1. Travel Insurance Options for South America
There are many reasons one may need travel insurance. Consider visiting South America. Perhaps you’re there for only a short stay or it’s a longer visit; you might be a backpacker, a businessman, a family man, a preacher or on a mission. From the shores of Mexico to the icy tip of Chile, the continent is vast and geographically diverse.
Depending on your interests, you might be mountain climbing and white water rafting, bird watching or archaeological exploring. And then there’s the unexpected. A friend of mine, in Ecuador on a short-term medical mission, was bitten by a dog and contracted rabies. In his case, pet owner liability through his homeowner’s insurance covered his care, but he might not have been so lucky. Travel in South America is by nature more unpredictable than a visit to say, Disney World. Travel insurance can help manage some of that risk.
1.1. Importance of Travel Insurance
South America is one of the worst regions for flight disruptions, with more than 1 in 3 flights delayed by at least 15 minutes. Delays can lead to missed connecting flights and cause travelers to abandon their trips altogether. Most trips to South America aren’t simple, involving internal flights, hiking, white water rafting, and other activities that are typically not covered by standard insurance policies.
High altitude trekking (e.g. on the Inca Trail) and adventure sports carry a risk of accident or injury. An accident in a remote location could result in substantial evacuation and medical bills. Travelers have been injured and required medical treatment including major surgery. This can wipe out savings and result in financial hardship for families.
Finally, South America is not without health risks. Anyone traveling to Africa, Central or South America, the Indian subcontinent, or remote and rural areas in East and Southern Europe should consider a typhoid vaccination. Failure to get vaccinations and take other health precautions could result in illness and the need for medical treatment. Having the right insurance could make a world of difference in any of these scenarios. 75% of all travel policies arranged by UK travelers now cover 2 or more trips. If UK travelers are planning more than one trip this year, taking an annual multi-trip could save time and money.
1.2. Types of Travel Insurance Policies
When considering travel insurance, it is important to understand what type of policy best suits your needs. This is essential because not all policies are equal and only when you know what you generally require and what is available will you be able to make an informed decision. Most insurance companies offer the same type of policies but researchers (such as Which?) have identified some common types of policy based on specific requirements and these can vary between companies.
It is likely that an annual multi-trip policy may be the best option for you as this type of policy can offer you unlimited travel within a specified time frame. An annual policy may give you more flexibility as you may not know exactly when your trip may end and this way you will not find yourself without cover. This type of policy is beneficial to anyone taking more than one trip leaving time between each one. However, locate the policy details to check what is classified as a trip and how long you have between each trip, as these conditions can change between companies.
1.3. Factors to Consider when Choosing Travel Insurance
Factors to consider
When you are considering a travel insurance policy, be sure you choose one that will adequately protect you abroad. Take a look at the following factors:
– Cover for overseas medical treatment and hospital costs. Medical treatment overseas can be very expensive. If you fall ill or are injured whilst on holiday, the last thing you want to worry about is the cost of medical treatment. Make sure your policy will cover you for all eventualities, including a visit to a private clinic or hospital, medical treatment, diagnostic tests and prescription drugs.
It is also a good idea to find a policy that will provide cover for the treatment of pre-existing medical conditions that may occur whilst you are abroad. This way, you will be able to access long term medical conditions treatment without having to interrupt any treatment in the UK and, should the need arise, you will be able to recuperate at home with your family and friends.
– If you are an adventure enthusiast you may require cover for activities that are generally excluded from standard travel insurance policies. Getaway provides optional cover for a wide range of adventure sports and activities such as bungee jumping, sky diving, white water rafting and scuba diving. Our activity packs can be added to your policy and will provide cover for a range of activities. Please note that Getaway’s activity packs are only available to customers aged under 50.
