NCL trip insurance vs. Brand X

[ChiefMateJRK]

I'm a novice when it comes to trip insurance, but have followed several recent discussions.  This is a question specific to NCL's coverage.   I just mocked a cruise for this fall.  NCL's standard insurance is $238, including a FCC 75% cancel for any reason (CFAR).  The insurance fee would be payable upon final payment in June.  I plugged the same info into tripinsurancestore.com.  The cheapest fee for "due at final payment" insurance is $233, and doesn't include any CFAR coverage.  The NCL insurance seems like a no-brainer without further research/education.  What am I missing?  Thanks.

[Lex1]

43 minutes ago, ChiefMateJRK said:

I'm a novice when it comes to trip insurance, but have followed several recent discussions.  This is a question specific to NCL's coverage.   I just mocked a cruise for this fall.  NCL's standard insurance is $238, including a FCC 75% cancel for any reason (CFAR).  The insurance fee would be payable upon final payment in June.  I plugged the same info into tripinsurancestore.com.  The cheapest fee for "due at final payment" insurance is $233, and doesn't include any CFAR coverage.  The NCL insurance seems like a no-brainer without further research/education.  What am I missing?  Thanks.

 

If you don't want or wouldn't use an NCL FCC, then an insurance plan that will pay in cash is more useful.  I personally don't buy CFAR plans, but do get ones that will pay 100% for medical or work reasons.  In addition, since I often combine a cruise with additional travel or an extended stay in a port city (booked on my own), it makes more sense for me to cover the entire vacation rather than just the cruise portion.

[BermudaBound2014]

There are many reasons why you never want to Insure directly with a trip provider. Call and speak to Steve At tripinsurancestore  and he can explain it much better than I can. A great guy. I have been working with (and referring people to) him for over a decade. This guy knows his stuff. The insurance world is very interesting to learn about. 

[ChiefMateJRK]

8 minutes ago, Lex1 said:

If you don't want or wouldn't use an NCL FCC, then an insurance plan that will pay in cash is more useful.

Won't the NCL plans pay in cash for covered reasons?

[ChiefMateJRK]

4 minutes ago, BermudaBound2014 said:

There are many reasons why you never want to Insure directly with a trip provider.

Isn't the NCL insurance provided by a third party?  I thought it was only the CFAR fallback that was provided by NCL.

[BermudaBound2014]

1 minute ago, ChiefMateJRK said:

Isn't the NCL insurance provided by a third party?  I thought it was only the CFAR fallback that was provided by NCL.

 Yes, but there are lots of reasons why you should keel ncl out of your insurance purchase, including, but not limited to, solvency and conflict of interest. By cutting out the middle man (in this case ncl),  you can likely get better coverage cheaper. Trust me, call Steve. He loves talking insurance and he taught me soooo much. 

[Babr]

Cruise line insurance can be a good value for older cruisers because the rate is not impacted by the age of the policy holder as it is with third-party insurance. On the other hand the dollar limit for each type of risk covered is lIkely to be less in a cruise line policy. Compare the amounts for medical and evacuation in each policy. Also pay attention to the provisions in the trip delay section. That is what will pay quarantine expenses when the cruise line COVID assistance plans expire. Get the most generous benefits you can. Look at the list of reasons covered for cancellation to see which one gives you a broader range.

 

Cancel for any Reason seems to be important to you; and, indeed, it is one of the advantages of cruise line insurance. It is available as an add-on in third-party and will reimburse you in cash. If you are happy with FCC, the the cruise line policy is the winner here.

 

I’m not sure that I’d choose a policy just because it has CFAR. It depends on your situation and why you think you’ll need it. Mostly, it just allows you to change your mind.

You can buy insurance at any time. The “buy at final payment” you saw at tripinsurancestore allows a waiver for pre-existing conditions, meaning you are covered for medical regardless of previous or ongoing medical problems as long as you are able to travel on the day you buy the policy. Otherwise, those conditions could result in denial of a claim if it causes cancellation or recurs during travel. You’d still be covered for emergency care.

