Why Travel Insurance is Important
As travel advisors, we’ve seen countless dream vacations saved—and even more ruined—based on a single piece of paper: the insurance policy. Whether you’re heading to a neighbouring country or across the globe, thinking of insurance as a “backup plan” is a mistake; it is an essential part of your packing list.
Here is why you need a comprehensive plan that covers both cancellations and medical emergencies, and why your current “included” coverage might not be the safety net you think it is.
1. The Two Pillars of Protection
Trip Cancellation & Interruption (The “Before & During” Shield)
Most travellers think cancellation only matters if they “change their mind.” In reality, this protects your prepaid, non-refundable investment.
- Why you need it: If you, your travel partner, or a close family member at home gets sick or injured right before departure, you could lose 100% of your money without insurance.
- Interruption: If an emergency occurs during the trip and you must fly home early, insurance can cover the cost of a last-minute flight and reimburse the unused portion of your hotel or tour costs.
Emergency Medical & Evacuation (The “Life-Saver”)
This is the most critical component. Your domestic health insurance (such as your employer plan or provincial plan) rarely provides full coverage abroad.
- The Cost of Care: In many countries, hospitals may refuse treatment unless you can prove you have insurance or can pay thousands of dollars upfront in cash.
- Medical Evacuation: This is the “hidden” cost that bankrupts travellers. If you are in a remote area or a country with inadequate facilities and need a medically staffed flight home, the cost can easily exceed $50,000 to $100,000.
2. Why Your Credit Card Might Be “Insurance-Lite.”
Many travellers assume their premium credit card covers them. While card benefits are a great perk, they are often “secondary” and come with significant gaps:
| Feature | Standard Credit Card Coverage | Standalone Travel Insurance |
| Payment Rules | Often only covers expenses charged to that specific card. | Covers the total trip cost, regardless of payment method. |
| Medical Limits | Frequently low (e.g., $10,000–$25,000) or nonexistent. | Typically offers $1M to $5M in emergency coverage. |
| Trip Duration | Often capped at 15–30 days; coverage may vanish on day 31. | Customizable to the exact length of your trip. |
| Pre-existing Conditions | Almost always excluded. | Often covered if you buy the policy shortly after booking. |
| Age Restrictions | Benefits often drop significantly after age 65 or 70. | Plans tailored specifically for all ages and health profiles. |
3. The “Due Diligence” Checklist
Before you spend a dime on a new policy, you must audit what you already have. Overlapping coverage is a waste of money, but a coverage gap is a catastrophe.
- Check the “Stability” Period: For medical coverage, most insurers require your health to be “stable” (no new symptoms or medication changes) for 90 to 180 days before the trip. If you’ve had a recent check-up for a minor issue, you might not be covered.
- Verify the “Named Reasons”: Read the fine print on cancellations. Does it cover “Job Loss” or “Terrorism at Destination”? If not, you may want a “Cancel for Any Reason” (CFAR) upgrade.
- Look for “Primary” vs “Secondary”: Primary insurance pays out first. Secondary insurance requires you to file (and get denied) with your other providers first, which can take months of paperwork.
Expert Pro Tip: The best time to buy travel insurance is within 14 days of your first trip deposit. This is often the only window to obtain “Pre-existing Condition Waivers” or “Cancel for Any Reason” add-ons.
Your Freestone Travel advisor can provide you with travel insurance quotes from our supplier, Manulife, and will ask you to acknowledge that coverage has been offered and declined if you choose not to purchase travel insurance or rely on what you already have.