Legal Version: A pre-existing condition is defined as any injury, illness, sickness, disease, or other physical, medical, mental or nervous condition, disorder or ailment that existed at the time of application or during the past duration(specified by each insurance plan) prior to the effective date of the insurance, including any subsequent, chronic or recurring complications or consequences related to thereto or arising there from.

What is a pre-existing medical condition with travel insurance?

Simple Version: Something that happened before you bought insurance is called a pre-existing medical condition. Travel insurance generally does not cover pre-ex, or if it does there are specific conditions.

The concept is simple; insurance companies cannot pay a medical bill for something you already had when you bought insurance.

This would be like trying to place a sports bet after the game ends, you already know the outcome. The pre-existing condition in travel insurance stipulation makes sure “all bets are in”, so to speak, by the start of the game.

For example: A travel medical policy states that insurance will not cover any condition(see definition above) that occurred within the previous 36 months. So if you are diagnosed with kidney problems, and take a trip a year later, any re-occurence of your kidney problem will not be covered. The kidney trouble did not start within the insurance coverage.

Every travel medical policy is a little different. If you are a non-US citizen visiting the US, there are no policies that will cover pre-existing conditions.

For US citizens traveling abroad, some policies will cover pre-existing conditions up to a certain limit, an/or for a shorter time (12 months instead of 36 months, or some as low as 60 days). In these cases, the policy must be purchased in a certain period of time; such as within 14 days of the initial trip depost. This varies by company.

The exclusion of pre-existing conditions, or “pre-ex”, is one of the most common reasons for a denied claim. Some travelers hope they can purchase a policy and get that surgery they always wanted, but it just doesn’t work that way.

Photo Credit: LondonMummy

Eligibility for different travel insurance policies can vary. Most people traveling from the US can buy a policy online with guaranteed acceptance, no medical exam, no waiting; just print it out and go.

Foreign citizens may experience more limitations on policies that will cover them in the US, but usually there is some level of coverage they can get.

The insurance companies can issue insurance coverage easily because of their underwriting policies. They tend to issue policies based on some basic information, and depend on sound underwriting to cover their costs. If a claim is submitted, they will investigate to confirm that the condition was not pre-existing. They can obtain medical records and other information to confirm or deny pre-existing conditions.

Is terrorism covered by travel insurance policies?
It depends. Over the past 5 years since 9/11, many insurance companies have addressed terrorism coverage in their policies. They will provide coverage for trip cancellation if there is a terrorist incident in one of the cities on your itinerary.

As always, read the policy certificate thoroughly. You can even do this after you have made the initial decision for travel insurance, since there is a “free-look period”. This means that you coule decide on your policy and make your purchase. Then, depending on the company, you have a “free-look” period of time in which you can review the policy and return it for a full refund. This also assumes you have not departed on your trip.

Will I be covered by travel insurance if the injury is alcohol related?
No. This is a standard exclusion in travel insurance policies. Basically, it states that injuries or losses suffered while under the influence of alcohol (or drugs) are excluded from coverage.

It only makes sense that an insurance company needs to exclude injuries sustained while intoxicated; the risk for injury is much higher when drinking; similar to the higher risk associated with hang-gliding, skydiving, or motor sports.

This story about a young Canadian man on vacation is a perfect illustration:  after arriving in Mexico, he and two friends celebrated with several drinks. He fell 7 stories off the balcony of his hotel, and sustained multiple injuries. He did not remember exactly what happened, but admitted that drinking was involved.

Unfortunately for the young man, his medical expenses will not be covered, even though he had purchased a travel insurance policy.

This illustrates the need for common sense and caution. All travel insurance policies have exclusions for high risk activities. Read your travel insurance policy and make sure you understand what is covered and what is not covered.

Travel safe.

Who uses travel insurance?
Any traveler could use travel insurance. That’s not to say everyone needs it, but every traveler and every trip type has an element of risk.

Many people only think international travelers or safari adventurers can benefits from travel insurance. The truth is, most policies are sold to everyday travelers going on vacation. Often, the trip isn’t even abroad, but a domestic trip with a high cost that the traveler wants to protect.

How does travel insurance work?
With any trip, there are two main things to consider. 1) The cost of the trip, and 2) your health while on the trip.

If you are going to Europe for a week or two, you would probably focus on insurance to cover the cost of the trip. This can insure against canceled trips, missed flights, lost luggage, etc. This is generally referred to as a “package policy”, or simply trip insurance.

If you are going to Tibet for a 3 month retreat, you would want your insurance to cover emergency medical expenses while traveling. This can insure against accidents, hospital stays, medical evacuation, etc. This is called travel medical, or international medical insurance.

Why don’t I ever hear about travel insurance?
In the US, roughly 30% of travelers purchase travel insurance (based on 2006 data). In Europe, Canada, Australia, etc., up to 90% of travelers purchase a travel insurance policy. This may be due to a cultural difference where we in the States believe our health will be taken care of.

Should I buy travel insurance through my travel agency?

No. If you live in the States and purchased travel insurance for the first time, it may have been sold as an add-on to a travel package purchased through a travel agency. Even Expedia.com offers the “up-sell” while you go through the check-out process. While these plans do provide some coverage, it is always better to purchase insurance from an independent company.

You have probably noticed the popularity of these plans with your travel agent…usually a good supply of brochures and they never forget to mention it. Much like the insurance offered at auto rental companies, this added insurance is very profitable and usually not worth it. Go directly to a travel insurance company.