Travel insurance and WC

[basedow]

For cruisers who have done or thought about doing a world cruise, do you think it makes financial sense to purchase travel insurance?

 

I think the insurance is based as a percentage of the total trip cost (minus ship excursions I guess) so it would seem to me to be extremely expensive to purchase.

 

Is there something I'm not seeing? Thanks for your thoughts on this.

 

Basedow

[wishIweretravelling]

More days mean more opportunities for things to go wrong and you needing to leave the cruise suddenly. And the higher fare means more money to lose if you have to cancel. I would never, never take a cruise without insurance, and certainly not a WC.

[dfb]

Everything Crystal said... Our WC was the first time we ever purchased trip insurance for all the reasons she gave. It is very expensive as is the trip. Expect 10% or more of your trip cost, but also they factor in other things such as your age, where you live, how long the trip is and where it is going, etc. Unless you can afford to self-insure then you should probably buy coverage. On a trip this big, too much can go wrong. CSA used to have a policy that refunded if you canceled before penalty. Now CSA and HTH have policies that waive pre-existing conditions if purchased at final payment, so essentially the same deal, where you do not lose your premium if you cancel before penalty phase. Debbie

[basedow]

It seems that the health insurance part would be expensive because one is being covered every day but that things like "lost luggage", "plane delays", that kind of thing is only occurring twice (before and after). However on a long cruise one is paying for that sort of thing on a daily basis even though it isn't pertinent.

 

 

I'm afraid I can't make myself clear but I'm trying to say it seems one is paying disproportionally for the same policy that's based on a one to two week trip. For example, if a one week trip for two costs $15,0000 the insurance would be $1500. If a WC is say $300,000, the insurance is $30,000? Doesn't that seem out of whack?

 

Thanks for trying to clear the muddle!

 

Basedow

[wishIweretravelling]

In the grand scheme, lost luggage and plane delays are the smaller risks (in terms of money exposure), and thus are practically throw-aways from the insurer's perspective. The big ones are if you fall seriously ill during the trip, or a family member does, and you have to cut it short and go home. You lose the money for the rest of the trip, plus the cost of evacuation. And, it's possible that you'll get sick and wind up in hospital in some place where your health insurance does not cover. Or if you have to cancel right before departure and wouldn't be able to get your money back. For the during-cruise items, the risk is greater because there's more days in which it could happen. And, for the cancellation, there's more money at risk.

 

If it were just lost luggage or flight delays, insurance wouldn't be worth it. It's the other stuff. Having once had to use the insurance (a cabin-mate had to cancel at the last minute, and I'd have been stuck with a 100% single supplement were it not for insurance--and she'd have been stuck with paying for a cruise she couldn't take), I've come to appreciate it.

[larry1365]

Basedow --

 

We didn't purchase insurance for our 2007 World Cruise. I know many disagree with that decision. We figured we were active and in good health...so we took a chance.

 

Insurance would have cost about 11% of our cruise fare. For that amount we could take a week-long cruise or two. We had been on six previous cruises (the longest 14 days) without insurance. So, in total, we are way ahead...and on a WC if you had to leave for a short time you could actually leave and come back -- which one couple actually did in 2007.

 

I do beleive that on the next long cruise will will sign up for MedJet Assist, which would get you home (if stable enough to travel). But as long as we are in good health, we would not buy the general trip insurance.

 

I beleive this must be a very personal decision and there is no "right" answer. It depends so much on personal health and comfort levels of risk vs. savings.

 

Larry

[Iamboatman]

I would strongly agree that if you have a good health insurance policy and use a credit card to charge your cruise, the chances that something is not already covered by what you already have is pretty small. (If you need to upgrade your health insurance, it probably is far less expensive than getting travel insurance for that purpose!)

 

The only real issue (assuming a healthy financial state where shelling out funds and being reimbursed isn't going to be a real hardship) is if you have to cancel the cruise or end part way through. That is a pure risk-reward scenario and a personal decision. For a very expensive trip with a hefty non-refundable deposit booked 1 1/2 years out I would go for the insurance; otherwise I would think twice.

 

Also, there is no requirement you take out Regent's insurance. There are other solid third party policies that give similar coverage at a substantially reduced rate...and they can substantially vary (sometimes by thousands of dollars) for similar coverage.

 

Doing one's homework can payoff...and make the decision a bit easier to make and, if appropriate, pay.

[Pam]

We know someone who had a massive heart attack on the first leg of a world cruise, had to be airlifted from the ship, spent weeks in a hospital in a foreign land, and then was flown home in an ambulance plane. The insurance paid everything.

