Is travel insurance necessary?

When senior retirement comes, you may be excited and ready to move to a new city or start traveling around the world to see places you never had time for. With so many opportunities to spend your newly-earned free time, the biggest problem might be figuring out where you want to go. Once you do decide to take a trip – whether that's to the south of France or South America – you'll have to make a decision regarding travel insurance.

What is travel insurance?
When you travel, you need to book your flights, lodging and transportation ahead of time, often paying right when you make reservations online or over the phone. To protect this investment, you can purchase travel insurance, which will help cover the losses if you need to suddenly cancel or an outside force like a hurricane puts your trip on hold. Instead of missing out and losing your money, you can recover those funds and try again at another time.

There is another form of travel insurance that is crucial for seniors to consider: health care coverage. After reaching Medicare eligibility, you should be aware that coverage will not follow you overseas when you go on vacation except in specific circumstances. In general, Medicare will cover you if you need medical care while traveling through Canada, when a foreign hospital is closer to you than a domestic one or if you board a ship in the U.S. that travels within adjoining territorial waters. This could leave you vulnerable if you were to need medical attention while traveling outside these areas. For this reason, you can purchase travel insurance that covers health care expenses. Think of it as supplemental insurance that will give you peace of mind and come in handy if you need care.

Is it necessary?
This is the big question people most often ask themselves before deciding to purchase travel insurance. In some cases, it may not be necessary to buy a policy. For example, if you are traveling within the U.S. and have Medicare, you don't need to buy additional coverage, as your policy will still apply in another state. Similarly, if you book a few nights at a hotel and need to cancel, you might be able to get your money back without travel insurance.

However, when you travel out of the country, the risks get much greater, mostly because your insurance won't apply and the costs are likely higher. You won't have to carry the stress of being without financial protection when you buy travel insurance. Coverage is affordable and will be well worth it in the case of an emergency or cancelation.

To maximize your Senior Health Insurance benefits, visit MySeniorHealthPlan.com for quick, simple and easy information.

2014-07-13T07:17:17+00:00 June 13th, 2014|Finance & Planning|Comments Off on Is travel insurance necessary?