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Unexpected overnight stays caused by severe flight delays or cancellations. Buying clothes and other personal items when your checked bags are delayed or missing. Emergency room visits in foreign countries.

Sometimes, trips don’t go as planned. And, the troubles listed above aren’t all that uncommon — my husband and I have dealt with each of these issues multiple times in the last three years while traveling as digital nomads.

You can self-insure against these sorts of incidents by simply paying for expenses when they arise. But if things go downhill, you may be stuck with a massive bill. So, some travelers chose to protect themselves financially by either purchasing individual travel insurance or putting trip expenses on a travel rewards credit card that may provide protection when the card is used for travel purchases.

In this guide, I consider an important question that I’ve asked myself many times: “When should I purchase travel insurance and when can I rely on credit card travel protections?” The answer to this question is complex and personal. As such, the answer will vary from traveler to traveler as well as from trip to trip. Let’s dive in so you can make an informed decision for yourself.

What is travel insurance?

With travel insurance, you pay a modest amount and are protected for a larger amount if your trip doesn’t go as planned. There are many different types of travel insurance that you can purchase, but most publicly available policies provide two types of protection: medical protection and travel protection. However, it is possible to purchase travel insurance that only provides medical protection (such as GeoBlue) as well as travel insurance that allows you to only purchase the protections you need (such as American Express Travel Insurance’s build-your-own option).

I’ve previously compared the best travel insurance policies and providers. So, check out that guide to find the provider and policy that fits your needs best. As you’ll see, the coverage offered by each policy differs but the following types of coverage are available on at least some policies:

Trip cancellation: Reimburses your prepaid, nonrefundable expenses if you cancel your trip due to a covered reason. Offered by most policies, it’s usually based on the cost of your prepaid, nonrefundable trip. Note that most policies exclude cancellations due to pandemics or epidemics unless you have personally been diagnosed.
Trip interruption: Reimburses you for the unused, nonrefundable portion of your trip and/or for the increased transportation costs it takes for you to return home due to a covered reason. It’s offered by most policies but is usually dependent on the cost of your prepaid, nonrefundable trip. Some policies may not cover the cost to rejoin an interrupted trip.
Emergency medical: Provides benefits for losses due to covered medical and dental emergencies that occur during your trip. Offered by most policies, usually with a low cap on emergency dental care.
Travel accident protection: Coverage for an accident resulting in death or dismemberment while on your trip. Offered by most policies.
Emergency medical transportation: Emergency medical transportation arranges and pays for the cost to medically transport you to an appropriate medical facility to receive care and to get you home after you have received care. Coverage may also pay for the costs of a visitor’s economy-class, round-trip transportation to the covered person’s bedside. Offered by most policies and usually requires preapproval and arrangement by the provider.
Political evacuation: The political evacuation benefit can be used to transport you to the nearest safe place or your residence under specific conditions. Not offered by most policies, and policies that do offer this benefit often have many exclusions.
Baggage loss/damage: Covers loss, damage or theft of baggage and personal effects. Offered by most policies, usually with a low cap on high-value items such as electronics.
Baggage delay: Reimburses the purchase of essential items during your trip if your baggage is delayed or misdirected by a common carrier. Offered by most policies, but some require up to a 24-hour delay before allowing any reimbursement.
Travel delay: Reimburses you for additional expenses due to a covered delay. Some policies may also cover lost prepaid trip expenses due to a covered travel delay. Offered by most policies after a six- to 12-hour delay.
Change fee coverage: Provides reimbursement for fees to change the dates on your airline ticket. Only offered by some providers on some policies.
Loyalty program redeposit fee coverage: Coverage for frequent-flyer mile redeposit fees in the event of a covered trip cancellation. Only offered by some providers on some policies.
24-hour hotline assistance: An assistance team that’s available to help you handle all kinds of travel emergencies. Offered by most policies.
Concierge: Provides personalized information about your destination and assists you with obtaining restaurant reservations, tee times and tickets to events. Offered by some policies.
Rental car damage protection: Provides primary collision/loss damage coverage for physical damage to a rental car. Offered by most policies for a per-day, add-on fee.
Cancel/interrupt for any reason: Provides trip cancellation and interruption coverage for any reason, although some policies do have some exclusions. Offered by some policies, and can be added to some policies for an additional fee.
Cancel/interrupt for work: Provides trip cancellation and interruption coverage for covered work-related reasons. Offered by some policies, and can be added to some policies for an additional fee.
Lost ski/golf/hunting/fishing days: Reimburses you for lost ski days, golf rounds, hunting days or fishing days, as well as for equipment rental expenses if your equipment is delayed by a common carrier. Not offered by most policies.

