Financial Advisor

As millions of Canadians hit the roads and book flights to criss-cross the globe for the holidays, an alarming percentage don’t fully understand key aspects of their insurance coverage or their need for out of province travel insurance. An accident can happen to anyone, even during a short business or recreational trip. Some health services are not insured by the province and you may have to pay the full costs for those services.  Many health services outside Canada cost much more than coverage by OHIP, and you are responsible for any difference in cost.  Let’s take a closer look….

OHIP will pay very limited amounts for physician services and hospital facility services if certain conditions are met. OHIP will only pay for insured, emergency out-of-country health services that are rendered to an insured person.  To qualify as an ‘emergency’ there are a number of criteria that must be satisfied.  The treatment must be medically necessary, and the treatment must be performed at a licensed hospital or licensed health facility, and the treatment must be rendered in relation to an illness, disease, condition or injury that is acute and unexpected, and arose outside of Canada, and requires immediate treatment.  A lot of “ands” I know, let’s take a look at what they won’t cover.

OHIP does not cover treatment that is not medically necessary, health services that are completed at a facility that is not a licensed hospital, treatment that is generally accepted as being experimental, treatment rendered for an illness or injury that arose inside Canada or ambulance services/transportation costs.  That last one can be a real burden.

Back in Canada, your provincial health insurance plan looks after your hospital and medical expenses and you rarely see a bill. But, once you travel outside of Canada or even outside of your own province, coverage under your provincial plan is limited, and only some of these expenses may be covered. The good news is that the difference can be made up by travel health insurance.

Travel health insurance is designed to pay for certain unexpected costs that may arise when

you are traveling. These can include emergency hospital/medical costs, trip cancellation, lost baggage and accidental death insurance. But, not all plans cover all of these components.

For instance, the trip cancellation insurance you buy when you book your holiday may not include health insurance. Be sure you understand what protection you are buying, and whether it meets your specific needs.

When purchasing travel insurance there are a few key questions you should ask, such as:

• Will your policy cover you for the entire length of your trip from Canada or your home province? If you decide to extend the length of your stay, can your policy be extended? How would this be done?
• What types of restrictions and limitations does this policy have?
• Does your policy deny any benefits if your medical emergency arises because of a pre-existing condition?
• Are there exclusions about specific activities/events i.e., sports, war, suicide, substance abuse?
• What maximums, deductibles and/or co-insurance would apply in the event of a claim?
• Does your policy pay for emergency return home?
• If you are traveling with family or friends, does each individual need a separate policy, or can one policy cover everyone?
• Are there certain countries that are not covered under the policy?
• Does your policy provide for trip cancellation, baggage loss and other damages?
• If you have out-of-country coverage through your group plan at work, are there any restrictions? Does it cover you for business travel only?

So where can you find travel insurance? Well there are a number of places you can go, such as you credit card company or through you group health insurance.  But it is generally recommended that you talk to your insurance advisor or broker to guarantee you get proper coverage customized to cover all of your travel insurance needs.  So whether it is a day out of the province or a year out of country, make sure you’re protected with travel insurance.

Adam Myers

Financial Advisor

Professionals for Independent Planning

Email: adam@pfip.ca

Phone: 613-224-5511   X108

www.pfip.ca