Travel Insurance Trend: Medical Benefits are In-Demand
Mar 03, 2021 | Aon
From cruise lines to tour operators, travel suppliers are reassessing and enhancing their travel protection plans to anticipate the needs of the post-pandemic traveler. One of the top areas of focus? Medical benefits – especially for suppliers operating abroad or in remote locations.
According to Beth Godlin, president of the Aon Affinity Travel Practice, “We’ve all placed a higher priority on health and wellness because of the pandemic and that’s certainly impacting the benefits we see travel suppliers enhancing or adding to their travel protection programs. Consumers are looking to protect themselves at a level they haven’t before, and medical benefits are a way to help provide some additional peace of mind.”
In general, there are three core reasons travelers may need to access the medical benefits included in their travel protection policy:
- Medicare Doesn’t Cross U.S. Borders - Medicare is only valid in the United States, so senior travelers need to explore supplemental coverage that stretches for foreign travel.
- Neither Does Their Domestic Health Insurance - The level of medical coverage available for international travel can vary widely depending on a traveler’s domestic health care provider and plan. But keep in mind that certain health insurance plans may not provide full coverage while traveling in another country. Countries with universal health care might assist with minor needs, but in the event of major or ongoing medical expenses, they would cease to help, and wouldn’t pay to help with the return trip home.
- They Might Need a Lift - Health insurance providers typically do not pay to transport ill or injured travelers back to the United States if overseas, or back to their home medical facility if traveling domestically. If you operate in more remote locations, or those with poor quality or limited health care options, offering consumers a supplemental evacuation insurance plan can be a big plus. After all, average air ambulance bills can easily soar more than $40,000.
So what’s the Aon Travel Takeaway? Godlin says: “Medical benefits included in a travel supplier’s travel protection plan can be customized by the supplier based on its destinations and passenger demographic. That ability to offer customized plan benefits can be an important differentiating factor for consumers as they make travel decisions.”
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