2. Coverage Options insurance in South America
Trip cancellation and interruption coverage is also an important consideration. One important thing to know is the timeframe when the coverage is in force. Usually, there is a limitation that the coverage will only be in force if the policy is bought within 7 – 21 days after the initial trip deposit. Pre-existing conditions are sometimes included as the cause of trip cancellation; it’s important to know whether an earlier medical condition must be stable at the time of buying the policy or not, to avoid misconceptions that lead to no coverage.
The cost for a policy with trip cancellation and interruption coverage, which can cover a cost of around $3,000 – $4,000 for a trip to South America as an example, is almost the same as medical expense coverage, around $40 – $50 per month for travelers aged around 30 years.
Medical expense coverage should be the most important consideration when choosing travel insurance. Travelers may get sick or injured while they are in South America. It’s important to know whether this coverage is primary or secondary. Primary coverage means the insurance pays a covered amount regardless of whether other insurance is available or not, while secondary coverage will only pay the insured person after the other insurance available has paid the covered amount.
Usually, secondary coverage is a bit cheaper with a smaller covered amount. It costs around $40 – $50 per month for travelers aged around 30 years, for a plan with a $50,000 covered amount. The cost varies between insurance companies and depends on the age of the travelers.
2.1. Medical Expenses Coverage
Remember, health care systems and customs vary greatly by country, and your domestic coverage may not be sufficient or have cashless arrangements in place in case of emergency. When evaluating a policy that covers medical expenses, the first question you should ask is if the insurance company has a 24-hour collect telephone number in the country where you are traveling and in the US on which a multilingual service representative is available. By calling this number and having a representative assist you, you can be sure you will be going to a facility that is approved by your insurer and your claim will be dealt with on a cashless basis.
Failure to do this in a serious medical emergency can be a huge, costly, and sometimes life-threatening mistake. This is because all travel insurance companies have a medical necessity clause written into their policies. This clause means that the company can decide a more advanced treatment or a medical evacuation is not necessary and not be obligated to pay for your request. By refusing to take accepted US standards of payment and care, a travel insurance policy that works on a reimbursement basis can leave you with a medical bill that your domestic coverage or financial situation will be unable to resolve.
Recommended coverage for emergency medical and dental care to relieve pain, and expenses for prescription drugs often has a low deductible to satisfy and fairly comprehensive benefits. Benefits for evolving treatments like acupuncture and chiropractic are usually not worldwide and emergency air and ground ambulance costs are often covered at an 80% to 100% rate. Emergency dental treatment coverage is important because unlike the US, you may only have one opportunity to receive quality dental care in the course of a lifetime.
Finally, be sure to understand if the policy has coverage caps and limitations and also a condition that states the medical coverage is secondary to any other valid and collectible insurance, meaning the travel insurer is only obligated to pay excess amounts not covered by another insurer.
2.2. Trip Cancellation and Interruption Coverage
Trip Cancellation and Interruption is a good coverage option, particularly if you are traveling to a volatile area or have an existing medical condition. If these are not concerns, it may be in your best interest to buy a travel insurance plan with a stronger focus on the other 3 categories.
The Trip Cancellation portion is in effect from the day the plan is purchased. All Trip Cancellation claims must be substantiated by a written physician’s statement that clarifies the reason for cancellation. For a complete description of coverage, be sure to read the policy explanation that your insurance provider will send you after purchasing a plan.
This coverage reimburses you for non-refundable trip payments and deposits if a trip is canceled or interrupted. Trip cancellations are often a result of unexpected illness, injury, or death in the family, while trip interruptions can be caused by anything from inclement weather to a missed flight.
2.3. Baggage and Personal Belongings Coverage
This coverage is meant to provide you with compensation in the event that your personal belongings are lost, stolen or damaged during your trip. Many South American countries are famous for their pickpockets and petty theft toward tourists. The coverage is recommended if you are traveling with items of value such as jewelry, cameras, binoculars or laptops but it’s also relevant to those traveling with a lot of baggage. Taking out coverage for baggage could provide useful compensation in the event baggage is delayed, which is an all too common problem in travel to/from South America.
