Insurers sticklers for snowbirds' health stability

A simple deterioration or change in the treatment of a pre-existing condition can cost insured hundreds of thousands of dollars if they fail to report it to their travel insurer before taking off.

The pre-existing condition clause in travel insurance policies is crucial, experts say. Under this clause, the insurer requires that any pre-existing medical condition be stable for a certain period of time prior to the insured’s trip.

Will McAleer, Executive Director of the Travel Health Insurance Association of Canada, says it is important to understand one's coverage, limits, exclusions and the support that the insurer can provide. “Whether it’s COVID, a pre-existing condition or an accident, a medical emergency is extremely costly,” he cautions.

Easily $300,000 

“The support provided by the travel insurer to their assistance and claims companies are invaluable when such an emergency strikes,” McAleer continues. He points out that the vast majority of Canadian travellers go to the United States, a country where emergency care costs are the most expensive on the planet. 

Ensuring that pre-existing medical conditions are stable is a key concept in travel insurance, says Tona Cantu, TuGo's Business Development Manager for Eastern Ontario, Quebec and the Maritimes. “Three or four days of intensive care in the U.S. can easily cost up to $300,000, and snowbirds don't want to risk decimating their assets,” he says.

In a column in the Summer 2022 edition of CSA News, published by the Canadian Snowbird Association, Medipac International CEO J. Ross Quigley stresses the importance of insured demonstrating the stability of any pre-existing medical conditions. He recommends that future travellers meet with their doctor as soon as possible.

Quigley mentions in his column that Medipac has a 90-day pre-existing condition exclusion clause prior to departure. “It is best to get medication adjustments at least 90 days prior to travel. That way, we can insure you properly, even for a new condition, in most cases,” he writes. 

Read the contract carefully 

Medipac advises consumers to always read the policy before purchasing, and to make sure they understand its coverage, limits and exclusions. In particular, consumers should understand the pre-existing medical condition clause, the organization adds. This clause applies prior to departure, not during the trip. Consumers should also ask what assistance services are offered, Medipac mentions on its website.

TuGo explains in its blog what “stable medical condition” means under its Traveller Emergency Medical Insurance Plan:

• No deterioration of the medical condition as determined by a doctor or other registered medical practitioner 

• No new symptoms or findings, or more frequent or severe symptoms or findings 
• No change in treatment by a doctor or other registered medical practitioner, or alteration in any medication related to the medical condition  
• No new treatment received, prescribed or recommended by a doctor or other registered medical practitioner 

TuGo goes on to specify the number of days of stability required, by age and length of trip. 

Main criterion 

Beneva exited the individual travel insurance business when La Capitale sold SecuriGlobe to Blue Cross Canassurance. Yet the insurer is still serving snowbirds through its group insurance conversion offering, says Eric Trudel, Executive Vice-president and Lead, Group Insurance at Beneva. “We insure snowbirds who have a group health insurance plan for retirees, as well as snowbirds who have converted their group insurance to individual insurance upon retirement,” he explains.

These clients have converted their group coverage to the Privilege or Perspective products, he adds. “These products are very different from individual products, with the main criterion being pre-trip health stability,” Trudel says.

He believes it is important to raise people’s awareness that they can convert their group insurance to individual insurance when they retire. “New retirees who plan to travel are well advised to consider enrolling in these health insurance products that include travel insurance and trip cancellation insurance.” They can purchase this coverage without a medical exam by converting their insurance within 60 days of the end of their group plan, Trudel says.