Travel insurance for over-65s

Depending on your policy, travel insurance can help cover the costs of necessary medical assistance or hospital care if you get sick or injured while overseas. You may also be covered for medical evacuation and repatriation. Australia has a Reciprocal Health Care Agreement (RHCA) with eleven different countries, which can help cover or alleviate some costs of medical emergencies overseas. However, RHCA coverage is still limited, and outside these countries, you may need to pay up-front to receive medical treatment – unless you have travel insurance with medical cover.

Travel insurance can cover the costs of your luggage being stolen, damaged or lost. It may also insure your valuables, such as wallets, the credit cards or money inside, cameras, phones or even your passport or other travel documents.

Travel insurance can also cover you for cancellations or delays that impact your holiday. This means that if something happens that causes you to miss pre-paid flights, bookings or activities, your cover may be able to reimburse some or all of the costs.

Some travel insurance providers may also offer features which you can add to your policy for extra cover:

• Cruise cover. Cruising is a popular holiday option for seniors. Cruise cover usually includes cancellations due to weather, a sudden medical condition or an unforeseen circumstance that would limit your travel, and medical expenses while you’re out at sea. It’s vital that you take out this cover if you’re embarking on a cruise, as standard travel insurance generally doesn’t cover cruise-related claims. You also won’t be covered by Medicare or private health insurance at sea, even in Australian waters.
• Valuables cover. While standard travel insurance will cover loss or damage to your personal belongings, sub-limits apply. If you’re travelling with highly valuable belongings, you should consider a valuables add-on for a higher sub-limit.
• Rental car excess. If you hire a rental car and get into an accident, you will typically have to pay your rental company an excess. This cover will usually cover the excess you may be charged.

There are generally two types of travel insurance policy options, which are:

• Single trip policy. Single trip travel insurance can provide cover for short trips of one or two days or a single extended trip lasting up to 12 months.
• Annual multi-trip policy. Annual travel insurance for over-65s may be the best option for those who travel many times throughout the year. Just keep in mind that these policies will apply a maximum trip length (e.g. 30, 45 or 60 days) and trip durations that are longer than the defined maximum trip length are not covered. They may also have lower age limits, generally under 80 years old.

Basic cover (sometimes known as medical-only cover) is generally the cheapest and most affordable. In most cases, these cheaper policies still offer comprehensive medical cover.

Basic policies generally include:

• Cover for 24/7 emergency assistance
• Cover for overseas medical and hospital expenses (in case of illness or accident)
• Personal liability cover (if something goes wrong and it’s your fault)

This mid-level cover usually features all the things found in basic cover as well as further benefits. However, standard cover may still have certain limits, conditions, or excess payments. Some things you might find in a standard policy include:

• Cover for 24/7 emergency assistance
• Cover for overseas medical and hospital expenses (in case of illness or injury)
• Personal liability cover
• Trip cancellation cover if you need to cancel flights
• Some cover for luggage and personal belongings

This high-level cover may cost a bit more, but it’s great for those travellers who want the peace of mind of not worrying about anything while on holiday. The benefit limits of comprehensive cover are normally higher. Like all policies, this cover has exclusions, limits, sub-limits and an excess that will usually apply to most claims. A comprehensive travel insurance policy will generally include:

• Cover for 24/7 emergency assistance
• Unlimited cover for overseas medical and hospital expenses (in case of illness or accident)
• High limit of cancellation cover
• High limit of personal liability cover
• A higher limit of cover for luggage
• High amounts of coverage for unexpected or emergency travel expenses and more
• Cover for additional travel and accommodation expenses
• Other benefits such as rental vehicle excess or travel delay expenses.

No matter what level of cover you decide best suits your individual circumstances, make sure you understand exactly what is covered. The best way to do this is to read the policy wording, which outlines the full details of your travel insurance.

The price you pay for travel insurance as a senior can vary between providers and is usually based on your individual travel plans. The cost of travel insurance is normally higher for older travellers due to the higher likelihood of making a claim and the size of those claims. Providers also set premiums based on historical claims trends and their forecasts of future claims.

Premiums will likely also be higher for travellers of any age who include cover for pre-existing medical conditions.

While upper age limits can vary between providers, there are still many that offer basic, mid-range and comprehensive cover for people 99+ years old. Travel insurance for seniors can often be more expensive than what younger people may pay, but think of it as an investment in your health and safety. If you’re concerned about possible age-based exclusions, read the PDS to check for limitations before deciding on a policy and product.

Unfortunately, when you get older, there tends to be a higher likelihood of having a previous injury, illness or other pre-existing medical condition. Taking out cover for your pre-existing condition can cost a bit extra; however, extending your medical cover in your travel policy to include your pre-existing medical conditions is a smart idea should something go wrong while you’re overseas.

It’s important to check with your insurance provider if your specific condition is covered and to disclose these conditions when signing up for your policy.

If you haven’t added any cover for your pre-existing conditions to your policy (perhaps because you want to save some money), you won’t be able to claim any medical expenses that relate to this condition, or cancellation costs if your condition causes you to cut your trip short.