This can often provide specific compensation per day, generally with a maximum. If baggage is considered lost after a set period, say 21 days, airlines are required to compensate travelers although you may find this is somewhat of a drawn out task. Normally compensation from the insurance company itself is on a new for old basis and will not cause any increase in premium.
2.4. Emergency Assistance Services
Should you require medical evacuation to the nearest hospital where adequate facilities are available, this will often be covered by standard travel insurance policies. This is usually provided on the advice of the assistance medical staff or in the instance of non-preauthorized treatment. Usually, the costs are covered if it is a life-threatening or a serious condition. However, those engaging in sports or high-risk activities should check the fine print as these are often excluded.
Emergency repatriation is best defined as the reasonable costs incurred to move the patient to another place of treatment or to return the patient to a hospital near their home. Ensure that this is covered as often it can be the only avenue to receiving treatment of an adequate level in certain areas.
Travellers to South America should ensure that their policy includes a 24-hour assistance hotline and that they have access to immediate medical intervention. This can be critical in some areas. The quality of assistance services can vary greatly between providers, so ensuring that it is comprehensive is a must. If you are particularly worried about safety in any of the regions that you will be visiting, it is also worthwhile to investigate whether assistance with crisis management, support, and relocation in the case of a security emergency is available.
Emergency assistance services tend to be either the cornerstone or an afterthought for South America travel insurance. Considering the prevalence of kidnap and extortion risks in some South American countries, coupled with the high cost of medical care, should you require hospitalization as a result of a serious injury sustained while on holiday.
3. Comparison of Insurance Providers
Costs can vary widely between different insurance carriers. You will need to decide whether price is your number one concern or if you want a balanced combination of price and coverage. If you are going with the cheapest insurance you can find, you may end up paying for it in the long run if you need to make a claim and the coverage isn’t adequate.
In this case, you will need to make sure that you are comparing apples to apples on the coverage amounts. If you find an insurance plan with excellent coverage, it may be worth a few extra dollars in premium to also have peace of mind, knowing that your claim likelihood and amount of potential reimbursement on a loss is higher.
So the question becomes, how do you find an insurance policy with the right balance between price and coverage?
Unfortunately, this isn’t as easy as comparing apples to apples. More likely, it will be like comparing apples to oranges and a wide variety of other fruits. A good place to start is by searching for travel insurance comparison websites. At these websites, you can get quotes for both very basic and very comprehensive insurance coverage from a wide variety of carriers. These websites are a great tool to quickly find the best value for the coverage you’re looking for. It will save you from having to visit the websites of 10-15 individual insurance carriers to find out whether they may have a suitable insurance plan. This is a convenient, efficient, and relatively cost-effective method for comparing insurance providers.
If you have no previous medical conditions and are in good health, it may also be worth your time to obtain a quote for insurance from an international carrier who provides travel insurance to South America. A brand name insurance carrier such as this may still offer competitive rates for a similar plan compared to a local South American insurance company. High competition between these large carriers can sometimes drive the price of insurance down for World Nomads Americans Standard with similar coverage limits.
The same method can be applied to the type of trip in terms of obtaining quotes from different insurance carriers. In this case, the type of trip would refer specifically to whether you will be partaking in adventurous activities. By obtaining quotes from various companies, you can find out whether the price of insurance will differ for the sole reason of hiking to Machu Picchu or taking a guided mountain climbing trip. Overall, thorough and thoughtful comparison of costs between various insurance carriers is the first step in finding the best insurance provider for your trip to South America.
3.1. Cost and Premiums
Cost of travel insurance is largely seen as the most important factor in choosing an insurance policy. How much the individual is going to pay for their insurance, and what is included in the cover is a major concern. The individual should be aware of if the policy is an all inclusive policy, or if it is ‘medical only’ cover. ‘Medical only’ insurance means that the only thing that is covered is medical bills during an illness or accident overseas, while an all inclusive policy will have a higher premium, but higher coverage for a range of circumstances. Prices for insurance can vary dramatically between insurance companies.
