Below are answers to some of the most common questions asked about travel insurance.

Are my travel health insurance premiums tax-deductible?

Can I offer travel insurance to my employees?

Why do I need travel insurance? If I get sick when I'm travelling, won't my government health plan or credit card pay for my medical expenses?

Will travel insurance pay my expenses if I am away on a business trip and am called home for an emergency?

I'm only going to the United States for a few days. Do I really need travel insurance?

I am over 60 and have a few health problems. Is it still possible for me to purchase travel insurance?

When should I purchase my travel insurance?

My spouse is travelling with me. Do I need to buy separate coverage for him or her?

Do I really need to read my travel insurance booklet?

I have heard that hospital and medical bills outside of Canada can easily run into thousands of dollars. Even though I'm travelling on a business trip, would I need to pay up front if I have an accident while travelling abroad?

Do I need travel medical insurance when I travel on business within Canada?

Why would I need trip cancellation and interruption insurance?

 

Q: Are my travel health insurance premiums tax-deductible?

A: A portion of your travel health insurance premium may be tax-deductible if you are self-employed. If you are not self-employed, the emergency medical coverage portion of your premium may qualify as an eligible medical expense for tax credit purposes.

To Top

Q: Can I offer travel insurance to my employees?

A: Yes. When your employees travel on business, they can purchase coverage and you, the business owner, can reimburse them. If an employee is an RBC client⁽¹⁾, he or she can purchase travel insurance from RBC Royal Bank^®. If an employee is not an RBC client, or your employee prefers to buy his or her coverage through a travel agent, he or she can purchase travel insurance through a number of travel agencies across Canada.

To Top

Q: Why do I need travel insurance? If I get sick when I'm travelling, won't my government health plan or credit card pay for my medical expenses?

• Government health insurance plans may not cover all emergency medical expenses once you leave your home province/territory and typically cover only a limited portion once you leave the country. In fact, the Canadian Government (Consular Services, Foreign Affairs and International Trade Canada) urges all Canadians to purchase supplemental health insurance when leaving the country. They say:

  "Do not rely on your provincial health plan to cover costs if you get sick or are injured while abroad. Out-of-country healthcare can be costly, and your health plan will cover only part of the bill at best."⁽²⁾

  Plus, government health insurance plans don't guarantee coverage for special care (air ambulance or emergency dental services, for instance).

  Unlike government health insurance plans, our insurance offers you:

  • Unlimited coverage for eligible medical expenses⁽³⁾
  • Up-front payment of eligible medical expenses whenever possible
  • 24-hour, multilingual emergency medical assistance—one toll-free phone call puts you in touch with a multilingual professional who will refer you to a local doctor or facility in order for you to receive the care you need

  Government health insurance plans also don't provide coverage for situations such as lost, damaged or delayed baggage or trip cancellation and interruption. Our travel insurance can provide these coverages and more.

• Some credit cards provide emergency medical insurance when you are travelling outside Canada or your province/territory of residence. However, there may be important distinctions between what travel insurance covers and what your credit card's insurance plan covers.

  For example, with a credit card, coverage might only apply to trips purchased on the card—or be limited to a fewer number of travel days.

  Before you take a trip, it's a good idea to review any coverage provided by your credit card(s) to decide whether you need additional insurance.

To Top

Q: Will travel insurance pay my expenses if I am away on a business trip and am called home for an emergency?

A: If you purchase trip cancellation and interruption insurance, it will help pay for your expenses to return home in the event of a covered emergency. There are a number of circumstances that qualify as an emergency (for example, the death or serious illness of a family member). The cost of cancelling a trip prior to departure can be very expensive, as most trips are non-refundable, especially if you have to cancel just before leaving on your trip. Having to return early from a trip can also be very expensive. Either way, trip cancellation and interruption insurance is very important to protect your travel investment.

To Top

Q: I'm only going to the United States for a few days. Do I really need travel insurance?

A: Yes, you do need travel insurance to protect yourself against the unexpected, even if you are going to the United States for a few days. An illness or accident can happen at any time, whether you're on the road for a few days, or a few months. And remember, the cost of health care is very expensive in the United States and very little of this cost would be covered by your government health insurance plan, credit card or company benefits plan. For a short trip, the cost of travel insurance is minimal, and it gives you the protection you need.

Refer to the chart for examples of actual medical cases and costs in the U.S.

To Top

Q: I am over 60 and have a few health problems. Is it still possible for me to purchase travel insurance?

A: Unless your health problems are severe, you should be able to purchase travel insurance. You may pay a slightly higher premium for travel insurance, depending on your age and health condition. Your premiums and coverage will be determined according to your answers to medical questions. You may not be covered for pre-existing health conditions you have prior to your departure on your trip.

To Top

Q: When should I purchase my travel insurance?

A: If you have prepaid for any non-refundable travel arrangements such as a flight, hotel or tour, we recommend that you purchase trip cancellation and interruption insurance at the same time you book your trip. This way, should one of the covered risks occur between the time you book your trip to the time you leave for your trip, and cause you to cancel your trip, you are covered.

To Top

Q: My spouse is travelling with me. Do I need to buy separate coverage for him or her?

A: Yes, it is recommended that you buy coverage for your spouse as well.

To Top

Q: Do I really need to read my travel insurance policy?

A: Your travel insurance booklet includes the terms of your insurance policy. As with any insurance, some of those terms may limit the benefits payable to you, so it's in your best interest to be familiar with the policy. Also, please remember to take the booklet with you on your trip so you can refer to it if necessary.

To Top

Q: I have heard that hospital and medical bills outside of Canada can easily run into thousands of dollars. Even though I'm travelling on a business trip, would I need to pay up front if I have an accident while travelling abroad?

A: If you purchase travel insurance from RBC Insurance, we will pay the eligible bills directly to the hospital or physician whenever possible.

To Top

Q: Do I need travel medical insurance when I travel on business within Canada?

A: Yes. There are several reasons why it's important to get travel medical insurance when you're travelling within Canada. One reason is that accidents can happen anywhere. Another is that government health insurance plans do have limits on reimbursement of emergency medical expenses incurred while you are in another province. For example, the ambulance, emergency dental treatment and prescription drugs might not be covered by some government health insurance plans.

To Top

Q: Why would I need trip cancellation and interruption insurance?

A: Emergencies happen when you least expect it. You could become sick, your meeting could be cancelled or a family member could have a medical emergency. Trip cancellation and interruption insurance covers you for those circumstances and protects the financial investment made in your trip (for example, any prepaid non-refundable travel arrangements you have made). It also protects you if you need to go back home because of an emergency such as a family member becoming seriously ill at home, while you are away.

We recommend that you purchase trip cancellation and interruption insurance at the same time you book your trip, as you are then protected from the moment you book your trip to the moment you return.

To Top

Purchasing your travel insurance is easy.

At RBC Insurance^®, you can purchase travel insurance in a way that's most convenient for you:

1) Also available for the spouse, child, step-child, or adopted child of the client. Client must also be a Canadian resident and be covered by a government health insurance plan for the entire duration of his or her trip. RBC clients include customers of any company under RBC.

2) "Bon Voyage, But... Essential Information for Canadian Travellers 2008/2009." www.voyage.gc.ca. 2008. Consular Services, Foreign Affairs and International Trade Canada. June 11, 2008. www.voyage.gc.ca/publications/bon-voyage-eng.asp

3) This insurance is subject to a maximum of $20,000 if you do not have valid government health insurance plan coverage in force for the full length of your trip. Please read the policy for all terms and conditions.

4) RBC Insurance, 2008.