 

[Babr]

14 minutes ago, ChiefMateJRK said:

Won't the NCL plans pay in cash for covered reasons?

Yes

[ChiefMateJRK]

4 minutes ago, Babr said:

Cruise line insurance can be a good value for older cruisers because the rate is not impacted by the age of the policy holder as it is with third-party insurance.

Thank you.  I didn't know that.  Since I'm old, it may be a meaningful variable.

4 minutes ago, Babr said:

Cancel for any Reason seems to be important to you; and, indeed, it is one of the advantages of cruise line insurance. It is available as an add-on in third-party and will reimburse you in cash. If you are happy with FCC, the the cruise line policy is the winner here.

I like the NCL CFAR for two reasons.  1) I don't need to worry too much about all the fine print in the "real" insurance policies and 2) we expect to cruise a lot and would likely have no problem taking full advantage of the NCL FCC.

4 minutes ago, Babr said:

I’m not sure that I’d choose a policy just because it has CFAR. It depends on your situation and why you think you’ll need it. Mostly, it just allows you to change your mind.

In our situation (everybody's is different), it is highly unlikely that we would change our mind.  That said, none of us know what life will bring us, and there are many possible situations that a cruise would no longer be desirable for reasons beyond those covered by the "true" insurance policies.

4 minutes ago, Babr said:

The “buy at final payment” you saw at tripinsurancestore allows a waiver for pre-existing conditions, meaning you are covered for medical regardless of previous or ongoing medical problems as long as you are able to travel on the day you buy the policy. Otherwise, those conditions could result in denial of a claim if it causes cancellation

Yep.  That part was pretty clear.  We often sail with other family members, in other cabins, and the permutations of potential scenarios are endless.  Having a CFAR option as a fallback is very desirable, especially if as I posted in the OP it doesn't come with any meaningful additional costs.

[Babr]

12 minutes ago, ChiefMateJRK said:

Isn't the NCL insurance provided by a third party?  I thought it was only the CFAR fallback that was provided by NCL.

Yes, again. The policy is underwritten by Nationwide and administered by AON. NCL is just selling the policy under its name as a convenience for its passengers and a profit source for themselves. NCL may have some input  in the design of the policy provisions but has no responsibility for the claims.

 

The CFAR provision is a non-insurance benefit from NCL. They are just giving you a voucher for your money that they retain. That is why you have to file any cancellation with NCL insurance first. If it is denied, it goes back to Norwegian to issue FCC.

[billslowsky]

43 minutes ago, ChiefMateJRK said:

Isn't the NCL insurance provided by a third party?  I thought it was only the CFAR fallback that was provided by NCL.

Of course it is.  But some agent, protecting his own commissions, is telling people that "solvency" is a concern with NCL.

 

Travel Insurance is underwritten by Nationwide Mutual Insurance Company and Affiliated Companies, including Nationwide Life Insurance, Columbus, Ohio (NAIC #23787).

 

I am not concerned over the solvency of Nationwide.

[billslowsky]

37 minutes ago, Babr said:

I’m not sure that I’d choose a policy just because it has CFAR. It depends on your situation and why you think you’ll need it. Mostly, it just allows you to change your mind.

No, it's a catchall that includes when someone else in your party chooses not to travel for an otherwise non-covered reason.  Could be that something goes wrong at their job, or they choose to stay home to take care of another family member, or somebody's babysitter cancels.  Situations that are out of your control.

 

 

[Babr]

1 minute ago, billslowsky said:

No, it's a catchall that includes when someone else in your party chooses not to travel for an otherwise non-covered reason.  Could be that something goes wrong at their job, or they choose to stay home to take care of another family member, or somebody's babysitter cancels.  Situations that are out of your control.

