Travel Insurance
Table of Contents
There is a common mistake that many newcomers to Canada often make, which is assuming that travel insurance is only for tourists. They forget that when stepping t in Canada, regardless of their status, they still need insurance. The cost of medical care and hospitalization in Canada is extremely high. Therefore, whether you are a traveler, an international student, or a new immigrant, if you do not have any insurance in case of emergencies, you still need to purchase temporary travel insurance. Before deciding to buy insurance, it’s important to learn some basic knowledge about travel insurance.
How much does hospitalization cost in Canada?
The cost of hospitalization can vary widely, ranging from a few thousand to tens of thousands or even hundreds of thousands, depending on the medical condition. However, to give you a rough idea of the standard hospitalization costs, we will provide information from the Canadian Institute for Health Information. The following is the average cost of hospitalization in each province, excluding medication costs, surgeries, and other additional expenses.
Who needs insurance in Canada?
EVERYONE! Yes, EVERYONE! In Canada, there are various types of insurance, among which the most basic insurance that most people living in Canada have is the provincial insurance. For example, in Ontario, there is OHIP (Ontario Health Insurance Plan). However, to be eligible for provincial insurance, certain conditions need to be met. For all cases where provincial insurance is not yet obtained you need to purchase travel insurance or insurance for international students.
Specifically, the cases that require travel insurance or insurance for international students fall into the following categories:
- Travel or visiting relatives.
- International students arriving early before the start of their study program
- International students who have just graduated and their school insurance has expired, but they do not meet the requirements for provincial insurance.
- Landed immigrants who have just arrived in Canada
- Canadian citizens returning to the country after a long period abroad and waiting for the effective date of provincial insurance (usually 3 months).
Conditions for purchasing travel/insurance for international students
The truth is, not everyone is automatically eligible for insurance coverage. To purchase travel/insurance for international students, you need to meet the following conditions:
- No pre-existing severe illnesses
- Not diagnosed with or undergoing treatment for stage 3-4 cancer
- No need for assistance in basic daily activities
- Good health and no intention of seeking medical advice or treatment during your stay in Canada
- Cost of travel/insurance for international students in Canada
Cost for travel insurance
How much does it cost to purchase travel/insurance for international students?
The insurance cost will depend on key factors such as the insurance company, the customer’s age, the province the customer is visiting, the total amount of insurance coverage, and the deductible amount.
To help you estimate the insurance cost, I will use the current rates from the insurance company I work with, Allianz Global Assistance.
The above rates are for individual travel. If you travel or study abroad with your family, the insurance fees for dependents will be lower. In addition, insurance fees for international students are much lower than travel insurance.
Benefits: What’s covered
What does travel/insurance for international students cover?
We cannot provide a comprehensive list because policy wordings are usually lengthy, sometimes spanning over 10 pages. However, I will summarize the most important coverage that insurance will reimburse:
- Emergency cases: including hospitalization expenses, medication costs, specialized treatments, transportation costs, etc., for urgent illnesses or injuries.
- Emergency dental expenses or those due to accidents
- Some additional expenses related to emergency cases that you may overlook: expenses for family members to travel to Canada to assist with care, repatriation expenses for insured persons returning to their home country for treatment, accommodation, taxi, phone bills, etc., incurred by both the insured person and the accompanying family members during the treatment process.
- Compensation in case of loss of life, loss of body parts, or permanent disability.
Please note that when purchasing an insurance policy, if you are fluent in English, it is advisable to review the policy wording to understand the coverage and any additional conditions, to avoid any unintended misunderstandings.
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FAQs- Travel Insurance
This is the amount you have to pay out of pocket before the insurance coverage applies. For example, if your policy has a $500 deductible and your hospitalization costs $3,000, you will have to pay $500 upfront, and the insurance company will cover the remaining $2,500. Therefore, the higher the deductible, the lower the insurance premium. So, if you are comparing insurance prices between different companies, make sure to compare them at the same deductible level.
