insurance iq
Subtraction by Addition
you can now lower your travel medical
insurance cost upfront by adding a deductible
By Bonnie staring
Packing the essentials —comfortable
walking shoes, sunglasses, your lucky
golf socks—is a must when you travel.
Another prerequisite for a worry-free
trip? A travel medical insurance plan.
“People may hesitate to purchase
travel medical insurance because of the
cost,” says Pam Murray, insurance sales
manager at AMA Travel. “But without
coverage, even if you’re just in another
Canadian province, you could end up
spending thousands of dollars if an
unexpected illness or accident occurs.”
According to a 2013 study by the
National Institutes of Health in the
United States, a simple trip to a U.S.
emergency room can cost between
$1,000 and $2,000 USD. Recent AMA
Travel claims have included a back
surgery with 10-day hospital stay in
South Dakota that rang in at $250,000,
and an angioplasty plus single stent
insertion in Mexico that resulted in a
$184,000 bill. Those are not the kind
of souvenirs you want to bring home.
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Fall 2017
AMA insideR
Protecting yourself from these costs
is now more affordable: You can reduce
your premium by adding a deductible to
certain insurance policies from AMA.
How to decrease your premium
Depending on how much of a deductible
you’re willing to take on, it’s possible
to lower the premium on some plans
by up to 45 percent. (Check with your
AMA Travel counsellor to learn which
plans are eligible.) Here’s how much
you can save on AMA travel medical
insurance:
Deductible
(USD)
$500
$1,000
$3,000
$5,000
$10,000
$25,000
$50,000
Premium
Savings
15%
20%
25%
30%
35%
40%
45%
How your deductible works
In the event of an illness or accident,
you must pay the deductible amount
at the hospital or care facility. For exam-
ple, if your spouse breaks a leg, the
hospital will contact AMA Assistance,
which then informs the hospital of your
deductible—let’s say it’s $5,000 USD.
“You need to be able to access that
$5,000 right away,” Murray says. “It’s not
a case of raising the $5,000 or getting
it out of your RRSP.’” Keep this in mind
when determining which deductible
amount is right for your needs.
Murray says that many of her well-
travelled clients carry a credit card in
U.S. funds for that purpose, with a limit
equal to the amount of their insurance
deductible. They know they’ll have the
deductible amount available, but the
hospital won’t be able to charge further
amounts that their AMA policy covers.
“In the event of an emergency, call
911,” Murray advises. “But if your med-
ical need is less urgent, call us at AMA
Assistance. The number is on the back
of your insurance wallet card and on
the policy. We know the facilities in the
area and know where you should go for
proper care. Let us help you. After all,
that’s what you’ve paid for.”
For more information and a free quote:
aMaTravel.ca/Travelinsurance or call
1-866-989-6595
Murray says long-term travellers—
such as snowbirds, people taking an
extended trip to visit family, or adven-
turers on the trek of a lifetime—will
benefit most by adding a deductible,
since your age and the length of your
trip are significant factors in the cost
of insuring any out-of-province travel.
Deductibles can be added to single-
and multi-trip plans and top-ups. Pack-
aged plans, however, are not included.
In the case of top-ups, the deductible
amount must be equal to or greater
than the amount of the multi-trip plan
being topped up.
Also of note: While AMA travel med-
ical insurance premiums are charged
in Canadian dollars, Murray says your
deductible is payable in U.S. dollars or
the equivalent Canadian amount.