 

 

You may be surprised what is covered in some third-party policies. Work reasons are commonly covered as is care for a family member as long as the policy you bought extends the pre-existing conditions waiver to non-traveling relatives. IMG even covers your service dog or a pet that is ill or gets injured and requires your care. That is why I suggested the OP read through the list of covered reasons.

 

But you are right that it is easier to just take the FCC provided by CFAR. Can’t miss doing that.

[ChiefMateJRK]

10 minutes ago, Babr said:

That is why I suggested the OP read through the list of covered reasons.

 

But you are right that it is easier to just take the FCC provided by CFAR. Can’t miss doing that.

Thanks.  I did invest some time reading through the list of covered reasons for both options outlined in the OP.  They appeared very similar.  That said, life is too short (and growing shorter by the hour).  A catch all CFAR backup is just easier and, in the OP example, essentially free.  I was expecting an obvious "here's what you're missing @ChiefMateJRK " when I posted the OP.  So far, we haven't seen that.  Perhaps we will.  The thread is young.

 

In some scenarios, it will come down to a) make a final payment but pay for the NCL insurance in case we need to cancel or b) just wait and book it a month or two before sailing when life will have much less time to throw curve balls.  In the past, and hopefully in the future, life was more predictable.  However, as many/most know, life sometimes has its "moments."

[BermudaBound2014]

39 minutes ago, billslowsky said:

Of course it is.  But some agent, protecting his own commissions, is telling people that "solvency" is a concern with NCL.

 

Travel Insurance is underwritten by Nationwide Mutual Insurance Company and Affiliated Companies, including Nationwide Life Insurance, Columbus, Ohio (NAIC #23787).

 

I am not concerned over the solvency of Nationwide.

I’m not an agent, nor do I play one on Cc, but a quick google search turned up this. I can’t speak for that sites accuracy, but If I were buying insurance right now I sure would want to see that part in writing.

[Babr]

26 minutes ago, ChiefMateJRK said:

Thanks.  I did invest some time reading through the list of covered reasons for both options outlined in the OP.  They appeared very similar.  That said, life is too short (and growing shorter by the hour).  A catch all CFAR backup is just easier and, in the OP example, essentially free.  I was expecting an obvious "here's what you're missing @ChiefMateJRK " when I posted the OP.  So far, we haven't seen that.  Perhaps we will.  The thread is young.

 

In some scenarios, it will come down to a) make a final payment but pay for the NCL insurance in case we need to cancel or b) just wait and book it a month or two before sailing when life will have much less time to throw curve balls.  In the past, and hopefully in the future, life was more predictable.  However, as many/most know, life sometimes has its "moments."

Many people disparage cruise line insurance because the dollar limits are low. For the Standard plan, medical is $20,000; evacuation is $25,000. The Platinum plan doubles evacuation to $50,000. A third-party plan based on a search at the same site you used reveals plans with medical limits from $50,000 to $100,000. Evacuation ranges fro $250,000 to $1,000,000.

 

Trip delay for NCL is $500. That won’t go very far if you need it for quarantine expenses when NCL no longer provides COVID assistance. Third-party provides from $750 to $2,500 per person.

 

So that is what you are missing - or maybe not. It depends on your needs, where you are traveling, how long you’ll be gone, your health condition, your risk tolerance. NCL can be a good value. The main thing is to understand the policy and know what it will and will not do for you so there are no nasty surprises if you have to file a claim.

[julig22]

If you plan to do a number of cruises, you might consider an annual plan to see how it fits your needs.  If I remember correctly, the cfar provision isn't tremendous but that was my choice - I could have increased the amount but I prefer to be self-insured and assume more risk in that area.  So I get an annual policy, figure if I max it out I can get something else later.  Cancellation terms are per year, most other coverage is per trip.

[njhorseman]

1 hour ago, billslowsky said:

Of course it is.  But some agent, protecting his own commissions, is telling people that "solvency" is a concern with NCL.

