Archive for the ‘Insurance lingo’ Category

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Got Scammed? Travel Scams You Should Know About

Wednesday, January 12th, 2011

Today I got a text message on my phone telling me I had won a free trip to the Caribbeans. To claim my prize all I had to do was phone a number with an 809 area code. I knew this was a scam of some kind, so I checked with AT&T. They told me to be cautions when responding to phone calls from this area code. Even though 809 is a legitimate area code for the Dominican Republic, it has also been used to lure gullible people into paying large international call rates.

And that free trip?  There is no such thing.  Just like there is no free lunch.

There are as many travel scams as there are con artists.  Here are a few of them.

1. The “Cheap flight on a Major Airline” scam.  If someone won’t tell you what major airline it is, then beware. Those major airlines suddenly turn into minor ones that stop at ten different places enroute to your destination. My advice: ask for details. If they can’t give you specifics, then walk away.

2. The “Fly for only $48” scam. Remember, that’s only one way. After they add service charges, processing fees and taxes, the total jumps significantly. And don’t forget the other incidentals such as checked baggage fee and seat assignment request fee.  To add insult to injury, they won’t even give you water for free.  Friends of mine bought a $2.00 ticket from Heathrow to Venice, and ended up paying $160 (not bad for a European holiday, but notice the jump in price). My advice: check the fine print.

3. The “Travel Discount Card” scam. Groups that make these offers are known as “card mills” because they sell cards identifying you as a credentialed travel agent who can travel at free or reduced rates. The problem is that many suppliers of travel do not accept these cards. My advice: Go to the American Society of Travel Agents website or call them to see if these cards are legitimate.

4. The “Offer Expires at Midnight” scam. This is just a high pressure tactic that travel scammers use to intimidate you into making hasty decisions. They know that this doesn’t give you time to do a background check into their company. My advice: Run a “background check.” Vet the travel company on the Better Business Bureau’s Web site to see if they are members of ASTA. You can also check www.ripoffreport.com  and www.complaintsboard.com .

5. The “Hollow Suitcase” scam. This happens frequently in train and bus stations. A traveler gets distracted and takes his eyes off his bag. In a flash someone with a hollow suitcase puts it over the traveler’s bag and then wheels the suitcase away.  A variation of this happens on trains when someone runs through and grabs your case just as the train is pulling away.  He hops off and you are stuck on a moving train.  My advice: Go to our website at www.gninsurance.com/tripcancellation to get excellent trip protection insurance.

Doug Gulleson loves to scuba dive overseas and he makes sure he always takes his Amex card AND international travel insurance policy.  Visit Good Neighbor Insurance at  www.gninsurance.com   for your next overseas trip and get a FREE quote.

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Posted in Why insurance? |

How Much Travel Insurance Do I Really Need?

Friday, August 20th, 2010

There’s been a lot of confusion over whether or not travel insurance covers a natural disaster such as the April 2010 volcanic eruption in Iceland. This disaster stranded tens of thousands of travelers.  When someone asks, “Does my travel insurance cover this type of event?” I answer, “Check the fine print.” 

Here are four guidelines for knowing what kind and how much travel insurance to get.

1. What is your trip worth to you?  A young student sleeping in hostels throughout Europe and carrying a backpack probably doesn’t need a “Cadillac plan” trip protector. Compare that to a couple in their early 60s who have reservations in 5 star hotels in some of the most expensive cities in Europe and who fly first class. Their travel will cost quite a bit, so they should consider paying top of the line coverage.

2. Compare the cost differences between a basic plan and a premium plan. I went on a well-known travel insurance website to see how much it would cost me for a two week international trip. The Basic plan sells for $127 for a person my age.  When I added in “cancel for any reason” coverage, upgraded medical coverage, and optional flight coverage, the total jumped to $202.  So now I have to ask myself, is that extra $75 worth it? 

3. Know what you are buying.  Travel insurance policies contain 4 types of trip protection:  trip cancellation, trip interruption, trip delay and missed connection. Before you travel, find out what is covered and what is excluded.