Most travel insurance policies exclude any loss incurred because of a preexisting medical condition that existed within a certain period of the coverage effective date (usually 60 to 180 days). However, most policies will waive the preexisting condition exclusion if you meet certain requirements. These requirements usually include purchasing the policy shortly after the first nonrefundable trip payment or deposit as well as being medically able to travel when you purchase the policy.

Likewise, all travel insurance policies have exclusions. For example, most plans exclude medical benefits for injuries caused while doing adventure activities such as sky diving or skiing outside of maintained trails.

What travel protections are provided by credit cards?

Some credit cards don’t provide any notable travel protections, while others offer ample travel protections. Currently, my favorite consumer credit cards that offer travel protections are the Chase Sapphire Reserve® ($550 annual fee), the Chase Sapphire Preferred® Card ($95 annual fee) and The Platinum Card® from American Express ($550 annual fee, see rates and fees).

Some travelers may also want to consider the protections provided by the U.S. Bank Altitude Reserve Visa Infinite® Card. However, I excluded this card because the benefits aren’t clearly defined to non-cardmembers and the Chase Sapphire Reserve will generally be a better option for cardholders willing to pay a high annual fee.

If you’re looking for a small business credit card that offers travel protections, you may want to consider the Ink Business Preferred Credit Card or The Business Platinum Card® from American Express.

The information for the U.S. Bank Altitude Reserve and the Ink Business Preferred has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

When should I purchase travel insurance?

There are many different travel insurance providers and policies, so it’s difficult to compare independent travel insurance and credit card travel protections head-to-head. Instead of comparing travel insurance with credit card travel protections, in this section I consider when you should purchase travel insurance before considering when credit card protections may be enough in the next section.

Here are some reasons you may want to purchase travel insurance for a trip.

Travel protections aren’t offered

As discussed above, not all travel credit cards provide extensive travel protections when you book your travel using the card. So, if you’re using a card without travel protections or a card that only offers limited travel protections, you may want to purchase travel insurance.

You may want to cancel for epidemic-related reasons

Credit card travel protections and most independent travel insurance exclude cancellation due to pandemics or epidemics unless you have personally been diagnosed. So, if you are booking travel that you aren’t sure you’ll want to take — or even be able to take — due to epidemic-related reasons, you may want to purchase cancel for any reason insurance. Alternatively, you could consider purchasing a travel insurance policy that explicitly includes cancellation due to epidemics. Although these policies are currently rare, Wendy Perrin’s website found that Atrio Travel Assist includes epidemics as a valid reason for trip cancellation.

Some travelers aren’t covered

Just because a card offers travel protections, doesn’t mean everyone traveling with you on a trip will be covered. In particular, travel protections usually only extend to select relatives of the cardholder. So, friends, employees and relatives may not be covered.

Adventure activities

If you are planning to partake in an activity that is generally excluded by most insurance policies, you may want to purchase a travel insurance policy that explicitly includes your activity of choice. For example, adventure sports activities such as base jumping, sky diving, free soloing, diving, mountaineering and paragliding are often excluded. You may want to consider purchasing insurance from an association involved in your adventure activity, such as Divers Alert Network (DAN) if you’re a diver or German Alpine Group (DAV) if you partake in alpine sports.

You’re concerned about preexisting conditions

Most credit card trip interruption and cancellation insurance excludes cancellations or interruptions caused by preexisting conditions. So, you’ll want to purchase travel insurance — and ensure you satisfy the insurance’s preexisting condition exclusion waiver conditions — if you want trip cancellation and interruption insurance that covers preexisting conditions.

Nonmedical evacuation insurance

If you want evacuation insurance for nonmedical reasons, you’ll want to purchase travel insurance that covers nonmedical evacuations. However, be sure to read the benefits guide closely, as even nonmedical evacuation benefits may not cover every type of evacuation you might need. For example, some policies don’t cover evacuation from an area that had a travel warning when you booked your trip or evacuation from an area that’s suddenly inaccessible due to a landslide or other environmental incident.

Ski/golf/hunting/fishing trip coverage

Some travel insurance policies cover missed ski, golf, hunting or fishing days if travel delays or other select reasons cause their cancellation. Some of the policies also cover sporting equipment rental if your equipment is delayed or lost by a common carrier. And, some policies may provide compensation for trips on which you’re unable to hunt or fish due to regulations implemented after you booked your trip.

Cancel for any reason

If you are uncertain whether you’ll be able to take your trip, but the reason for which you’d need to cancel or interrupt your trip isn’t normally covered by credit card trip interruption/cancellation protections, then you may want to purchase travel insurance that offers a cancel-for-any-reason benefit. For example, my friend once purchased this type of insurance when he bought a flight to a country for which he needed a visa but wasn’t sure his visa application would be successful. Ironically, some policies have exclusions for this benefit, so be sure that the reason for which you may need to cancel isn’t excluded.