 

Travel Insurance is underwritten by Nationwide Mutual Insurance Company and Affiliated Companies, including Nationwide Life Insurance, Columbus, Ohio (NAIC #23787).

 

I am not concerned over the solvency of Nationwide.

It's not Nationwide's solvency that's the issue it's NCL's solvency. I've never seen a cruise line's policy that covers insolvency of the cruise line, but many if not most independently issued policies do.

[billslowsky]

20 minutes ago, njhorseman said:

It's not Nationwide's solvency that's the issue it's NCL's solvency. I've never seen a cruise line's policy that covers insolvency of the cruise line, but many if not most independently issued policies 

NCL's solvency risk doesn't affect Nationwide any more or less than other insurers.

[billslowsky]

1 hour ago, BermudaBound2014 said:

I’m not an agent, nor do I play one on Cc, but a quick google search turned up this. I can’t speak for that sites accuracy, but If I were buying insurance right now I sure would want to see that part in writing.

Aardy is another insurance sales site.  Shocking that they would advocate buying from themselves.

[njhorseman]

2 minutes ago, billslowsky said:

NCL's solvency risk doesn't affect Nationwide any more or less than other insurers.

You still don't understand. The "NCL" policy underwritten by Nationwide will not cover you if NCL defaults, but many if not most independent policies will...probably including some issued by Nationwide.

[BermudaBound2014]

3 minutes ago, billslowsky said:

Aardy is another insurance sales site.  Shocking that they would advocate buying from themselves.

I believe you may be misinformed. From what I can tell, this is an issue with NCL not including default on the policy they speciticAlly sell you. I
 

Can you (or anyone really) show us where Insurance sold by NCL includes default? I provided a site indicating it does not, but I am no expert here. 
 

By chance, are you a travel agent? I do know that travel agents and PCCs get nice kickbacks on selling the ncl policy. 
 

 

[njhorseman]

1 minute ago, BermudaBound2014 said:

I believe you may be misinformed. From what I can tell, this is an issue with NCL not including default on the policy they speciticAlly sell you. I
 

Can you (or anyone really) show us where Insurance sold by NCL includes default? I provided a site indicating it does not, but I am no expert here. 
 

By chance, are you a travel agent? I do know that travel agents and PCCs get nice kickbacks on selling the ncl policy. 
 

 

I spent many years as an executive in the insurance industry and also owned a travel agency for a few years. 

I just read NCL's top of the line policy, their Platinum Plan, to refresh my memory and indeed just as I recalled, it only provides benefits for named covered reasons, and financial default by the travel supplier, NCL, is not one of the covered reasons.

An additional shortcoming of this and other cruise line policies is that the preexisting condition exclusion can't be waived. In many privately issued policies purchase of the policy within a specified time after paying your deposit, usually 10 to 15 days, waives the preexisting condition exclusion. 

[Turtles06]

12 minutes ago, njhorseman said:

An additional shortcoming of this and other cruise line policies is that the preexisting condition exclusion can't be waived. In many privately issued policies purchase of the policy within a specified time after paying your deposit, usually 10 to 15 days, waives the preexisting condition exclusion. 

 

This is an extremely important point.   

[billslowsky]

25 minutes ago, BermudaBound2014 said:

I believe you may be misinformed. From what I can tell, this is an issue with NCL not including default on the policy they speciticAlly sell you. I
 

Can you (or anyone really) show us where Insurance sold by NCL includes default? I provided a site indicating it does not, but I am no expert here. 
 

By chance, are you a travel agent? I do know that travel agents and PCCs get nice kickbacks on selling the ncl policy. 
 

 

Not an agent of any kind.  Nice try, smear someone you don't agree with.  That's it, I must be getting some kind of kickback from NCL.

 

Sheesh.  You go ahead and believe the agent you quote from - who is getting paid to advocate AGAINST buying through NCL.

 

"I provided a site indicating ..."  but have no idea if it's true or not.