  • Trip cancellation reimburses you the full cost of your pre-paid ticket in the event you have to cancel prior to your trip. 
  • Trip interruption reimburses you for travel expenses in the event of an unexpected crisis during your trip, causing it to be cancelled, interrupted or delayed. 
  • Travel Delay reimburses you for expenses you pay for trips delayed for more than 5 hours due to covered reasons but only up to a certain amount, some $1000, others $750.  Travel delay typically covers hotel accommodations for stranded travelers, meals, taxi fares and essential phone calls.  
  • Mixed connection reimburses you if inclement weather or common carrier causes cancellation or a delay of a regularly scheduled airline flights for three or more hours to your time of departure.

4. Buy travel insurance for the medical coverage and other services even if airlines reimburse you for travel-related problems.  Sure, airlines do reimburse (for a fee) and are obligated in many cases by law to compensate for long travel delays, interruptions and cancellations. But they won’t pay any medical bills should you be injured on your travels. Medical evacuations alone can cost tens of thousands of dollars. And they won’t pay for other services such as physician referrals, translation services, prescription replacement, emergency cash transfers, and concierge services.

Mixed connections are another form of travel frustration. If your mixed connection occurs when traveling with the same airline or air alliance, then you will be taken care of by the airline company. However, if your mixed connection happens when you fly two different airlines or airline alliances, then you are out of luck with the airline companies. If you have travel insurance that covers mixed connections, then you are in luck.   Good Neighbor Insurance provides top notch trip cancellation plans.  You may view them at our web page at www.gninsurance.com/tripcancellation/ . 

Two out of our four trip cancellation plans we provide are: (a)  Travel Guard Gold plan at www.onlineglobalhealthinsurance.com/trip-cancellation/  and (b) HTH Trip Protector plans at www.overseashealthinsurance.com/trip-protection.asp .  Our HTH Trip Protector plans also cover pre-existing medical conditions.

So, the choice is yours.  Most trip cancellations and interruptions are pretty straight forward, and you can get reimbursements from the airlines. In those cases you wouldn’t need a premium Trip Cancellation plan. But in the event of a volcano erupting, or some other natural disaster that severely disrupts travel for days and days, you could be out hundreds of dollars. That’s why there is travel insurance. Like any insurance, we get it because we don’t know the future.

Doug Gulleson loves to scuba dive overseas and makes sure he always takes his Amex card AND international travel insurance policy. Visit Good Neighbor Insurance at www.gninsurance.com.  for your next overseas trip health coverage and get a FREE quote or call one of our agents at 480-633-9500.

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Posted in Understanding insurance options |

What’s the Best Deductible Amount to Claim on My Health Insurance?

Friday, July 23rd, 2010

As a consumer, I am always trying to make ends meet. So I am concerned that I don’t over-insure myself and my family.  Some insurance is required by law, for example, car insurance.  But do I need term life?  Young families buy term life so that if something happens to one of the parents the children will be properly cared for and will be assured of a good college education.  Do I need health insurance?  Health insurance is only necessary if you get sick or injured, but we can never foretell that.  So we do need health insurance.

One way to avoid becoming “insurance poor” is to take out health insurance with a high deductible.  My advice is that we ask ourselves a question: “If I had a major medical catastrophe, how much money could I find to pay for it?” 

If you have no problem finding $5,000 to pay the deductible in the case of a major catastrophe, then a $5,000 deductible is a good option.  If you think you could only find $1,000 in a crisis, then $1,000 would be a reasonable deductible. People generally choose a deductible based on their ability to meet that deductible. 

Many folks think that going with a high deductible saves a lot of money.  You do save, but sometimes not so much. Let’s look at the hypothetical changes in annual premium for a 30-34 year old male based on various deductibles:

$250 deductible          = $1,275
$500 deductible          = $1,120
$1,000 deductible        = $871
$2,500 deductible        = $772
$5,000 deductible        = $632
$10,000 deductible      = $498

The largest saving of $249 comes between the $500 and $1,000 deductible.  Going from $1,000 to $2,500 saves only $99, and from $2,500 to $5,000 only saves $140.  In fact, going from $1,000 to $5,000 saves only $239 per year even though you have added $4,000 to the deductible.  So increasing the deductible does not produce great savings. 

