Trip Insurance Update

Was it only four months ago that I questioned whether trip insurance was worth the cost? The world was a different place back then, wasn’t it?

Over the past two months, most of us have learned more than we ever wanted to know about insuring our adventures. When we buy a policy, we usually look at the summary of benefits–how much coverage is offered for trip cancellation, trip interruption, medical expenses, lost luggage etc. But how many of us take the time to read the exclusions? Let’s face it, it isn’t easy to get to the exclusion section, let alone the complete policy.

Even if you do decide to try to read the policy on line, it is likely that you will have to click through several screens to get there. Once you arrive, you will find that the list of exclusions is fairly universal among travel insurers. They include things like attempted suicide or other self inflicted harm, criminal acts, pre-existing conditions (unless certain specified rules are followed) AND something that never concerned me before — epidemics.

I have never purchased the more expensive “cancel for any reason” policies so I can’t speak to what those exclusions would be. I assume that it wouldn’t matter. If your spouse was incarcerated for robbing a bank, I imagine you could say that you are canceling because you just didn’t want to go on the trip. But we have no plans to test out my hypothesis.

Right now, so many flight and trip cancellations are truly putting the travel industry under tremendous strain. What happens when the travel company cancels the trip? When an airline cancels your flight? When you cancel and then a few weeks (or days) later, everything is cancelled? What if you cancel far enough in advance that the travel company’s policy is to give you your money back less a change charge, but the company changes their policy? What if the company doesn’t survive? We are all slowly learning the answers to those questions.

But enough of the anxiety provoking questions. Time for some good news and some praise for a company. For the first time ever, I decided to rely on my Chase Sapphire Reserve card to cover our trip insurance needs. Because the Chase Sapphire Reserve card has a rather significant annual charge of $550, (an increase of $100 from when I originally bought it)I had never considered trading in my Chase Sapphire Preferred card (no fee, probably because I had owned that card for more than 15 years, well before they started charging $90 per year). What changed my mind was a post in the Overseas Adventure Travel Forum. One of the posters alerted me to the fact that the Reserve card credits back $300 if you spend that amount on travel, something that we easily do, most years. So, the net cost for the card is actually $200 per year. We clearly could never get trip insurance for $100 per person, per year, so it was time to look a little more carefully at the plan provisions.

Because we have an excellent Medicare supplement, I wasn’t concerned about the skimpy medical coverage of $2,500. It would more than cover any deductible or copay from our Medicare supplement carrier. It also offered $100,000 in emergency evacuation and transportation not already covered by our Medicare Supplement. I also wasn’t concerned about replacement for lost luggage. I never check anything valuable anyway. What REALLY interested me was trip cancellation and trip interruption coverage.

After reviewing the provisions, I felt comfortable that this plan offers coverage as good as I would get elsewhere. The exclusions were standard, but it did have annual maximum benefits of $10,000 per person, $20,000 per trip (since it is only my husband and me, that works) and a maximum payment of $40,000 per year. Our travel expenses easily fit within those parameters. And if it appears that we would be exceeding those amounts, I would simply purchase a supplemental policy. As noted in my prior post, I had always purchased trip insurance from insuremytrip.com and had been pleased with the results. Our cost for very good coverage ranged from $250 per person to a high of $500 per person, which was significantly less expensive than what was offered by the travel company. Still, $0.00 per person seemed like a better deal to me, and that was what we relied upon to cover our costs for our planned Morocco trip the end of March.

In early March, we learned that my husband had a medical condition that was not life threatening, but needed attention, so we canceled. Two weeks later, our travel provider canceled all March and April departures, offering credits toward a future trip. Because our reason for canceling was not due to the epidemic, we were able to get a complete refund from our Chase insurance. And, because treatment has been delayed, I canceled a subsequent trip in June, and the cancellation penalty has also been refunded.

So what do I have to say about my experience with Chase Sapphire Reserve’s vendor, Allianz? Nothing but high praise. Claims can be submitted through their website, by regular mail or by email. The process is EASY and it was FAST. It only took two weeks from the time we submitted the physician’s statement until the time I had my check in hand. Pretty amazing given what has been going on in the travel insurance world.

So, my earlier advice still stands. Do your research, know what you need, and what you are buying when you are able to travel again. I hope it will be soon!

What a Difference Eleven Days Make!

It’s hard to believe that only eleven short days ago, we were weighing the pros and cons of canceling our trip to Morocco. Unless you are living in a cave, on an island, without cell reception, you know how the world has been turned upside down by the CoronaVirus. The tragedies in China, Iran and Italy are all heartbreaking and sobering.

On March 4th, when I last posted, the conventional wisdom (and internet info) said that if you washed your hands, didn’t touch your face, stayed six feet away from sneezers and had a relatively robust immune system, then you were in good shape to win the CoronaVirus battle. Okay, then. The more cautious (or as my mother used to say–the more REASONABLE) member of this traveling duo voted for immediate cancellation, while the other advocated to “wait and see”. My family has absolutely no problem figuring out who was who.