[Iamboatman]

That is a tragic situation, but my point is that those sorts of coverages are included with many health insurance policies and also, or supplemented by, credit card insurance coverages.

 

For some it is worth the peace of mind and/or seamlessness of having specific travel insurance, but for others they just are not willing to pay thousands of dollars to purchase again that which they may already have paid for.

 

It is a personal decision to be made on a case by case basis.

[basedow]

Thank you for all your responses. I was looking for thoughtful answers and I got them!

 

It's a sticky wicket though and I'm not so sure what I may do in the future. When I go on Medicare sometime in the future, that may influence my approach to travel insurance.

 

Thanks again,

 

Basedow

[petlover]

We never buy cruise insurance and we've been on 2 world cruises and a 60 day circumnavigation of South America and numerous cruises less than 30 days. It is our choice and others may disagree. You need to do what you feel comfortable with.

 

We do have medical insurance that covers us out of the country and MedJet evacuation insurance. I would never travel without these! The insurance for the World Cruise is very very high.....probably because the length of time you're away and the countries (many 3rd world) that you visit. On top of this the average age of the passenger on the WC is higher than 56 (the average age of a Regent passenger). In our situation, if we were to have to cancel a WC and lost 100% of the money, we would still be $$$ ahead so I guess this is what they consider "self insuring".

 

If you have health conditions, elderly parents etc. you may want to buy it. You must do what is right FOR YOU!!

[basedow]

Pet Lover,

 

You know it sounds kind of scary either way!:)

 

Med Jet Assist is new to me but it sounds like a good thing to have.

[dd@sea]

We use med jet assist too as we were in Egypt for 15 days and then a 17 day cruise from Alexandria to Dubai. We will continue to renew our med jet insurance as it can activated from a minimum of 150 miles from your home. It is good to have that security of knowing you can, and your spouse, can get home if a medical condition resulting in hospitalization should occur in your travels.

[Dreps]

And if you belong to AARP, there is a small discount on Medjet Assist insurance.

[iamtrustworthy]

It seems that the health insurance part would be expensive because one is being covered every day but that things like "lost luggage", "plane delays", that kind of thing is only occurring twice (before and after). However on a long cruise one is paying for that sort of thing on a daily basis even though it isn't pertinent.

 

 

I'm afraid I can't make myself clear but I'm trying to say it seems one is paying disproportionally for the same policy that's based on a one to two week trip. For example, if a one week trip for two costs $15,000 the insurance would be $1500. If a WC is say $300,000, the insurance is $30,000? Doesn't that seem out of whack?

 

Thanks for trying to clear the muddle!

 

Basedow

 

Hi Basedow,

 

While it may seem that you're paying for coverages you won't use on a daily basis, the reality is that the vast majority of trip / cruise insurance claims are for trip cancellation / interruption and emergency medical / evacuation.

 

I'm not an insurance company, but I wouldn't be surprised if those other coverages are in there for more cosmetic reasons. IMHO the plans that offer $1,000,000 emergency medical evacuation will never pay close to $1,000,000 for this, but it seems to have a mesmerizing effect on people to make them think they're getting a superior plan.

 

The companies I know price their trip / cruise insurance on 3 factors:

- the traveler's age at the time they get the insurance

- the per person prepaid non-refundable trip cost

- total trip length. it's the same cost up to 30 or 31 days with a per day cost over the 30 or 31 days

 

In addition, you're not obligated to insure 100% of your trip costs. Knowing this can be a big advantage. That's because if your main reason to get trip / cruise insurance is to be sure you have adequate emergency medical / evacuation coverage, you can insure any trip cost and still have the full medical & evacuation.

 

Back to insuring the per person prepaid non-refundable trip cost. When we insure WC's we find that many people are using First or Business Class tickets to get to where they are picking up the WC.

 

You only have to include the cost of Business Class tickets if they are non-refundable. In the past, Business Class and First Class tickets were refundable, but recently we’ve been seeing both Business Class and First Class tickets that are not competely refundable.

 

Therefore, it’s very important you find out if your Business Class tickets will refund all your money if you cancelled your trip. Ask them “If I got hit by a cement truck and had to cancel my trip, will you (the airline) give me 100% of my money back in cash and not a voucher or future credit toward the purchase of another ticket?”

 

I hope this helps you.

[basedow]

Iamtrustworthy,

 

Thanks for your reply. All the replies have helped me think through this. I believe the passenger really should do the homework on this and not just leave it to the TA. Or at least, that would be best for me and "my personality."!:)

 

Basedow

[iamtrustworthy]

...Back to insuring the per person prepaid non-refundable trip cost. When we insure WC's we find that many people are using First or Business Class tickets to get to where they are picking up the WC.