Up to the present time, with all companies, the $1,000 deductible seems to be the most cost-efficient.

Doug Gulleson loves to scuba dive overseas and makes sure he always takes his Amex card AND international travel insurance policy. Visit Good Neighbor Insurance at www.overseashealthinsurance.com/short-term.asp  for your next overseas trip health coverage and get a FREE quote or call one of our agents at 480-633-9500.

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Posted in Understanding insurance options |

Going Back to Basics to Understand What “Insurance” Means

Monday, February 15th, 2010

I had the privilege of taking a week long workshop on “sharpening your interpersonal skills” like listening, drawing people out, living in community, building personal trust, and many other areas.  There were lots of thoughts and ideas that were elementary but it was wonderful to look at it again, especially at the young age of 42.  There were also new ideas and thoughts I learned that I never heard, such as “people are the destination.” 

Now what does understanding health insurance have to do with what I learned this past week?  Plenty for sure but that would take a few more pages.  What we need to do at times is go back to basics and understand what  “insurance” really means.   I like the definition Lloyd’s of London has created:

 “A contract whereby an insurer promises to pay the insured a sum of money or some other benefit upon the happening of one or more uncertain events in exchange for the payment of a premium. There must be uncertainty as to whether the relevant event(s) may happen at all or, if they will occur (eg death) as to their timing.”  

You may be surprised to know our office , www.gninsurance.com, receives at least one phone call a week and at least two emails per week asking to purchase health insurance since they realized they currently have a medical issue where they need to see a medical facility as of now and some as of yesterday!  They didn’t plan for those “uncertain events” that Lloyds mentions, and so they were not prepared financially when they did happen.

There are times I wish I could predict the future but if I could I sure would not be writing this article and instead would be scuba diving the wreck at Tulamben , north coast of Bali, with laptop in hand emailing you my paypal account making you and I very happy indeed.  But alas, we will have to just open up those fortune cookies at our favorite Asian restaurant for our “possible” future fortunes.

Another thing to consider as we go back to basics on understanding insurance is that we all help pay for each other’s care if and when that may happen in the future.   So yes, we can call each of us the good Samaritan.  I gather many have not thought about this but purchasing insurance on yourself is actually making others who have your type of insurance very happy.  We can throw the six degrees of separation out the window because your insurance premium is actually helping the next person that is grouped in your policy portfolio.  Wow, talk about being able to “touch someone” and help them smile.  So when you are paying that monthly premium, which at times I do with a heavy sigh, realize that part of your hard earned income is helping pay for someone’s unfortunate medical concerns.  Now if that doesn’t bring a smile to your face just grab another fortune cookie!

Well, I feel we have gone back to basics enough for today talking about insurance.  If you want more, please feel free to email me. But in case you do not get a quick reply it is because my fortune cookie told me today that in 2 days I will be diving Tulamben. So, adios friends, I am heading to Phoenix Sky Harbor airport for some fun diving in Bali! Doug Gulleson loves to scuba dive overseas. He makes sure he always takes his credit card AND international travel insurance. Visit Good Neighbor Insurance at www.gninsurance.com/travel-A/international_travel_insurance.asp  for your next overseas trip and get a FREE quote.

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Posted in What is insurance? |

Getting health insurance for specific needs not covered by standard plans

Monday, February 8th, 2010

I phoned my bank last week and was greeted with a voice that gave me six options for directing my call to the right person.  The six options still weren’t enough. So I pressed zero to get to the operator.

Purchasing overseas health insurance can be like that.  There may be plenty of options in a standard health insurance plan, but Murphy’s Law predicts that the option you need won’t be listed.   

Below are eight unique and specific overseas health insurance needs that are not covered in standard plans.  You may view these plans on our web site at www.gninsurance.com .

