Travel Insurance for older adults: What to know before you leave

Travel outside the U.S. can be a deeply gratifying experience — unless an illness or injury leaves you stranded and on the hook for canceled itineraries and emergency expenses. Travel insurance is one of the best ways to protect yourself against those risks, before your trip and while you’re away from home. And it’s especially important for older travelers and expats.

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For one, travelers over age 50 are more likely to have pre-existing health conditions. They’re also more vulnerable to serious illness and accidental injuries. But Medicare won’t cover care you receive outside the U.S., and private health insurance coverage is usually limited, at best. Travel insurance fills those gaps and can even pay for emergency medical evacuation.

To learn more about insurance options for older travelers and expats, Nifty 50+ talked to Doug Gulleson, owner of Good Neighbor Insurance, a Gilbert, Arizona-based international brokerage that specializes in international medical coverage for travelers, expats and organizations.

Travel Insurance for Overseas Travelers and Expats: What Are the Options?

Three types of insurance are available for travelers and expats: Trip cancellation, travel medical and international health insurance. Trip cancellation insurance is the standard type of travel insurance, and it provides the least amount of protection for medical emergencies.

“International expat insurance is medically underwritten, and acceptance is based on medical history.” — Doug Gulleson, owner of Good Neighbor Insurance agency.

“Trip cancellation plans focus more on covering for “x” amount of dollars you want to insure in case you cannot go on your trip for an unforeseen reason, and the minor focus is medical and evacuation coverage,” Gulleson told Nifty 50+.

Travel medical insurance provides more comprehensive coverage for medical care while you’re outside of the U.S. Because there’s no underwriting, you can get it even if you have existing health issues. But there’s a caveat:

“These policies are for new injuries and new illnesses only — pre-existing condition coverage is limited or excluded,” Gulleson explained.

The third type of insurance is international health insurance, also known as global health insurance, overseas health insurance or expat insurance.

“International expat insurance is medically underwritten, and acceptance is based on medical history,” Gulleson said. That means the insurer can deny coverage or require you to purchase a rider for a pre-existing condition. 

Benefits are similar to Affordable Care Act (Obamacare) policies.

Which Travel Insurance Is Right for You?

Consider the type of travel and the length of your trip when selecting your insurance.

Trip Cancellation Insurance

• Best for healthy people traveling for 30 days or less

“Trip cancellation policies can protect your financial investment in the event you have to cancel due to injury or illness, or the death of a relative, but medical coverage is limited while you’re away,” Gulleson said.

Travel Medical Insurance

• Best for travel of 12 months or less

Travel medical plans cover unexpected illnesses and injuries while you’re outside of the U.S., usually for a year or less, Gulleson said. He recommends choosing a plan with strong pre-existing illness coverage if you have a chronic health condition, and coverage for war or terrorism if you’re traveling to a high-risk country.

International Health Insurance

• Best for expats and travelers who’ll be overseas for a year or more

International plans provide comprehensive coverage and typically include evacuation for emergency treatment and repatriation of your remains if you die overseas.

“These policies are focused on those wanting coverage throughout the world, as well as when they visit their home country, like a U.S. expat visiting home here in the U.S. for a few months,” Gulleson explained.

You’ll need a comprehensive plan if you have pre-existing conditions, Gulleson said. He also recommended verifying home country coverage before you buy a policy because plans often limit it to six-month visits. However, most are guaranteed renewable up to age 74.

“Many of our expats have had the same policy for over 15 years now,” Gulleson noted.