Travel Insurance...Just The FAQs

Did you hear about the resort guest who was sitting by the pool, minding his own business, when a palm tree toppled over and crushed him to death?

I’m not making it up. It happened a few weeks ago at hotel in the Caribbean. No one ever likes to imagine the unimaginable, but sadly enough, it happens all too often.

Americans have some of the best medical care in the world and it’s sorely missed when we’re traveling internationally. But when things go wrong abroad, there are some things you had better not leave home without, and the American Express card is not at the top of the list.

While most people don’t think twice about the necessity of other types of insurance, travel insurance somehow falls way off the radar screen. According to the Centers for Disease Control and Prevention in Atlanta, one out of every two travelers in a foreign country will experience some health problem. While most are minor ailments that can be treated with a trip to the pharmacy, there are times when it is not as simple.

Sometimes a domestic trip might not require insurance, but rarely is there an international one that does not. Here are some of the questions I am frequently asked:

I already have health insurance, why do I need travel insurance? Read your fine print. A lot of insurers will not cover you in a foreign country. Also, many foreign hospitals will not let you leave without payment arrangements in place. Be sure to check your policy very carefully.

In the event of a severe emergency, you may want to be airlifted to quality medical facility. Trust me, you do not want to be treated in a third-world hospital. While immediate care is critical, sometimes it just makes more sense to wait until you can get qualified care.

Travel insurance will cover you. Since medical treatment is an immediate need, most insurers will require documentation to support the claim. Be prepared and keep all invoices, notes, and receipts. Check with your travel insurance policy for their procedures—many require a toll free call to them prior to any treatment being initiated. It may be a hassle in the end; but the main point is that you received the proper medical attention.

Well, I’m healthy, is that all it covers? Not really. While you may be healthy, accidents do happen. Stupidity happens. Ask my cousin who had the urge to become an Acapulco cliff diver in Bermuda. The coral scrapes healed, but only after an unscheduled trip to a local emergency room, a first class flight back to Philadelphia, and 3 days in a hometown hospital. Don’t forget those you leave behind as well. Travel insurance policies will cover you if you need to return to take care of an ill or dying relative.

How much coverage do I need? Policies vary in their coverage, but most of them include some sort of trip delay insurance (missed the flight), baggage delay insurance, supplier bankruptcy, terrorism incidents and trip cancellation insurance. You can even be covered for pre-existing conditions under certain policies. Be sure to read the complete list of coverage before agreeing to purchase a policy so you know what is covered and what is not. Ask your travel professional to review the benefits of all policies for you if you are unsure. In most states, the sale of travel insurance is regulated and your travel agent is required to have a license to sell the product.

So how much is this going to add to my trip? Not nearly as much as it will cost if you need it and don’t have it. Most policies are based on your age and the cost of the trip. Full coverage policies range from 7 percent to 10 percent of the cost and limited policies are much less. When you consider the costs of a medical evacuation or the loss of a trip when a family member becomes ill, the investment is well worth the cost.

Do I always need insurance? If you are willing to assume a financial risk (the cost of your trip), you can probably forego insurance for your domestic travel. Your health insurance should cover you in the United States, and the level of care is more than adequate. However, if you are traveling internationally, insurance should be seriously considered. The less industrialized the country, the greater the need.

My vacation package has insurance built in. Isn’t that enough? Maybe. A lot of “insurance policies” packaged with a vacation are not insurance at all but merely a trip-cancellation waiver. A trip cancellation waiver usually allows you to cancel your trip for any reason (insurance policies need a covered reason) and receive a full or partial refund — sometimes in funny money to be used with the travel supplier within one year.

This is great for those “my girlfriend dumped me and I ain’t taking her to Cancun” stories. You can usually identify a trip cancellation waiver by the low price (typically $50 to $75 per person) and the price not being tied to the cost of the trip. However, some of the policies offered through the travel supplier are indeed a form of travel insurance. Again, read the fine print. Most policies issued by a travel supplier do not cover financial insolvency on the part of the supplier. In some cases, it might be your best option to purchase a trip cancellation waiver and a third party travel insurance policy.

