Pat Wuensche and her family are experienced travelers. When they discovered a two-part cruise, traveling from Los Angeles to Japan and then from Singapore back to the United States, they eagerly seized the chance to embark on the 72-day voyage.
When they made the reservation, their travel agent provided insurance and Wuensche didn’t hesitate.
“I believed, ‘We’re going to be away for a long time,'” she said.told Arizona’s Family News‘We had better protect ourselves.’ So I went ahead and paid for it on both trips, just as a precaution.
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Regrettably, the safety net disappeared when they required it the most. They are now faced with just over $45,000 in expenses that weren’t covered, even though they had purchased a policy they believed would offer protection.
A $45,000 shock
Wuensche became ill and was admitted to the hospital after the family arrived in Japan.
So,” Wuensche said, “the doctor asked, ‘How long can I keep you in the hospital?’ I replied, ‘How about one day?’ And he said, ‘No, you need to cancel the rest of your trip.’
The second voyage was called off, and Wuensche remained in the hospital for a total of 57 days.
The physicians knew very limited [English] vocabulary,” she stated. “When they initially identified it as COVID, I was placed in isolation, so my family wasn’t even allowed to visit. I wasreallyalone. It was challenging.
Wuensche was aware the costs would be high, but she felt comforted by the insurance she had bought.
After arriving home, Wuensche submitted a claim to Aon, the company linked to the cruise line.
Rather than receiving compensation, Wuensche states that she endured months of silence along with ongoing demands for additional paperwork.
It’s frustrating because you believe you can go there with a sense of security, thinking that if anything occurs, you’ll be fine,” she said. “Unfortunately, something did occur.
Following several months of discussion, Aon finally provided a response. The company stated that Wuensche’s policy only covered her cruise, not the medical emergency that led to its cancellation.
They agreed to pay the $8,000 for the cruise cancellation, but not the $45,000 or more in medical and lodging expenses.
“It needs to be concealed. Definitely,” Wuensche stated.
The policy helped the family avoid cruise cancellation fees, but it still required them to cover the significantly higher expense: the real medical emergency.
It’s a hard lesson about the real aspects of travel insurance.
Travel insurance can be very detailed, and even a small adjustment to your plans may result in your coverage becoming invalid.
Read more: Are you looking to gain an additional $1,300,000 upon retirement? Dave Ramsey suggestsThis 7-step strategy ‘guarantees success’ in eliminating debt and achieving wealth in the United States.— and that ‘anyone’ is capable of doing it
The small print that travelers might overlook
For millions of Americans, including Wuensche, travel insurance provides a sense of security.
According to Hotel News ResourceIn 2024, the number of paid claims related to travel delays increased by 15%, while average compensation amounts went up by 8% compared to 2023. Emergency medical claims became the most frequent type for the first time in over ten years, accounting for 27% of all settled claims.
Nevertheless, insurance can seem like a complex web of detailed terms, exclusions, and technical pitfalls that most travelers typically only become aware of once their claims are rejected.
Wuensche believed that because she had bought insurance for the entire trip, she would be covered no matter what occurred. However, according to the policy details, when the second portion of the trip was “canceled,” all other benefits, such as medical coverage, were also ended.
How to prevent a financial crisis while on vacation
Would you like to avoid becoming the next news story? Here are some travel insurance recommendations to consider.
First, purchase your insurance as soon as possible, preferably right after making your reservation. Delaying too long might result in you being excluded from coverage for unexpected situations, such as bad weather or work stoppages.
Second, review your entire policy and not only the summary. Focus on the cancellation policies, restrictions on coverage, and the conditions that lead to the end of benefits. Do not assume that being on a trip means you are still protected. As seen in this example, insurance policies can terminate medical coverage the instant your travel status changes.
Third, ask specific questions prior to purchasing. Will I be covered if I cancel during the trip? What happens if I am hospitalized in a different country? Do I need to submit claims through my…health insuranceFirst? Obtain the responses in writing if feasible.
In conclusion, don’t assume that your credit card or work-sponsored insurance will cover the remaining costs. These benefits may be secondary and only pay for what isn’t covered by a primary insurance plan.
The Wuensche family’s $45,000 experience goes beyond a mere travel nightmare; it serves as a warning for all travelers who have ever selected “add insurance” without properly reviewing the details.
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This piece offers information solely and should not be interpreted as guidance. It is offered without any form of guarantee.