Ultimately we did both. We waited five more days, then canceled. It seemed like every hour, we were getting notified that something else was being postponed or canceled, like basketball, political gatherings, Broadway shows, our speaker series. As it turns out, a few days later, our tour company, Overseas Adventure Travel announced that ALL March and April departures were canceled. Those who had not yet canceled could get a voucher for a future trip.

Some friends are currently out of the country. I just heard from one in Egypt. She said that OAT is cutting her trip short because of all the flight cancellations. Her group will be getting a pro-rated refund. Talk about a positive attitude–the group is already thinking about when they will be able to return. Another friend made it to JFK, then learned that Argentina had closed its borders to all travelers from countries with CoronaVirus outbreaks. HER trip ended before it even started.

We are concerned about the impact this is having on the wonderful tour guides we traveled with over the past several years. We hope that they, especially the ones in Italy, are safe and are not economically hurt too badly by this slow down in tourism.

So, where are we now? For the past few days, we have been practicing “extreme social distancing”. Today, we were notified that our local Y is closing for two weeks. We had stopped going two days ago, not because we are panic stricken, but because we wanted to do our part to help keep our community safe. Let’s hope that together we can all take the necessary steps to “flatten the curve”.

To GO or Not TO GO, THAT is the Question

In September of 2018, we signed up with Overseas Adventure Travel for a March 2020 trip to Morocco. Why plan so far in advance? We wanted to travel with friends, OAT limits their groups to 16, and popular trips sell out quickly. We had no difficulty recruiting 11 friends to go on the tour with us. So far so good. Fast forward to today, with departure date rapidly approaching. As my favorite philosopher, John Lennon, once said, “Life is what happens when you’re busy making other plans.”

Well ol’ John was right. “Life” has certainly jumped up and slapped us in the face. Within the last two months three travel buddies had to drop out. One member of a couple was diagnosed with a serious medical issue, then another fell and fractured her knee. Their future absence made us realize how much we were looking forward to spending time with them.

Because the trip is so popular, their spots were quickly taken by other OAT travelers –also known as friends we haven’t met yet. So, there will still be 16 of us on the trip. But wait, we aren’t finished. Unless you are in a coma, you have probably heard about the coronavirus. So far, none of us has allowed it to disrupt our plans.

Fortunately, according to our State Department, Morocco is looking safe. Still, we have to fly to get there and back, and our plans include a three day stopover in Paris before we enter Morocco. Although the State Department hasn’t identified France as a “do not travel” country, another source indicated that several cases have popped up in France.

What to do? Sadly, we have to acknowledge that being over 65, we have aged into the “at risk” group. Fortunately, we are relatively healthy, and are up to date on all of our shots. Still, we recently experienced another country’s health care system, and although the outcome was positive, visiting my spouse in the Alice Springs Hospital was not a high point of our trip to Australia. (Clearly, it wasn’t my spouse’s either.) On a positive note, although we learned just how wonderful our medicare supplement coverage is when we are outside of the USA, we hope to never have to use it again!

As of today, according to the US State Department, Morocco and Paris have only the usual warnings about terrorist activities, but that is the world we live in. Given our record of gun violence in schools, churches, shopping malls, movie theaters, we could just as easily be mowed down by a home grown terrorist shooting his assault weapon. I refuse to let terrorists, either here or elsewhere, win. A virus, however, is another matter.

As of today, Morocco has reported its first case of the coronavirus; its victim, a man who returned from a visit to Italy, is being treated in a Casablanca hospital.

In Paris, a protest by workers closed the Louvre for two days, until the Museum staff assured the workers that “proper measures” to ensure their safety were being taken.

What happens if we get to Paris, and Morocco decides not to let anyone into the country from France –or from the USA? Let’s face it, several states have reported outbreaks, with many of the victims having no known source of contact. Our response is being managed by Mike Pence, who is not noted for his expertise in the medical and scientific arena. Maybe other countries will view US as being problematic? What if we make it to Morocco, an outbreak occurs and we can’t fly home? What if we catch a cold or some other nasty thing on the flights, either to or from our destination and we have to be quarantined until we are tested and certified as okay? So many “what ifs”. One thing that’s certain, if we go, my plan to travel with “carry on only” has been abandoned. I want to be sure we have enough clean clothes to get us through any “what ifs” that come our way.

In addition to cancelling all trips to China, South Korea and Mongolia, OAT has allowed travelers that signed up for their Italy trips the option to cancel right up to the date of departure, choosing either to apply their payment to a future OAT trip or to get a refund, minus a small processing fee. That gives us peace of mind.

What will we do? We will prepare as if we are going to take the trip, watch the news, check the internet and wait to see how it all unfolds.