We also fly out of Phila and the only time we used cruise air (also to San Juan) we barely made connecting flight in DC but on the return missed our connection in Memphis. Now we do direct flights only also whether it be Florida or San Juan. Last year the Bayonne departure sure was a spoiler not having to fly anywhere.

In any case, baggage problems under any circumstances could be devastating. I know it would be considerably more expensive but would be nice to have a checklist of what coverage you want and just check the boxes as you go down the list and then have a total calculated at the end. Many times you end up paying for coverage that you do not need just to get the ones that you do need.[/QUOTE]

Actually, you can do that to some extent on most package policies. You can choose the amount of medical coverage, add life insurance or collision insurance, etc. As I said, I usually just purchase a $1000 policy which gives me all the other coverages for about $100. Can't complain too much about this price!

[Giorgi-one]

[quote name='mein18']We also fly out of Phila and the only time we used cruise air (also to San Juan) we barely made connecting flight in DC but on the return missed our connection in Memphis. Now we do direct flights only also whether it be Florida or San Juan. Last year the Bayonne departure sure was a spoiler not having to fly anywhere.

In any case, baggage problems under any circumstances could be devastating. I know it would be considerably more expensive but would be nice to have a checklist of what coverage you want and just check the boxes as you go down the list and then have a total calculated at the end. Many times you end up paying for coverage that you do not need just to get the ones that you do need.[/QUOTE]

Where do you live? I usually fly US Airways but try to get Southwest to Florida since bags fly free. Got round trip nonstop flights last January for $186 per person. Still looking to book for this January. Best I can do now on Southwest in about $270 per person which compares to about $150 on US Air when I add in cost of 2 bags each. Still not a bad price. I probably should book soon before price goes up.

[mein18]

[quote name='Giorgi-one']Where do you live? I usually fly US Airways but try to get Southwest to Florida since bags fly free. Got round trip nonstop flights last January for $186 per person. Still looking to book for this January. Best I can do now on Southwest in about $270 per person which compares to about $150 on US Air when I add in cost of 2 bags each. Still not a bad price. I probably should book soon before price goes up.[/QUOTE]

We are in central MontCo. Usually fly US Air when possible just due to having miles to use. Got tired of the Southwest ordeals as i guess many have causing SW to downsize their Phila operations.

[Giorgi-one]

[quote name='mein18']We are in central MontCo. Usually fly US Air when possible just due to having miles to use. Got tired of the Southwest ordeals as i guess many have causing SW to downsize their Phila operations.[/QUOTE]

We live in South Jersey. I have miles on US Air but don't want to use 80,000 miles for a $200 flight to Florida when I still have to pay for bags. My guess is that you travel on business and get lots of miles. I am retired so only flights we take are for cruises and to visit my daughter in Iowa where I am now. Really no hassle on Southwest. Just pay the $10 for automatic early check-in and always get the A seating. Got great deal flying out here last Friday on US Air. When I went to check in, I got First class upgrades for $79 per person. This included free bags and combined with the drinks we had, I figured I almost broke even.