It can be difficult to get travel insurance if you are over 60 years old. Here's how to make it easier:
Dave Dzurick likes to play it safe when he travels, so he looks around for travel insurance. But recently, he noticed that his insurance premiums were going up.
“Travel insurance premiums seem to go up every year you're over 60,” said Zurick, a former broadcast engineer who lives in Tucson, Arizona.
It's not just his imagination.
“Age is of For insurance companies, it is a critical underwriting factor in determining the risk of trip cancellation and medical assistance,” explains John Rose, Chief Risk and Security Officer at ALTOUR.
Age matters more than ever when it comes to travel insurance
You might expect things like age-based pricing to be consistent in the travel insurance industry, but that's not necessarily the case. Some group travel insurance policies don't take age into account. But change is afoot.
Last year, Travelex Insurance Services highlighted one of its enhancements when it announced its new travel protection plans. It's competitive age-tier pricing that sets rates based on each traveler's risk level.
“We are delivering on the coverage and benefits that our partners and travelers are looking for,” said Brooke Kirby, Travelex vice president of marketing.
In other words, the price you pay for travel insurance will be more age-appropriate than ever before. That's good news if you're young. But once you're over 60, it can become difficult.
What is age group pricing for travel insurance?
Rhonda Abesaram, vice president of travel insurance at AXA Partners US, says age range pricing is a mechanism designed to align prices to the actual risks associated with each age group. .
“We offer a fair and balanced approach to travel insurance,” she says.
Specifically, this approach allows younger travelers to have access to more affordable options and avoid the brunt of one-size-fits-all pricing strategies. Older travelers looking for lower rates can choose a plan that offers minimal coverage as a cost-effective solution, she says.
“We always recommend choosing a plan that balances affordability and comprehensive coverage,” she says.
This is also the view of the United States Travel Insurance Association (USTIA). When I asked about pricing for my age group, the rep told me what plan they were buying, what was covered and what wasn't, and what level of medical costs and medical evacuations they offered. He advised me that it is important to understand the limitations of
“Never buy based on price alone,'' says Robert Gallagher, president of USTIA.
Travel insurance rates may vary
Experts say it makes sense to price travel insurance based on age.
PK Rao, CEO, INF Visitor Care, explains, “The risk of insurance claims is higher, mainly due to health concerns.”
How expensive is it? Consider medical insurance. For example, a 65-year-old U.S. citizen might pay $9 per day for international travel insurance with a coverage limit of $1 million. Meanwhile, an 85-year-old American could pay $31 per day for the same insurance policy, according to Joe Cronin, CEO of International Citizens Insurance.
“Fortunately, there are more affordable options for budget-conscious seniors,” he says.
How to lower your travel insurance premiums if you are over 60
“The easiest way to lower costs is to be Benjamin Button and get younger,” jokes Michal Wieczorek, global customer relations and intelligence specialist at Insured Nomads.
But seriously, he says you can reduce your insurance costs by choosing higher deductibles and lower medical limits. He said some insurance companies specialized in benefits for older travelers, but warned buyers to be careful.
“Read the fine print carefully, as certain benefits may be reduced or eliminated after a certain age, particularly accidental death and dismemberment benefits and evacuation benefits,” he added. Ta.
There's a difference between individual travel insurance and group insurance, adds Dan Skilken, president of Tripinsurance.com.
“Retail travel insurance is priced based on age, travel cost and length of trip,” he says. “Commercial insurance sold through cruise lines and large travel companies is not typically priced based on age.”
In other words, older travelers may be able to travel at a better price if they purchase travel insurance through a cruise line or tour operator. But even here, he added, buyers should be careful, as some of these policies lack essential coverage.
How one customer saved money on travel insurance after turning 60
Zurick says he knows the value of travel insurance and is not daunted by higher premiums.
“For me, one way to save money on travel insurance is to take out a separate medical rider that only covers the basics,” he says.
Minimum insurance covers only the essentials, such as medical care and emergency evacuation while abroad, and omits some of the other features of travel insurance, such as lost luggage and trip interruption.
There's another method Dzurick likes. He checked to see if his employer-provided insurance provided coverage.
“My previous employer recently changed its retiree insurance plan, and I found out that the new insurance applies worldwide,” he says. “Therefore, no additional compensation is required.”
Some travel insurance companies offer reduced coverage for older travelers. For example, the INF provides insurance limits of up to $250,000 for policyholders age 70 and older to alleviate traveler concerns.
“You can also take advantage of the fixed benefit option, which will reduce your payment but still provide you with evacuation benefits,” Rao points out.
Cronin said there are budget-friendly options for senior Americans traveling outside the U.S. Trawick Safe Travels USA Comprehensive Insurance and Atlas Travel Medical offer affordable options for seniors traveling in the U.S. I like it.
Another Travel Insurance Hack: Two Insurance Options
According to James Nuttall, general manager of Insabui, another way to get affordable coverage at the highest price as you age and outgrow the coverage you want is to sign up for two travel medical insurance plans. It is said that it is something to do.
“Each plan is considered secondary to the other plans and can share the burden of high-cost medical claims,” he explains.
For example, a plan that provides $250,000 worth of coverage may not be in your age group's budget. However, there may be two plans that each provide $100,000 worth of coverage.
“Please note that each plan must be from a different insurance company,” he added. “He cannot purchase only two of the same plan.”
Pro tip: If you choose this path, talk to an experienced travel advisor who knows how the two insurance policies work together.
More ways to save money on travel insurance if you're over 60
There are other ways to save money, says Daniel Durazo, director of communications at Allianz Partners USA.
Consider an annual travel insurance policy
For those planning three or more trips a year, Durazo says purchasing annual travel insurance is a smart choice. Unlike a one-time travel plan, an annual plan protects all of his trips for 365 days, saving him money over insuring each trip separately. Annual insurance may be offered at a flat rate, so the cost won't increase based on your age or travel costs.
Purchase a plan that includes more
For example, some travel insurance policies include children at no extra charge. This includes Allianz's OneTrip Prime and OneTrip Premier. Both are for her children 17 and under when traveling with a parent or grandparent.
Pay attention to trip cancellation benefits for trips to the United States
Durazo says trip cancellation benefits may cover the cost of canceling a trip if an insurance-covered situation arises. These benefits can reimburse you for prepaid, non-refundable travel expenses if you have to cancel your trip at the last minute for a covered reason. These are one of the most frequently used benefits of traveling to the United States (medical costs are often covered by health insurance plans).
If you are traveling overseas, please book a plan with benefits after departure.
Post-departure benefits start as soon as you start your trip. It could also include coverage for travel delays, lost or damaged baggage, and delayed baggage, Durazo said. Emergency medical benefits and emergency evacuation benefits may also be included and are highly recommended for international travel.
Age-based pricing is more prevalent than ever in travel insurance. If you're planning on going somewhere this summer, check out all your options before purchasing insurance.
