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Serious question: Why does anyone buy trip insurance unless old or tight budget?

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I will admit that I made the title of this thread a bit provocative in order to get people talking.

 

However, I stand by my original assertions.

 

Someone pointed out here that travel agents selling trip insurance get huge commissions. There's a reason for that. It is a bad deal for the consumer.

 

BTW, when I asked, "Why does anyone get it", I wasn't asking for anecotes of how you ended up using it. Unless you saw those misfortunes in the future and bought the insurance for that reason, that isn't the reason you purchased the insurance.

 

If you want to purchase trip insurance, it's your money and you're welcome to do so.

 

I still assert that the coverage is not as good as you think, that there's a huge markup, and that some of the coverage is likely duplicated with benefits you already get from credit cards or some medical policies.

 

With that said, if you are buying the insurance to cover major medical expenses abroad, that is understandable.

 

If you are buying it so you can get your $4000 back when you somehow can't make your trip, you are throwing your money away, unless $4000 is life changing money to you.

 

Honestly I am surprised how many people here buy trip insurance. Does it really outnumber the people who don't?

 

I will never buy it, though I will consider some form of foreign medical insurance if I cruise/travel to third world countries, as that might be worth having. I've traveled before without it, but maybe that was a mistake.

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One of the benefits of trip insurance is that it normal provides medical coverage which by the way you can insure the trip for 0 and get the medical benefit coverage. And a medical issues can strike anyone no mater what their age and can be very costly.

 

Keith

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Unless you saw those misfortunes in the future and bought the insurance for that reason, that isn't the reason you purchased the insurance.

 

 

People buy insurance for the unforeseen events that happen- if I knew that I was going to have a medical emergency on a cruise I would stay home so I could let my regular doctor take care of me.

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After I book a cruise/vacation, the next call I make is to purchase trip insurance. I consider it part of my vacation expense. We can only travel at the most expensive times of the year. We have had to use it twice so far - once when my perfectly healthy then 18 year old dd had what the doctors on the ship (and in the hospital) thought was an appendicitis attack- she and I were off-loaded in Belize for 3 days, and once when I came down with noro the day before a cruise and had to cancel. DD's medical expenses (hospital, tests, flight back to U.S., hotel for an overnight stay in Florida, all food costs) were covered - way over $7,000. We got back every penny except for $5!! For $280 for a family of 4, (adults) it is well worth the peace of mind it brings, since we book at least 9-12 months out for a cruise, and 2 of our 4 have pre-existing conditions.

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We always buy travel insurance and have had to file claims three times in the past five years. Each time the claims were paid in full with no questions asked, by three different insurers - Travelex, Travelguard and CSA. I purchased all policies online through insuremytrip.com.

 

1. Nov. 2009: Family group of 12 on a Thanksgiving cruise aboard the Norwegian Jewel. My mother slipped and fell in the buffet, fracturing her pelvis. She had to be medically evacuated from Belize to Tampa. All arrangements for the ambulance in Belize, private medical jet, and ambulance in Tampa to the hospital were made by the insurer. The cost of the flight alone was $18,000. Our co-pay was zero.

 

2. August 2011: Family cruise for four on the Oasis of the Seas. Hurricane Irene was hitting our home state when we disembarked and all return flights were canceled. Insurance reimbursed me for the cost of a rental car, hotel and meals in Florida for four days until we could fly home.

 

3. Feb. 2012: Mom was booked on a five-night cruise on the Jewel of the Seas with her sister. She had a stroke ten days before the cruise and could not travel. Insurance reimbursed my mom and her sister for the cost of the cruise and airline tickets.

 

I wouldn't dream of traveling without insurance. It's the first thing I buy after I book a cruise, since most plans will waive pre-existing conditions if you buy them within 14-21 days after your initial trip deposit. Rather than feeling like it's a waste of money, I'm very happy when I don't have to use it!

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Is it true Senior citizens with medicare are not cover outside of USA ?? :confused:

 

I'm still several years away from having medicare but that is my understanding.

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good example of someone who didn';t have insurance... a friend (58, so not OLD)... was on a european med. cruise.. tripped and broke her leg.. went to hospital, had to have her leg put in a cast and flown home.. had to be first class because leg had to be elevated... flight cost home was 7,000 ... insurance would have cost approx. 250.00... it's a crapshoot... I'm sure more do not use it than do and that is why the insurance companies make money and stay in business.. since that episode I always take insurance... I also had an older friend on a cruise have a heart attack in japan and all expenses and flight home were covererd by the insurance they had taken out... I never used to take insurance but now I do... even tho I could afford to pay my way home for the small amount of money relatively speaking.. I figure let someone else pay for it... also am taking my family on a cruise to the greek islands which is costing approx. 15,000$.... to take insurance 'just in case' was a no brainer...