Who are the good insurers? There are many companies offering travel insurance today. Two of the best are Access America and Travel Guard. Both have been around for a long time and are very good with settling claims. Both of these insurers are long standing preferred suppliers to some of the largest travel companies including Carlson Wagonlit Travel. For more details, check out their Web site or shoot me an e-mail.

If you are comfortable in deciphering insurance policies, you can purchase these directly from the insurers. While insurers do pay a commission to your travel professional, you will not pay any more by using your agent. Your travel professional is familiar with you and your needs, as well as the requirements of the policies and the way the company handles claims. Inside insight is a valuable tool. Your travel agent (depending on the state) may be required to be licensed to sell travel insurance. If you are not confident that your agent knows the details, don’t be afraid to ask to speak with someone who does. A denied claim is a nightmare for everyone and you deserve to have a knowledgeable professional explain the different programs and coverage for you.

Regardless where your travels may take you, consider insurance. While not needed in all circumstances, it is desirable in many. Each situation is unique, but you will do yourself a disservice if you don’t at least take a look.

5 Tips For Getting The Star Treatment

You've probably seen it on TV. There's Robin Leach is teeing off of the 17th hole at the Port Royal Golf Course. Or Joan Collins is sipping champagne in first class. Or Nicole Kidman is frolicking in the warm waters of the newest Jamaican resort.

And you've wondered: how do they do it?

Strictly between us, these perks are available to mere mortals, too. You just need to know how to do get the star treatment. Here are five sure-fire strategies.

1. Book off-season. There is no law that says you have to summer in the Hamptons or ski Vail and Telluride in the winter. These areas and many other ritzy destinations are just as beautiful (if not more) during the off-season.

Bermuda's high season runs from June through September with average hotel rates around $350 to $400 a night. Pack a sweater and a light jacket in April and you can score the beautifully pink Hamilton Princess for $249. With the new low fares from USA 3000 and you and a golfing buddy can get in and out for less than $2300 for the week.

London has always been one of the priciest cities in the world with some of the most opulent hotels on the planet. However, London in the fall or winter is a bargain. Right now, British Airways has a special round trip fare in their World Traveler Plus Class for $398. Your travel planner can usually find a good hotel in a good location off season for ₤100 a night. Those same rooms can skyrocket to ₤250 a night or more during the summer months.

Travel when the others aren’t and you will reap the rewards.

2. Ask for an upgrade. As simple as it seems, many folks forget to ask for an upgrade. If you are traveling off-season, your odds improve exponentially. Does the hotel have a concierge-level offering a continental breakfast, private bar, appetizers, private pool, or spa? Chances are that the floor is at least partially occupied and there is no downside for the hotel to grant your request. Don’t hold back because you are floating, or flying either. A polite request can be turned down, of course, but a polite one has a much better chance of acceptance. It also does not hurt to be a member of their frequent traveler program.

3. Toot your horn. Are you celebrating a birthday, anniversary, wedding, or graduation? Let your travel agent know. A good travel planner will have the connections to make your experience more memorable. All of the travel suppliers want happy clients and will go out of their way for you if they can. Many honeymooners are upgraded on flights (no, it is not a good idea to just pretend). Complimentary spa treatments at resorts, flowers or wine on a cruise, or an upgrade to a luxury car are not unusual for special occasions.

4. Be a guinea pig. Have you heard the buzz about that great new resort or the latest luxury liner? The new hotel? Nothing ever goes as planned with a debut and this is a perfect time to reap the rewards. The Whitehouse, Sandals latest resort, was scheduled to open on Jamaica’s southern coast in February. As it turned out, they were not as ready as planned and the initial guests were offered the opportunity to come and enjoy what was open, and to be virtual guinea pigs.

What they got was a slightly flawed week — incomplete landscaping, missing artwork, and staff still learning the ropes. The reward: an additional week at any Sandals resort in the next year. A true two-for-one offer. Our clients are planning on returning later this year, courtesy of Sandals and paying to upgrade their room. Many new venues will offer some fabulous rewards to those brave enough to give it a shot.

5. Reposition your funds. If you are looking for the experience of a destination, spend your money on something other than the room. Honestly, how much time is really spent in a hotel room anyhow, unless you’re a honeymooner? If you have selected a fabulous resort with all the amenities, use the amenities. If it is an all-inclusive resort or cruise, no one will know the difference between the penthouse suite and the cargo hold. One of my most memorable (and impressive to my girlfriend) experiences was being met at the airport in Hong Kong with a vintage Rolls Royce from the Intercontinental Hotel — formerly The Regent.

