Mental Health and Travel Insurance

  • Originally published August 17, 2015 , last updated September 29, 2015
Mental Health and Travel Insurance

Could you answer this client question: “Months after I purchased travel insurance for an overseas trip, my daughter entered rehab. Depending on when she is released, I may have to cancel the trip. Will my travel insurance cover the cost of cancelling the trip?”

Because your clients see you as their trusted insurance agent, you may get questions from time to time that involve insurance that you might not sell. Becoming a Travel Insurance Center affiliate allows you to offer your clients the same level of product expertise that you have on your lines of insurance, but with travel insurance. How? You can either sell travel insurance directly to your clients or refer clients to us — either way, we’re the experts on the small print.

The fictional client case here is a perfect example of when the big print giveth and the small print taketh away.

Many comprehensive travel protection plans exclude mental, nervous, emotional, or psychological disorders, unless hospitalized. Other travel protection plans and international medical insurance plans opt out completely by stating in their exclusions list:

(j) Mental, Nervous or Psychological Disorder.

In this case, the traveler has no way of knowing when his daughter might be released from the program. If she were released right before his trip, he and his wife would have to cancel and would not be covered for trip cancellation, unless the daughter is hospitalized.

The only type of travel protection plan that could have provided some relief in this scenario would have been a Cancel For Any Reason (CFAR) policy that would have returned 75% of their nonrefundable trip cost. Because their daughter was not in treatment at the time they purchased their insurance, they had no need for a CFAR policy, which would have cost 50%. Now a CFAR policy is not available. One of the qualifying factors in making a CFAR purchase is that you buy the policy when you make the first trip payment — generally within 14 to 21 days of that first payment.

Travel insurance is like other insurance. It simply does not cover all life scenarios.

Don’t feel like you have to know all the small print to help your clients. Remember that Travel Insurance Center can be a resource so that you can better serve your clients. But make sure you sign up as an affiliate so you get paid a commission on each successful sale or referral!