Edited by Host Star

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...it's a complete waste of money, yet I see many upper-middle class families waste their money on this garbage.

 

Someone please explain to me why they bother.

 

Depends on you tolerance for risk. (You don't need to waste money on fire insurance on your house if you have the financial means to recover from your loss.) If you should get sick the day before embarkation, or all flights to your departure port are cancelled, you must accept that you will lose 100% of your fare and not whine here later that the cruise line isn't compassionate. If that one in a million risk isn't worth the price of travel insurance to you than that cost calculation is your decision.

 

Last year I had travel insurance on a 21-day mini-suite voyage. It was may calculation that I didn't want to be out $14G should I awaken with vomiting on embarkation morning. Nobody forced me to buy it.

Edited by BlueRiband

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So for we have never been forced to use our insurence for medical reasons but last time we went on a cruise our arrival to USA was delayed because of Sandy and that small inconvenience gave us $600 from our insurence.

 

With insurence we have a number to call where we can speak Swedish and they will help us with everything, that's worth a lot.

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This thread may have started in a very condescending, opinionated way. But it stumbled into a productive discussion. My take is that we should all research and understand our purchases. Then decide if insurance, UDP or whatever else we are considering is worth it to us. Insurance carries a lot of fine print so make sure that you fully understand what is and is not covered. Then decide if you want to purchase it.

 

The key point is to make an informed purchase.

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I will never buy it, though I will consider some form of foreign medical insurance if I cruise/travel to third world countries, as that might be worth having. I've traveled before without it, but maybe that was a mistake.

Good for you.

 

I hope this thread made you realize that you're OP was a total swing and a miss. Travel Medical and Travel Cancellation is a good sound financial decision in most cases for people of all ages. Insurance is available for a reason. The concept of insurance was invented in ancient times and people have been buying it ever since. The insurance companies have people who are smarter than you or I who run the numbers and come up with a premium that is low enough that people will purchase it, but high enough that they will make a profit. They do this by calculating the difference between the vast amount of expected purchasers vs. the low amount of expected claimants. There's a method to their madness. And if they miscalculate too many times, they fire the people who miscalculated and hire somebody else with a better formula and a better calculator. Or, they go bankrupt.

 

My wife and I are late-40's and we buy both medical and cancellation/interruption coverage (it's included in one of my credit cards, but that's besides the point.) If I were to buy it separately, the medical coverage is cheap and worth it's weight in gold. For a family of 4, a two week holiday in Florida will run less than $120. Why on earth would I, as a Canadian, risk financial ruin if something were to happen to anyone in my family and we had to deal with the for-profit disaster that is the US healthcare system?

 

Although more expensive, cancellation/interruption coverage will refund any non-refundable portion of my vacation. What if my elderly mother-in-law (who isn't going with us) decides now's a good time to have a heart attack and is put in the ICU? And what if my 15 year old son breaks his leg in 3 places playing football a week before we leave? I could go on and on with possible scenerios, but the quick answer is "We would get our money back."

 

Buying travel insurance is a sound financial decision. You can try to justify otherwise all you want, but shrugging it off so decisively as you have done in your OP is not being practical. I don't think you thought it all the way through. There's a big difference between being "frugal" and being "cheap". I suspect you're being the latter, not the former.

Edited by rajones007

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Go take a look at the NCL Facebook page right now. There's an entire family on there complaining how horrible NCL is for not refunding their lost funds after they all cancelled their cruise due to a sick family member with cancer and don't understand why NCL can't make an exception.

 

I was going to make the same comment. I feel bad for the family but that is why you purchase the insurance, it is ot right that they are having friends and family pressure the cruise line to give them another cruise.

 

Op, this little boy is 5 years old. Age has nothing to do with it.

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This thread may have started in a very condescending, opinionated way. But it stumbled into a productive discussion. My take is that we should all research and understand our purchases. Then decide if insurance, UDP or whatever else we are considering is worth it to us. Insurance carries a lot of fine print so make sure that you fully understand what is and is not covered. Then decide if you want to purchase it.

 

The key point is to make an informed purchase.

 

It has been a good discussion but could have been had just as easily without the condescending, opinionated way (which is still evident in the OP's responses).

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Is it true Senior citizens with medicare are not cover outside of USA ?? :confused:

 

Not covered by Medicare or the Travel insurance-----which?

 

Will the Travel Insurance cover seniors?

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3

Will Medicare pay for medically necessary health care services

I get on a cruise ship?

Medicare may cover medically necessary health care services you get on a cruise ship in these situations:

The doctor is allowed under certain laws to provide medical services on the cruise ship.

The ship is in a U.S. port or no more than 6 hours away from a U.S. port when you get the services, regardless of whether it’s an emergency.

Medicare doesn’t cover health care services you get when the ship is more than 6 hours away from a U.S. port

 

http://www.medicare.gov/Pubs/pdf/11037.pdf

 

see the pdf for a full explanation.

