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Your Medical Travel Insurance Deductible Can Save You Money

Your Medical Travel Insurance Deductible Can Save You Money
Financially planning your travel costs includes looking at options to minimize costs so you can budget accordingly – even for your emergency medical travel insurance. Here is a money saving tip for you.

Did you know that changing your emergency medical travel insurance can save you up to 35%? Can you benefit from adding a deductible to your travel insurance?

What is a deductible?

A deductible is the amount you will have to pay out-of-pocket if you make a claim under your travel insurance policy before your insurance provider will cover the balance of the claim.

Insurers usually offer a range of deductible amounts. The higher the amount the deductible is, the greater the discount is on your travel insurance premium.

Can anyone choose a high deductible to save money on their premium?

Yes! …but… consider this: you should add a deductible to your policy only if you would have no problem paying that amount out of your own pocket in the event of a claim. It’s up to you to decide what you are comfortable with and how much you are prepared to pay if you have a health emergency. (And some plans only offer deductibles if you are age 55 or older.)

Buying travel insurance without a deductible is an excellent choice because it means complete peace of mind – but it may also mean that you will pay more for your insurance coverage.

Most importantly you need to be financially able (and comfortable) to pay the deductible. If you have an emergency and your bank account is almost empty, paying for $2,500 or $5,000 of your medical bills may leave you in a bind. It’s best always to make financial decisions that you can manage.

Travel insurance with deductibles may work well for you if you have no pre-existing medical conditions and plan to travel for several months.

How to decide if paying a little more or a little less for insurance is worth it to you

It is important to understand what deductible your choice of travel insurance includes, if you pay more  for ‘no deductible’ and what options and associated savings there are for deductibles.

Here are a few examples of what costs you may face compared to the deductible options you may choose from – keeping in mind that health care in other countries can be very expensive:

A $75 Deductible

Consultation for a health cold

A $500 or $1,000 Deductible

An Emergency room visit (cost varies by hospital) or transportation by ambulance

A $2,500 Deductible

Transportation by ambulance and a doctor’s appointment

A $5,000 Deductible

Transportation by ambulance, an appointment with a specialist doctor, tests, and a one-day hospital stay.

Here’s another way to think about the deductible that may suit you. Imagine you reach your destination and something unexpected happens like an ankle sprain and you have no choice except to contact your travel insurance company and let them know. They will refer you to a proper clinic that will likely give you X-rays. If it is nothing serious, your bill may end up being $450.  If you chose a $500 deductible, you would have to pay the bill in full without being able to claim for reimbursement. But what if it was more serious and you needed an operation? The costs would be much more, but your travel insurance would reimburse you for qualified medical costs over your $500 deductible – likely saving you thousands of dollars in out-of-pocket costs.

Here is an example of deductible options from Manulife, a leader in travel insurance

Manulife offers Emergency Medical Plans to cover up to $10 million in expenses for:

  • Emergency treatment
  • Paramedical services
  • Ambulance transportation
  • Emergency dental treatment
  • Emergency medical evacuation home
  • Repatriation of bodily remains
  • Bringing someone to your beside
  • Return home of children in the care of the insured
  • Return home of travel companion
  • Additional expenses for meals and hotel
  • Return home of vehicle
  • Hospital allowance
  • Childcare
  • Return of excess baggage
  • Phone call expenses
  • Pet return
  • Trip break for Single Trip plans
  • Return to original trip destination
  • Terrorism coverage

Manulife offers options to save on your premiums by up to 35%!

The published rates for the Emergency Medical Plans include a $75 CDN deductible. The following deductible options are available for Emergency Medical Plans only:

Deductible Options*$0$75$500$1,000$2,500$5,000
Applicable savings / surcharge5% surcharge0% surcharge15% surcharge20% surcharge25% surcharge35% surcharge
*$CDN per insured per emergency medical claim

Ask us about your travel insurance deductible options today

At SBIS we work to take the mystery out of choosing your best option for travel insurance by asking you the right questions and providing quotes for different amounts of deductibles from Manulife, Destination Travel, TuGo and more to best match your needs. The result? You’ll have more money left over to do other, more exciting things during your trip instead of paying more for travel insurance than you need to!  Find out more today.

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