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Learning Centre

Travel with Peace of Mind

By: Lisa Mikhael CFP

If you are like many Canadians, you may be looking to escape our cold winter weather for warmer climates this March. In preparation for your week or two in paradise, you've booked the hotel, purchased your airline tickets and packed your swimsuit and summer attire; you're all set to go. Or are you? When planning a getaway, you probably intend to relax and leave all your cares behind. So chances are you may not want to dwell on things that might go wrong on your vacation. But things can and do go amiss when travelling and it is prudent and wise to be prepared for the unexpected.

Potential problems to consider when travelling outside of Canada range from the inconvenience of losing your luggage to requiring medical attention at a time when you do not have access to the Canadian health care system. Without the proper protection in place, these misfortunes can be very costly. Fortunately, it is very easy and cost effective to obtain travel insurance to cover these and other potential mishaps.

Prior to researching stand-alone plans, ascertain whether you already have some or all of the coverage you require. The first place to look is in your employee group plan. Most group health plans contain provisions to assist their members should they require emergency medical attention while travelling. If you belong to an association, they are also likely to offer something in the way of travel insurance. Also, some credit card companies offer this coverage as part of their benefits to cardholders. If, after verifying all of these sources, you still find that you are not sufficiently covered, seek out the advice of your financial planner to help you understand your various options and narrow your search.

When determining the appropriate coverage for your particular circumstances, look for the following features typical of most travel insurance plans:

• Trip Cancellation and Interruption - This coverage will allow you to recover the non-refundable expenses incurred if you cannot take your trip as planned or if it is interrupted due to injury or sudden illness.
• Lost Baggage - This benefit covers the delay, loss of, or damage to your luggage up to a certain limit.
• Emergency Medical - This coverage will pay for expenses incurred for hospitalization and medical services required due to an accident or sudden illness while travelling.
• Accidental Death and Dismemberment - This benefit covers you in the case of accidental death or the loss of use of one or more limbs due to an accident while travelling.
• Travel Assistance - A toll-free number connects you to the company's agents who will assist you in finding a nearby hospital, doctor or clinic; an interpreter where there is a language barrier; a referral to legal counsel if required; or assistance in the event of lost or stolen passports or credit cards.

Travel insurance plans vary widely in terms of the coverage offered and so be sure to examine the policy fully to understand its conditions and limitations. Your financial planner can help you with a comparison of plans, as well as obtain quotes and even arrange for coverage on your behalf.

So before you board that plane, take the time now to ensure you have the proper coverage in place, allowing you to truly leave all your cares behind!