For individuals aged 0-59, there is no need to fill out a health questionnaire, and they will be covered if their health has been stable for 90 days prior to the effective date of the policy.
For individuals aged 60-79 who require coverage for pre-existing conditions such as heart conditions, stroke, or any unstable existing conditions within 180 days of the effective date of the policy, they need to complete a health questionnaire. If coverage for heart conditions and strokes is not required and the existing conditions have been stable for 180 days prior to the effective date of the policy, coverage for those pre-existing conditions will be provided without filling out a health questionnaire.
For individuals aged 80-89, pre-existing conditions will not be covered unless they fill out a health questionnaire, and if accepted by the insurance company, additional premiums may apply.
- No new treatment
- No changes in treatment, frequency, or type of treatment
- No new signs, symptoms, or diagnoses
- No deterioration in the condition based on test results
- No specialist consultation or waiting for surgery or consultation results with other healthcare professionals
Yes. The condition is that the traveler must spend at least 51% of the time in Canada. However, the insurance coverage will be void if the insured person is in their home country or travels outside Canada when the Canadian government has issued a “avoid non-essential travel” advisory.
There are several cases where you can get a refund for the amount you paid, including:
- Within the first 10 days after purchasing insurance (due to a change of mind, change of plans, or any other reason).
- When you have obtained provincial insurance coverage. You can fill out a form to get a refund for the future period that you have already paid for if you have never made any insurance claims. For example, if you purchased insurance for 1 year and after being in Canada for 6 months, you qualify for Ontario OHIP provincial insurance, you can request a refund for approximately 50% of the amount you have paid.
- When you return to your home country early. For instance, if you purchased insurance for a super visa, which requires you to have coverage for 1 year, but you only stayed for 6 months before returning, you can request a refund of 50% of the amount paid.
Many people choose to buy travel insurance in their home country because it is cheaper. However, this is a common mistake. When considering “cheap” prices, many people forget to compare other factors such as the coverage amount, the cases covered, the complexity of the insurance claim process, and the customer support and care system.
When buying travel insurance in the home country, many people mistakenly believe that it is cheaper. However, in reality, the coverage amount in the purchased packages in the home country is often lower to make the insurance premium look “cheap”. However, that coverage amount may not be sufficient to cover all expenses in the event of an accident. Additionally, insurance companies in the home country typically do not directly pay for medical expenses in Canadian healthcare facilities. Instead, the insured person is required to pay upfront and claim reimbursement later. This process carries a lot of risks. On the other hand, if you purchase insurance from a company in Canada, in the event of an emergency, you only need to call the hotline and you will be guided directly. The insurance company typically makes direct payments to major healthcare systems and hospitals in Canada. This not only provides financial convenience but also gives you peace of mind, as you don’t have to worry about going through the reimbursement process later.
There are cases where you are unsure about the duration of insurance coverage you need. For example, a common situation is when international students have graduated and do not yet have employment to qualify for provincial insurance coverage, and they are uncertain about how long they should purchase insurance. So, is there a price difference between purchasing insurance for 1 year or 6 months?
In reality, there is no price difference between purchasing insurance for a short or long duration. The insurance premium depends on your age, so it is calculated based on a daily rate. Therefore, if you are uncertain about the duration of insurance coverage you need, you have two options:
- Purchase insurance for a shorter duration than your estimated need. When you are nearing the end of the insurance period, you can purchase additional coverage. The process of purchasing travel insurance is quick and easy. It only takes a few minutes to contact an insurance advisor and obtain a new insurance policy after making the payment. However, the disadvantage of this option is that over time, you may forget that your insurance has expired.
- Purchase insurance for an equal or longer duration than your estimated need. Although this option may seem illogical, you should know that most insurance companies in Canada have provisions for refunding unused premium amounts when the insured person obtains provincial insurance coverage (if the insured person has never made any insurance claims). Although it may take some time to fill out a refund request form for the unused premium amount, this will help you avoid the risk of forgetting the expiration date of your insurance in the case of Option 1.