Traveling is about exploration and new experiences. Some may not be as perfect as we like, but they are all part of the experience. While most of us can’t afford some of the luxuries of the rich and famous, we can certainly get a taste here and there if we play the hand we are dealt with some skill — and a little luck.

A Mostly-Inclusive Vacation

Is an all-inclusive vacation really all inclusive?

It’s a question that comes up often when travelers consider whether to book a resort or a cruise. So often, in fact, that it makes me wonder if there really is such a thing as an all-inclusive vacation anymore.

And if so, which one is more inclusive: the cruise or the resort?

Answer the question correctly, and you’ll have a great vacation. Answer wrong — and by that, I mean you or your travel agent fail to research the product — and you could end up on the trip from hell with a credit card bill to match.

No need for that to happen. I’m here to help.

Cruises are rarely all-inclusive.

Most cruise lines include your cabin, your meals, and your onboard entertainment in the price. But if you are not careful, the bill that is discretely slipped under your door on your last night might make you want to jump ship.

While cruising, you can expect to pay for any drinks (including soda), a fee to dine in a specialty restaurant, your shore excursions, onboard purchases, gambling (never charge gambling to your stateroom), maybe ice cream at the Haagen-Dazs shop, your burger at Johnny Rockets, your Internet access, your telephone calls, and, of course, your tips.

For a family of four, you can easily expect to add $1,000 for your all-inclusive cruise. When you board, you will usually be required to put a credit card on file for the charges. For those who do not use credit cards, many ships are now requiring cash deposits of $200 per day with any refunds due to be paid by check when you disembark. So save some money for the cab fare home.

As long as your travel professional (or Web site) has made you aware of the additional costs, you should be ready to enjoy the experience that only cruising can offer. Unlike any land-based vacation, you are visiting many different places. Your week-long cruise can take you five or six ports of call with a day or two at sea.

While the port stays tend to be short, it is a good way to get the flavor of a destination — perhaps as a prelude for a future land-based visit. Ships currently sail in all seven oceans and while the Caribbean may be the most popular, cruising can be a great way to see Europe and the South Pacific. If the warm sand is not calling, cruising Europe can save you a bundle. Take advantage of the decline of the dollar and book your mostly-inclusive vacation with your US dollars and save the gouging for that fabulous restaurant in Monte Carlo.

All-inclusive resorts are a relatively new phenomenon, and almost exclusive to the Caribbean and Mexico.

For one upfront price your vacation does indeed include virtually everything. Unlike cruises, these vacations typically include all of your drinks, ice cream, water sports, diving, and yes, even golf if it is available.

If you are a finicky drinker, be sure to check if the program includes premium alcohol, a lot of them only include the local domestic hooch. Of course, any personal purchases and gambling are on your own.

You will be required to put a credit card on file for your incidentals, but it is very easy to walk away without a charge. Even your personal expenses will be a bargain in the Caribbean and Mexico due to the strong dollar in those areas.

Now that your expenses are in check, be sure the all-inclusive resort lifestyle is for you.

Most resorts do offer side-trips to local attractions and these prices are on par with any shore excursions offered by the cruise lines. However, most all-inclusive vacationers tend to remain on the property to simply bask in the sun with an umbrella over their head and another in their drink.

Like the cruise lines, the food will be varied in the main dining area, and they will typically have several themed restaurants for you to try out as well. Most of these do require a reservation and have a dress code, but are available at no additional charge.

As you go through the process of planning your vacation, you need to keep not only the trip budget in mind, but the ultimate cost of the trip. Here is where an experienced travel planner can be worth his weight in gold.

There are many destinations that are very affordable but can’t be flown to affordably. Cancun and Jamaica (the epicenter of all-inclusive resorts) offer affordable airfare worldwide. Cruising is no longer limited to south Florida either with cruises departing from Baltimore, Norfolk, Philadelphia, New York, New Orleans, Galveston, Los Angeles, Seattle and San Francisco. Getting there has become affordable.

Regardless, these two choices will let you maintain control of your vacation costs so you can come home relaxed and refreshed — not broke.