Usually, higher premiums are reflective of higher coverage and better quality services. Websites such as Travel Insurance Review offer comparison tables to help customers decide which insurance is right for their trip. It is always best to obtain a quote from an insurance company.
3.2. Coverage Limits and Exclusions
Most travel insurance plans feature a customer service and claims line, available 24 hours a day, seven days a week, to answer questions and assist you in case of an emergency. These plans can also provide assistance with pre-travel information, emergency cash transfers, replacement of lost travel documents, and more. Plans with comprehensive coverage may offer more features to better protect you and your travel investment. Be sure to read the policy thoroughly to know what you are purchasing. When it comes to travel insurance, cost may not be the only factor in choosing a plan because some plans do not cover certain losses, and others have coverage limits.
Coverage limits and exclusions are really where your travel insurance plan is put to the test. When shopping for plans, it would be best to have a general idea of the total cost of your trip as well as the nonrefundable deposits paid—at times, you may also need to account for the trip cost of a travel companion. This will all be used to compare with the benefits offered on various plans. Step by step, review the essential benefits of trip cancellation, trip interruption, and trip delay, and remember to compare plans offering primary and secondary coverage.
Exclusions to a plan refer to a list of circumstances or events where benefits will not be paid. Be sure to read this carefully, for it can vary from circumstance to circumstance, sometimes leaving only a specific event of that circumstance covered. If an exclusion directly affects your trip, it may serve as a reason to consider another plan. Should all terms be satisfactory, some plans do allow you to cancel outside of a set number of days from the effective date and receive a refund through a free look period.
3.3. Customer Reviews and Ratings
MedjetAssist seems to appeal to the fears of travelers. One of the main reasons people purchase travel insurance coverage is because they are afraid of a potential illness or accident. According to reviews, MedjetAssist goes above and beyond focusing on common travel accidents and unexpected illnesses; their specialty is arranging medical transport for hospitalized travelers anywhere in the world to the hospital they choose.
While it may not be the elevator pitch of their service, they certainly deliver a sense of security. One customer testimonial reads: “I can’t believe I’ve been traveling without your service. You all are wonderful; many thanks. I have to spread the word to my friends and am grateful indeed I will offer them some peace of mind by buying Medjet next time they travel.”
Allianz Travel Insurance, MedjetAssist, and Travel Guard insurance providers all have positive aspects about their insurance plans for a South American vacation. The strong suit of Allianz is found in their customer service; when talking with an Allianz representative, they are very informative and helpful. According to their website, they offer round-the-clock assistance for their customers so the accessibility is certainly there. As for the customers, they seem to be very satisfied. The most apparent positive aspect of Allianz Travel Insurance is found in this customer testimonial: “I felt it was absolutely necessary to write you all and thank you for the prompt, efficient and most of all, compassionate way that my claim was handled.”
4. Tips for Buying Travel Insurance in Peru
Reading the policy fine print
Understanding the fine print of an insurance policy before making a purchase is essential. Even if you have found a policy that seems to provide what you require, it is likely that limitations and exclusions will apply. Be sure that you understand what is and what is not covered. Pre-existing medical conditions are generally not covered unless a premium is paid to cover them.
High-risk activities such as paragliding, bungee jumping, and scuba diving may not be covered. The policy may have limitations on the duration of coverage and the amount of individual trip coverage. You should also take note of the claims procedures including the documentation required and the time frame in which a claim must be lodged from the date of an incident.
Cheap insurance may only cover the basics (which may be all you require), or only cover up to a certain amount for your gear or for cancellation of your trip. A higher premium may be required for more extensive coverage.
Assessing your travel needs
This is the most important first step in determining the type of travel insurance you require. Do you have a medical condition that requires regular medication, treatment, or are likely to be seeking medical treatment whilst in South America? If so, you would require medical coverage. Are you taking expensive camera or sports equipment? Would you be devastated if you didn’t get to see the Inca ruins or trek the Inca Trail in Peru?
