Are there any negatives about buying an annual plan?

[jennas_mum]

I have 6 cruises coming up in the next year. Is there anything I should be worried about if I purchase an annual plan? 

 

Thanks, 

 

Donna

[GeezerCouple]

17 minutes ago, jennas_mum said:

I have 6 cruises coming up in the next year. Is there anything I should be worried about if I purchase an annual plan? 

 

Thanks, 

 

Donna

For ANY travel insurance policy, make sure you understand the terms and conditions.

 

With annual plans, also pay special attention to things that might be different from getting separate "per-trip" policies.  Some things to check include (this is NOT a complete list) how pre-existing medical conditions are handled, and also the total amount of coverage available for the entire year. You wouldn't want to run out while there are still trips pending, especially if it might be too late on short notice to get suitable per-trip coverage, etc.

 

GC

[CDNPolar]

We have for the past few years bought an annual plan and saved LOTS of money, but that savings comes with some financial risk.

 

I know that my experience is with Canadian insurance and it can differ from US insurance, but what I have learned with annual plans is this:

 

(Remember these are Canadian conditions that may or may not exist with your annual plan, so ask the questions of your insurance provider.)

 

1) The annual plan we are with now, has a limit of $5,000.00 per person cancellation, but we can have as many 17 day trips in the year as we like and each one is covered, but only to that $5K per person.  So, I could end up cancelling 2 trips and get back $10,000.00 per person, or 3 trips and get back $15,000.00 per person if the cancellation was for a covered reason.

2) We can choose when buying the annual plan between 17 day trips or 30 day trips and if a trip extends past what we have purchased we can purchase an add on package for the extra days.

 

Some of our trips are more than $5,000.00 per person and so we are hedging the penalties and banking on the fact that unless our need to cancel is extremely last minute, we will come out even, or only a slight cost to us.

 

For instance, if we were to go on three cruises and insure them separately we would pay about $4,500.00 for the three policies combined.  With this annual plan we are paying $1,300.00 total.  So there is financial risk, but we are willing to take that.

 

SOME POLICIES that I have investigated let you designate a total amount of coverage that you want over the year for multiple trips.  These policies see that coverage level as a "bucket" and once you have claimed against that then there is no insurance left.  So, if you had a serious incident come up and you made a claim, you may not have coverage for other trips in that year.  I find theae policies to be as expensive as purchasing for individual trips.

 

PRE-EXISTING CONDITIONS:  With my annual policy, pre-existing conditions are dealt with by each individual trip in the year.  If I need to cancel a trip for a covered reason that is medical, and that medical reason relates to a pre-existing condition, then the pre-existing condition must have been stable for 3 months prior to the trip departure date.  If I am to claim for medical assistance while on a trip and that medical assistance is in relation to a pre-existing condition then that pre-existing condition must have been stable for 6 months prior to the trip departure date.  All other covered reasons are clear cut, it is just the pre-existing conditions that are a concern to us on the annual plan.

 

Some or all of these things may or may not relate to a policy that you are looking at but they are all things to consider with your provider.

[jennas_mum]

17 hours ago, GeezerCouple said:

For ANY travel insurance policy, make sure you understand the terms and conditions.

 

With annual plans, also pay special attention to things that might be different from getting separate "per-trip" policies.  Some things to check include (this is NOT a complete list) how pre-existing medical conditions are handled, and also the total amount of coverage available for the entire year. You wouldn't want to run out while there are still trips pending, especially if it might be too late on short notice to get suitable per-trip coverage, etc.

 

9 hours ago, CDNPolar said:

We have for the past few years bought an annual plan and saved LOTS of money, but that savings comes with some financial risk.

 

I know that my experience is with Canadian insurance and it can differ from US insurance, but what I have learned with annual plans is this:

 

(Remember these are Canadian conditions that may or may not exist with your annual plan, so ask the questions of your insurance provider.)

 

1) The annual plan we are with now, has a limit of $5,000.00 per person cancellation, but we can have as many 17 day trips in the year as we like and each one is covered, but only to that $5K per person.  So, I could end up cancelling 2 trips and get back $10,000.00 per person, or 3 trips and get back $15,000.00 per person if the cancellation was for a covered reason.

2) We can choose when buying the annual plan between 17 day trips or 30 day trips and if a trip extends past what we have purchased we can purchase an add on package for the extra days.

 

Some of our trips are more than $5,000.00 per person and so we are hedging the penalties and banking on the fact that unless our need to cancel is extremely last minute, we will come out even, or only a slight cost to us.

 

For instance, if we were to go on three cruises and insure them separately we would pay about $4,500.00 for the three policies combined.  With this annual plan we are paying $1,300.00 total.  So there is financial risk, but we are willing to take that.

 

SOME POLICIES that I have investigated let you designate a total amount of coverage that you want over the year for multiple trips.  These policies see that coverage level as a "bucket" and once you have claimed against that then there is no insurance left.  So, if you had a serious incident come up and you made a claim, you may not have coverage for other trips in that year.  I find theae policies to be as expensive as purchasing for individual trips.

 

PRE-EXISTING CONDITIONS:  With my annual policy, pre-existing conditions are dealt with by each individual trip in the year.  If I need to cancel a trip for a covered reason that is medical, and that medical reason relates to a pre-existing condition, then the pre-existing condition must have been stable for 3 months prior to the trip departure date.  If I am to claim for medical assistance while on a trip and that medical assistance is in relation to a pre-existing condition then that pre-existing condition must have been stable for 6 months prior to the trip departure date.  All other covered reasons are clear cut, it is just the pre-existing conditions that are a concern to us on the annual plan.

 

Some or all of these things may or may not relate to a policy that you are looking at but they are all things to consider with your provider.