 

You only have to include the cost of Business Class tickets if they are non-refundable. In the past, Business Class and First Class tickets were refundable, but recently we’ve been seeing both Business Class and First Class tickets that are not competely refundable.

 

Therefore, it’s very important you find out if your Business Class tickets will refund all your money if you cancelled your trip. Ask them “If I got hit by a cement truck and had to cancel my trip, will you (the airline) give me 100% of my money back in cash and not a voucher or future credit toward the purchase of another ticket?”

 

As I re-read this this morning, I see I should've worded this differently:

 

Instead of saying "You only have to include the cost of Business Class tickets if they are non-refundable", I should have said "You will only be reimbursed for the Business & 1st Class tickets' prepaid non-refundable value."

 

My original purpose was to convey the idea that if you are insuring a trip cost where there's no cancellation penalty, then you are wasting the trip insurance coverage (and overpaying) since it only reimburses you for prepaid non-refundable trip costs.

 

I hope his makes better sense.

[dougburns]

I would reiterate what Marcie said about insurance, but more importantly that about Medjet Assist. Most insurance only evacuates you to the nearest hospital. If you are hospitalized Medjet will come and get you anywhere in the world and take you to your hospital in the States. It's good as long as you're more than 150 miles from home. The cost is minimal at $325/year. I would not go on ANY cruise without insurance and Medjet Assist.

[basedow]

I will indeed purchase MedJet Assist insurance. I see the cost is nominal and the annual cost covers you and your spouse.

 

If you don't purchase travel insurance and you do have to cancel your cruise, can you apply the paid amount to another cruise?

 

Iamtrust worthy, when you purchase such tailored insurance, do you use an agent to craft it for you?

 

Thanks again,

 

Basedow

[basedow]

Will they transport you without you actually being in the hopsital? Say you were in the ER? Who makes the decision to get MedJet and who clears you to fly?

 

My travel agent told me about someone with a broken kneecap who had to stay in a small town in France because she was unable to fly commercially. The TA felt this was a good illustration of why one needs this insurance. Does that sound right to you?

 

Basedow

[dd@sea]

It is my understanding with Medjet Assist you must be hospitalized - not just an ER visit. Then you call them and they work with you and your Drs. to arrange a flight home for you and your spouse - by a medical jet and/other commercial flights. It would be best to go to their website. We got our insurance through our travel agent and now we renew it every year regardless of a cruise or not.

[basedow]

dd, of course. I'll check their website. Thanks for your suggestion.

[iamtrustworthy]

... Iamtrust worthy, when you purchase such tailored insurance, do you use an agent to craft it for you?

 

Thanks again,

 

Basedow

 

Hi Basedow,

 

I'm in the travel insurance business which is why I know about how travel insurance works.

 

Also, if you haven't read read this Cruise Critic article on travel insurance, it's a good place to start: http://www.cruisecritic.com/cruiseplanning/articles.cfm?ID=274

[Iamboatman]

A travel agent really isn't qualified to make insurance decisions. TAs sell travel. Many of us are licenses to sell insurance, but not to underwrite it. Understanding the differences in terms and policy conditions can be daunting...and sometimes what it sounds like what you get is not what you are getting. I am also a lawyer and sometimes I have to reread policy provisions and still find the coverage language unclear. Do your research and don't just look at the two paragraph description.

 

As far as credits toward another cruise, that will almost never happen if you do not have insurance. Many people lose the deposit without so much as a slight discount on a future cruise. Others that leave during a cruise find themselves in the same position.

[iamtrustworthy]

A travel agent really isn't qualified to make insurance decisions. TAs sell travel. Many of us are licenses to sell insurance, but not to underwrite it. Understanding the differences in terms and policy conditions can be daunting...and sometimes what it sounds like what you get is not what you are getting. I am also a lawyer and sometimes I have to reread policy provisions and still find the coverage language unclear. Do your research and don't just look at the two paragraph description.

 

As far as credits toward another cruise, that will almost never happen if you do not have insurance. Many people lose the deposit without so much as a slight discount on a future cruise. Others that leave during a cruise find themselves in the same position.

 

Hi Eric,

 

Yes, reading the entire policy Certificate is absolutely necessary since when someone buys a policy they are telling the insurance company they understand it.

 

Even though many plans have a 10 day free look, I don't think that's a substitution for not reading the policy Certificate.