4.1. Assessing Your Travel Needs
Travellers have varying needs when it comes to travel insurance. Often, the more experience they have, the more coverage they need. However, an individual taking their first overseas trip and unsure of what the travel insurance covers will require a different kind of protection. People who are travelling with elders or those who are underinsured have specific needs for cancellation, luggage, and pre-existing medical condition coverage. A longer stay abroad may require a policy that includes some element of long-term disability, while a flight-only traveller may only need a policy that includes emergency medical and medical evacuation coverage.
All too often, people may think they’re indestructible and skip taking any kind of travel insurance. However, what they are really doing is taking an enormous risk. They might save a few dollars in the short term, but if they do end up needing medical emergency or evacuation, it can cost them a lot more than money in the end. By assessing your travel needs prior to shopping for travel insurance, you can save a lot of time and get the exact coverage you require for a trouble-free overseas trip.
4.2. Reading the Policy Fine Print
As with any insurance policy, the contract is the basis on which the insurance protection is provided. Be sure to read the policy and make sure you understand what is covered, what is excluded, and the deductibles that may apply. The contract will provide specific information about the scope of coverage, the exclusions (things that are not covered), and the limitations of your insurance policy. If you have a pre-existing medical condition, make sure the policy covers that condition.
See if there is a maximum amount the insurance company will pay for a medical condition. Make sure the policy provides a 24-hour emergency hotline. This can be crucial if you need medical assistance. The insurance company will often have a direct billing arrangement with larger medical institutions.Another essential consideration is the type of travel insurance to buy. Two of the most popular insurance products are packaged plans and travel medical plans. A packaged plan is ideal for those seeking to do a long-term travel of a specified duration.
It provides a combination of several types of coverage into a single plan designed for a comprehensive solution. Package plans can save time and money due to the fact it is an all-in-one plan. A travel medical plan is most suitable for individuals seeking coverage for travel outside of their home country, which provides a specific focus on medical and evacuation coverage. This type of plan is preferred by such travelers because of the improved focus on medical benefits. Other forms of insurance are often overlapped with various types of redundant coverage, and the emergency medical focus of travel medical plans provides a clear advantage for this type of travel.
4.3. Seeking Professional Advice
The final tip is seeking professional advice. Follow advice 4.1 and list down your requirements from a policy. In that way, when the time comes to discuss with an insurance advisor, you will be ready and informed about what you want to get out of your insurance policy. When trying to find out more advice on travel insurance, visit a forum or a community where real persons comment on their experiences.
You can then ask using the same requirements you listed about what policy they had and how it worked for them. If you don’t yet have insurance, still ask people about their travel experiences and what worked for them. Usually, they will reply with a positive and negative, and you can line this up with what you had previously written down.
Eventually, you will have to go see an insurance advisor, generally being those who work for a certain company or those who offer all types of insurances. Keep in mind that they may have a certain predisposition to a policy and will try to sell you on it. Therefore, it’s good to show them what you have listed down and say, “I have done some research and want a policy which covers this.” Ask if they have a policy that will most probably give you what you want, but if their policy is better! It’s good to clarify and go with confidence into maximizing the amount of knowledge you will get from these meetings.
4.4. Making an Informed Decision
• Making an informed decision
Now that you have assessed your needs, read the policy fine print, and done your research, it’s time to make a decision about travel insurance. You’ve discovered the purpose of insurance, learned what to look for in a policy, and what to ask, but before making a decision, there is one important step. You must analyze the travel insurance options that are available on the market. There are several insurers and different products, and to make an informed decision, you will need to gather information on these insurance companies and their products.
Information on travel insurance is commonly available from these sources: internet, your travel agent, insurance companies, and medical facilities. Be careful to only consider information that is provided by objective sources. Don’t solely rely on only one source of information – ask several questions and confirm the reliability of information you are gathering by checking it from several sources. If you are unable to find information or if you are unsure about the quality of information provided to you, you can seek professional advice.
