No holiday for health insurance

What you need to know in order to buy the right travel insurance policy for you and your family

IF YOU’RE planning on heading off to sunnier climes in the near future, buying or renewing your travel insurance policy might be on your mind.

While the recent difficulties experienced by people stranded around the world due to volcanic ash eruptions may have highlighted the importance of having an insurance policy – even though many found themselves with no cover due to the “Act of God” clause – you shouldn’t underestimate the importance of ensuring that your policy also offers good health cover.

If the thoughts of being stuck – potentially seriously ill – in a foreign hospital isn’t frightening enough, picture yourself in a situation whereby your policy doesn’t cover all the costs and you have no possibility of being sent home in an air ambulance.

When deciding on the level of cover you need, one of the first considerations should be your destination, given that travel policies offer cover for medical expenses ranging from about €1 million to €10 million.

When travelling in Europe, for example, additional health cover through a travel insurance policy may not always be necessary as you can avail of the European Health Insurance Card (EHIC), which replaces the old E111 system.

The card allows you to access public healthcare services in other EU or EEA countries, if you should become ill or injured while on a temporary stay there.

If visiting Northern Ireland or the UK, you will not need a EHIC card to get necessary healthcare – proof that you are ordinarily resident in Ireland, such as a driving licence or passport, will suffice.

Given that public health systems vary from country to country, however – and few countries will pay costs in full – you may still feel that a private policy is essential.

In particular, the card does not cover the cost of repatriation, which could leave you stranded abroad for quite some time.

If you have not yet applied for this card or have a new addition to your family this year who will need cover, you can get it on ehic.ie. Similarly, renewals can also be conducted online.

Another way of keeping costs in check is to examine what you’re entitled to if you already have a private health insurance policy in Ireland. Quinn Healthcare, for example, offers members of its Essential Plus plan cover for emergency local treatment when overseas up to the value of €100,000 per episode, while Aviva offers similar cover for members of its Level 2 Hospital plan.

However, if you’re heading to north America, given the increased cost of medical cover there, these limits are unlikely to be sufficient.

“My view is if going to countries such as the US you should get as much cover as you can – €100,000 in the US won’t last you very long,” says Brian McNelis, director of general services with the Irish Brokers Association.

So, if you think the limits offered under your existing health insurance won’t be sufficient, you can still avail of a discount if you decide to take out an additional travel policy, as most providers offer significant savings if you already have private health insurance.

Multitrip.com, for example, offers discounts for those with private health insurance policies, with inpatient medical cover abroad of a minimum of €55,000. On annual worldwide cover, for example, this could save you almost €10 a policy. 123.ie offers a discount of 25 per cent if you already have cover in Ireland.

If you’re looking for travel insurance and have a pre-existing medical condition, you will find it more difficult to get a company which provides cover – Allianz and 123.ie, for example, do not offer cover in such cases. One provider which does, however, is the VHI, although you must be a member of the health insurer to purchase this product.

When looking for insurance under such conditions, McNelis urges people to be honest with their provider.

“You’ve got to be upfront and tell the truth. If you don’t mention it, you won’t be covered,” he warns, adding that a broker can help you find a provider who will offer you some form of travel insurance.

If you have a pre-existing medical condition and simply renew your policy each year without checking its terms and conditions, be warned that you may no longer be covered in full for your particular ailment. Ace Insurance, for example, recently changed its policy on how it covers people with cystic fibrosis.

For the over-65s, finding a travel insurance policy can also be difficult, with restrictions sometimes in place from buying these online. However, McNelis points out that you can’t be prohibited from buying insurance because of your age, but that there could be limitations to your cover, or it might be more expensive.

The VHI, for example, offers travel insurance to its members aged over-65, but at a higher cost – €139 a year for annual worldwide cover compared with €49 for those under 65.