 For American citizens:

  1. Coming home to USA, not going back overseas, and needs insurance while settling in and finding a job.
  2. Has lived overseas and will be going overseas again, but now needs USA coverage for 15 days to 3 years.
  3. Teams going overseas from the USA for 3 days to 3 months.
  4. One-time premium payment each year for a person who makes 3 or more trips outside USA every year.
  5. Term-life insurance in any country in the world.

For non-American citizens:

  1. Teams traveling outside their home country and/or to the USA.
  2. Immigrating to the USA and cannot yet qualify for USA health insurance.
  3. Needs insurance in USA that includes maternity coverage.

The good news is that we can help you if one of the above situations describes your need.  Call us on our toll free number at (866) 636-9100. An agent – not a recording – will greet you.  Doug Gulleson loves to scuba dive overseas. He makes sure he always takes his credit card AND international travel insurance. Visit Good Neighbor Insurance at www.gninsurance.com  for your next overseas trip and get a FREE quote.

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Posted in Why insurance? |

Health insurance for Workers in War Zones

Tuesday, February 2nd, 2010

According to the National Terror Alert website, January 24, 2010, Osama bin Laden reportedly has taken credit for the thwarted attempt to bring down Delta flight 253 on Christmas Day. The al-Qaeda terror chief also threatened fresh attacks against American targets.

The reavowal of ongoing attacks brings up the question of whether Americans working overseas can get medical and travel insurance that covers war.

Almost all international policies have a line in their Exclusion section that reads, “This medical plan does not cover…. any consequence, whether directly or indirectly, proximately or remotely occasioned by, contributed to by, or traceable to, or arising in connection with:

  •  war, invasion, act of foreign enemy hostilities, warlike operations (whether war be declared or not), or civil war;
  •  any act of any person acting on behalf of or in connection with any organization with activities directed towards the overthrow by force of the Government de jure or de facto or to the influencing of it by terrorism or violence . . . .”

I think you get the picture. So, if you are driving through town and get shot in a gun battle, you are not covered. You are also excluded if you get injured in your home from an incoming rocket. But what if you are walking down the street, trip and break your hand? Or you injure your head in a car accident? In those cases you are covered for it had nothing to do with a war.

The bottom line – We can write overseas health and travel insurance for people in war zones, but with the exclusion as listed above.

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Posted in Why insurance? |

Do you realize your health care plan may not cover you in Canada?

Wednesday, January 20th, 2010

Is traveling to Canada from the U.S. for the Vancouver Winter Olympics considered an international trip?

Yes.

Your U.S. domestic health insurance plan – whether it is individual, group, Medicare or Medicaid – will not cover you in Vancouver for medical evacuation.  They may cover doctor and hospital visits, but they won’t cover you for medical transportation and evacuation, which are the most expensive coverages.

It does seem unfair. After all, Canadians look like us, they eat like us, and they talk like us (except you can always spot a Canadian by how they pronounce “again” and “out.” Listen for it when you are at the Olympics.)

You might wonder, “What’s gonna happen to me in Canada?” What are the odds of getting hit by a runaway bobsled, getting frozen to my seat watching Ice Hockey, or eating a bad hotdog at the opening ceremonies? Probably slim or not at all.

But … there are 101 ways you can get hurt or sick at the Vancouver Olympics.  It’s nice to know for as little as $1-$2 a day you can get top-notch international travel insurance plan by calling Good Neighbor Insurance agents.  Doug Gulleson loves to scuba dive overseas. He makes sure he always takes his credit card AND international travel insurance. Visit Good Neighbor Insurance at www.gninsurance.com  for your next overseas trip and get a FREE quote.

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Posted in Why insurance? |

Trusting your credit card travel coverage over an overseas health insurance policy is like trusting a canoe to get you to the Cayman Islands.

Monday, January 18th, 2010

The big question is what kind of coverage is provided on your credit card.  Some offer basic assistance benefits, while others will build in a medical evacuation program.  Remember–the devil is always in the details!