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Not covered by Medicare or the Travel insurance-----which?

 

Will the Travel Insurance cover seniors?

 

Travel insurance will cover anyone that is included on the plan as a traveler (seniors will probably be charged a higher premium).

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Travel insurance will cover anyone that is included on the plan as a traveler (seniors will probably be charged a higher premium).

 

 

In general Cruise lines charge the same amount regardless of age. Private insurance is age rated.

All cruise lines insure the medical and other portions of their coverage except for the refund or credit of the cruise price for the cancel for any reason coverage. The cruise lines use an insurance company that is admitted in every US state.

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In general Cruise lines charge the same amount regardless of age. Private insurance is age rated.

All cruise lines insure the medical and other portions of their coverage except for the refund or credit of the cruise price for the cancel for any reason coverage. The cruise lines use an insurance company that is admitted in every US state.

 

Yes, I forgot that the cruise lines generally charge a one size fits all premium:o. It pays to shop around.

Edited by sparks1093

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People are buying travel insurance even if they don't really think it is...

 

The ones that buy cruise sponsored excursions cause the cruise lines guarantee that the ship will wait for you if your excursion is late getting back to port

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In general Cruise lines charge the same amount regardless of age. Private insurance is age rated.

All cruise lines insure the medical and other portions of their coverage except for the refund or credit of the cruise price for the cancel for any reason coverage. The cruise lines use an insurance company that is admitted in every US state.

 

 

Back in our early days of cruising, we used to take the cruise-lines offered coverage with no thought. And the price was very reasonable. I don't think I was ever offered a copy of the insurance contract outlining exactly what is and is not covered, with coverage limitations stated. On similar threads, I have seen others comment that they have gotten this, but it required some calls and was a bit of a hassle.

 

For the past few years, we have purchased our own insurance and for a few dollars additional are able to customize the coverage we want. A base policy may offer a $10,000 limit on evac for instance. For $3 or $4 more, you can up this to $100,000. They will send me a quote listing every item covered, coverage $$ limits, all terms and exclusions pre purchase so I can make an informed decision. Of course this coverage is probably more expensive than that offered by the cruise line.

 

With the cruise line, you just pay your money and get no info it seems. I wonder if it is even adequate coverage. Sometimes you get what you pay for.

Edited by punkincc

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Not trying to be condescending here, but trip insurance is one of the worst value things one can purchase. It's pretty much throwing money away unless you have a high chance of using it.

 

I can only think of three scenarios where it makes sense to purchase trip insurance:

 

1) You are living on a tight budget, and the money you lose by not being able to go would be so financially devastating that you couldn't travel again for a long time.

 

2) You are old or in poor health, and there is a fair chance that something will change for the worse between now and your trip.

 

3) You have a family member who is old or in poor health, and there is a fair chance you will have to attend their funeral or final details, and have to cancel the trip.

 

Otherwise, it's a complete waste of money, yet I see many upper-middle class families waste their money on this garbage.

 

Someone please explain to me why they bother.

 

The same reason I have car, home and health insurance - because things do happen. Remember, it is not only for the cruise, it is for airfare, luggage, and catastrophic illness. If DH or myself have to be life-flighted off the ship in Asia, it is nice to know that I won't be hit with a huge bill. If one of us is in the hospital for some accident or illness and we can't fly home as scheduled, our insurance will take care of changing our schedule and allow the healthy party to stay with the loved one coordinating everything taking care of hotels, etc.

 

Like any insurance you hope that you don't have to use it. But if you do, then it is great to have. And not all policies are equal, so you pick the one that fits your budget and possible needs.

 

I think it is those that can't afford a trip who forego the insurance as a wasted expense.

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I used to think that it was a waste of my dollar and a boon for the cruise line. I have never bought trip insurance. Our last cruise in January we had our flight cancelled due to weather. We could NOT get a flight out from Houston in time to meet the ship. We ended up driving north, then east, then south to Miami. It was a 34 hour nightmare, but we made our cruise.

 

Our next booked cruise we do have trip insurance from NCL. We are also going to Europe this summer and that trip will cost about $8000. We will be traveling by air to get to Germany for a wedding, train from Germany to Paris, air back to Germany and renting a car for a week before traveling by air back home. I have elected to purchase travel insurance for this trip also. We never buy insurance on the rental cars but I did on this contract purchase it. I just want the peace of mind in case of an accident that we won't have to pay for a car. :eek: We are in our 50's, completely healthy, and I have a 90 year old dad who is so healthy that he is the pride and poster child of his VA clinic! (His Dr. actually asked to have his picture taken with him in Feb. and introduced him to the clinic manager and another Dr.) But..... you never know. The $150 that I spend on this trip insurance is well worth the peace of mind it will give me.

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