GC

 

Thank you both so much for the replies. Gives me alot of information, 

 

Donna

[poohbear8]

Be sure to read and ask questions if you have them about plan limits. You have 6 trips planned but file a claim for #2 due to a covered reason/ issue. Is there a max they will pay per year? Is it only 1 claim per category or a max amount? I looked into the yearly plan because so many swear by them, but it didn't seem like a good deal if I needed to use it early in the year. 

[CDNPolar]

13 hours ago, poohbear8 said:

Be sure to read and ask questions if you have them about plan limits. You have 6 trips planned but file a claim for #2 due to a covered reason/ issue. Is there a max they will pay per year? Is it only 1 claim per category or a max amount? I looked into the yearly plan because so many swear by them, but it didn't seem like a good deal if I needed to use it early in the year. 

 

Depends on the plan.  For me, the CANADIAN plan that I have will pay to a Max of $5,000.00 per person for as many trips as I take in a year.  I can plan 10 trips, pay for them and then cancel 5 and get up to $5000.00 per person back on those five trips.  (For a covered reason of course)

 

There are other Canadian plans that have a dollar limit in the year that they will pay out.

 

Mine pays for any cancellations that are a covered reason.

 

It pays to shop around and find different deals.

[ciera123]

I’m so glad I found this forum! My concern is for my husband who just started on Medicare with part G. We’ve called and they confirmed that Medicare, except in specific and rare cases, won’t pay for coverage out of the country. With annual plans, I can’t seem to find medical coverage for more than $50,000 per person per trip. If something major were to happen, $50,000 doesn’t go that far these days, so I will probably just to get him an individual trip plan with higher medical.
 

He doesn’t have pre-existing issues and only takes one med for hypothyroidism. Am I missing anything??? 

[GeezerCouple]

3 hours ago, ciera123 said:

I’m so glad I found this forum! My concern is for my husband who just started on Medicare with part G. We’ve called and they confirmed that Medicare, except in specific and rare cases, won’t pay for coverage out of the country. With annual plans, I can’t seem to find medical coverage for more than $50,000 per person per trip. If something major were to happen, $50,000 doesn’t go that far these days, so I will probably just to get him an individual trip plan with higher medical.
 

He doesn’t have pre-existing issues and only takes one med for hypothyroidism. Am I missing anything??? 

 

If you mean are you missing anything about the annual plan limitations... probably not.

There can be many limitations with annual plans, which is why many of us don't use them!

 

Not having pre-existing conditions doesn't really matter in terms of having a catastrophic medical event far from home, given they can happen with accidents... or with the first emergence of some previously unknown medical issue.

 

We always get coverage separately for each trip.

 

You might want to check with a travel insurance broker such as

www.TripInsuranceStore.com

They deal with several insurers, so they have a nice variety of types of plans.

CALL them; don't rely upon the limited online plan summaries that can't possibly include all of the information that *might* be relevant to your specific situation.

 

Starting coverage within 10-20 days (varies by state) of the very first payment generally offers the most choices of plans.

 

GC

[klfrodo]

5 hours ago, ciera123 said:

He doesn’t have pre-existing issues and only takes one med for hypothyroidism. Am I missing anything??? 

Technically, you're correct.

 

I take medication for high blood pressure. Medication hasn't changed in 3 or 4 years. Therefore, technically, I don't have a pre-existing condition.

Let my doctor change my medication during an annual physical 4 weeks before my cruise and BAM!, I now have a pre-existing medical condition and my coverage is null and void.

 

Any and all travel/medical insurance I purchase, I ensure I meet the conditions required to waive any pre-existing medical conditions.

[ciera123]

3 hours ago, GeezerCouple said:

 

If you mean are you missing anything about the annual plan limitations... probably not.

There can be many limitations with annual plans, which is why many of us don't use them!

 

Not having pre-existing conditions doesn't really matter in terms of having a catastrophic medical event far from home, given they can happen with accidents... or with the first emergence of some previously unknown medical issue.

 

We always get coverage separately for each trip.

 

You might want to check with a travel insurance broker such as

www.TripInsuranceStore.com

They deal with several insurers, so they have a nice variety of types of plans.

CALL them; don't rely upon the limited online plan summaries that can't possibly include all of the information that *might* be relevant to your specific situation.

 

Starting coverage within 10-20 days (varies by state) of the very first payment generally offers the most choices of plans.

 

GC

Exactly what I needed to know, thank you so much. I will continue to buy for individual trips. I just don’t feel comfortable with only $50,000 in medical overage!! 

[ciera123]

56 minutes ago, klfrodo said:

Technically, you're correct.

 

I take medication for high blood pressure. Medication hasn't changed in 3 or 4 years. Therefore, technically, I don't have a pre-existing condition.

Let my doctor change my medication during an annual physical 4 weeks before my cruise and BAM!, I now have a pre-existing medical condition and my coverage is null and void.

 

Any and all travel/medical insurance I purchase, I ensure I meet the conditions required to waive any pre-existing medical conditions.

Great info, thank you! 

[GeezerCouple]

3 hours ago, klfrodo said:

Technically, you're correct.

 

I take medication for high blood pressure. Medication hasn't changed in 3 or 4 years. Therefore, technically, I don't have a pre-existing condition.

Let my doctor change my medication during an annual physical 4 weeks before my cruise and BAM!, I now have a pre-existing medical condition and my coverage is null and void.

 

Any and all travel/medical insurance I purchase, I ensure I meet the conditions required to waive any pre-existing medical conditions.

 

I had a longer post written about this, but first... did you already have a pre-existing condition waiver in place when you had that physical, or had you not yet started a travel insurance policy.

 

IF it's the former, wouldn't that be still covered because of your already-in-place policy *with* waiver of that exclusion of pre-existing conditions?

 

Thanks for clarifying.

 

GC