Here are questions to ask about your travel insurance coverage on your credit card:

1.         What are the details?  Always read the fine print.  Remember: The big print giveth and the small print taketh away!

2.         Who do I contact if I get sick or injured and need coverage?  The last thing you want when you are in need of medical care and/or evacuation is a voice message. You urgently need to speak to a live person who specializes in your concerns, not someone in the company who only knows how to cancel stolen credit cards.

3.         Do I know how much coverage I will need?  This is vital since credit card companies are not in the international health insurance business. Using a well-known international health insurance brokerage firm that specializes in overseas health insurance plans will give you much needed peace of mind.

4.         Who pays for my health-care bills?  Does your credit card company take care of your bills upfront, or do you have to put your bills on your credit card and get reimbursed later.

5.         Will I get reimbursed if I have to pay upfront for my medical care?  Remember, the overseas medical staff is not going to wait until your credit card company pays.  The evacuation team and the medical staff overseas want their money when service is rendered!

6.         Will my credit card company provide me with the best hospitals and doctors for my medical needs, or will I go to the “general” population hospital that may not be “A” rated?  By going with one of our short-term travel plans you will be routed to the best hospitals/medical facilities available.  One international insurance company we work with bypassed a hospital in inland China and evacuated a patient to Bangkok, Thailand so they could get the right medical care for his injuries. They did this in spite of the extra cost to themselves, the insurance company.  Would your credit card company do this for you?

7.         Will I pay a deductible on my credit card benefits?  We have plans that have no deductibles and some with deductibles.  Our evacuation plans have no deductible or co-pays.

8.         Will my pre-existing medical conditions be covered? Our Excursion and Trip Protector plans cover pre-existing conditions.  You can see these plans at  www.overseashealthinsurance.com  .   Most other plans we carry provide some coverage for pre-existing conditions. 

9.         Will my credit card coverage bring my mortal remains back to the USA and pay for the red tape and government paperwork?  Our international health plans do this without a penny out of your loved one’s pocket.

Most credit card companies, even when they offer it, offer limited medical care and evacuation coverage like medical evacuation which is often capped at $20,000 or less, and medical care is capped at $10,000.  On average medical evacuation costs from Brazil to the Mayo Clinic in Florida is around $26,000, and this is not for a major emergency. Another client in 2009 was evacuated from Algeria to Italy for a cost of $82,000.   Medical evacuation may not always be this expensive, but we see very few evacuations that are below $20,000.   

Peace of mind is what you are purchasing when you purchase a travel plan from a brokerage that specializes in overseas health travel insurance and we do that here at Good Neighbor Insurance.  Would you buy a pair of flip-flops to run a 10k marathon?   Of course not!  What you want is the right amount and right type of travel insurance coverage. The last thing you want to worry about is how you are going to pay your medical bills while you are fighting to recover your health.

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Posted in Why insurance? |

Deductible is not a dirty word

Wednesday, December 16th, 2009

HMOs (Health Maintenance Organizations) and PPOs (Preferred Provider Organizations), to say the least, are not the best of friends! One thing HMOs do in their marketing is to claim that they have “no deductibles.” Of course this is a slam at PPOs that have deductibles. Yet HMOs don’t mention that if a client goes into the hospital on many of their policies there is a co-pay of $250 or $500. This large co-pay in some ways is similar to and often larger than some deductibles.

Also, most people don’t realize that even though you may have a $500 deductible with a PPO you still have small co-pays if you visit a doctor. Generally, the doctor’s office visit, lab work, and x-rays are all covered with just the co-pay with no extra charge to the insured. This is very similar to how HMOs work.

So, when does the deductible kick in? Usually for outpatient surgery, emergency room, and in- hospital stays.

“Deductible” is not a dirty word. In many ways it is just a variation of a large co-pay.

Most international policies are “classical” PPOs, and, according to my knowledge, none have co-pays. They could all be classed as “traditional” insurance; that is insurance that works from a deductible, co-insurance, and then total coverage.

Good Neighbor Insurance – for international health and travel insurance

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Posted in Insurance lingo |

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