Extra assurance

If you simply want extra assurance that you’ll be covered for a wide variety of potential issues, then purchasing travel insurance may provide comfort that is worth the price of the policy. However, you may find that each insurance wants you to file with the other insurance first if you have multiple coverage options.

When are credit card travel protections enough?

If you don’t fall into any of the categories above and you use a credit card that provides extensive travel protections — such as the Chase Sapphire Reserve — when making travel purchases, you may determine that credit card protections are enough for some (or all) trips. However, I’d only recommend relying on credit card protections if you also have medical insurance that provides adequate coverage at your destination even if the medical providers you end up using are out of network.

Below are a collection of reasons you may be able to rely on credit card protections instead of purchasing travel insurance. All of these reasons don’t need to apply for you to forgo travel insurance, but if some or most of these reasons apply to your trip, you may choose to rely on credit card protections:

You have personal health insurance that will cover you on your trip, even if treatment is out of network
You have a premium travel rewards credit card that provides travel protections, and you use this card to book your travels
You have a premium credit card that provides medical evacuation protection on your trip
You book refundable travel, including award flights and/or nights that can be canceled free of charge
You tend to change your plans frequently or make travel plans at the last minute
You have an emergency fund that could cover unexpected expenses if needed
You have airline miles or transferrable points that you can use to leave the area or return home if needed
You avoid especially high-risk activities

Is credit card travel insurance good enough?

After researching the best travel insurance policies and providers, I did purchase travel insurance for one specific trip because I wanted political evacuation coverage. But, for the majority of my trips, credit card protections provide enough protection for me. This is because my travel usually looks like the following:

My flights are often American Airlines award flights that I can cancel and redeposit free of charge due to my American Airlines Executive Platinum status or other award flights that have modest change and cancellation fees
My lodging is almost always freely cancelable until shortly before my stay
If I book a tour or activity, it is usually within 24 hours of the tour or activity
My health insurance covers me well, so travel insurance would only cover my deductible. And, my out-of-network deductible is low enough that I’m willing and able to cover it using my emergency fund
I book flights, or put the taxes and fees for award flights, using the Chase Sapphire Reserve card. So, I already have access to the card’s travel protections, including emergency medical evacuation (which I also have as a cardholder of The Platinum Card from American Express), trip delay, baggage delay and lost baggage protection
I have ample airline miles and transferrable points that can be used to cover a last-minute one-way flight

So, as you can see, the benefits of purchasing travel insurance would be minimal for most of my trips. And, although I live on the road as a digital nomad, I visit my legal residence frequently enough to be covered by credit card protections that have a 60-day or 90-day trip-length limitation. But, depending on how you travel, you may come to a different conclusion than me regarding travel insurance for your trips.

Bottom line

Should you purchase travel insurance for an upcoming trip? This decision is personal, and often there isn’t one correct answer. One way to think about it is whether you’d be adequately covered without purchasing travel insurance if the worst happens. If you’re willing and able to cover the costs in this situation — or you feel confident you’d be adequately covered by the travel protections offered by your credit card and health insurance — then you can safely proceed without purchasing travel insurance. Otherwise, you should consider purchasing travel insurance shortly after you purchase the initial expenses for your trip.

For rates and fees of the Amex Platinum Card, please clickhere.

Featured photo by Samuli Vainionpää/Getty Images.

Original Source: androidcentral.com

South Korea is one of the many countries in the world that provides universal health care for its citizens. This universal health care is both a source of relief and national pride for many South Koreans. This pride is further amplified by the fact that modern health care in South Korea rose out of the devastation of the Korean War. With the recent COVID-19 global pandemic, South Koreans rely, now more than ever, on their health care system.

History of the South Korean Health Care System

South Korea’s health care system was developed at the end of the Korean War in 1953. One of the first projects that aimed to help South Korea was the Minnesota Project, launched in September 1954. Under the Minnesota Project, Seoul National University agreed to receive medical education and equipment from the University of Minnesota. The U.S. Department of State also contracted the University of Minnesota to assist Seoul University with staff improvement and equipment aid.

This project allowed the health care system to grow and flourish over tte next couple of decades. In 1977, the Korean government mandated all companies with more than 500 employees to provide health insurance programs for employees.

How South Korean Health Care Works

Established in 2000, the National Health Insurance Corporation (NHIC) is still in charge of national insurance enrollment, collecting contributions and setting medical fee schedules. To provide coverage for all Korean citizens, the NHIC gathers contribution payment from all citizens as part of their taxes. In addition to the contribution payment, the NHIC gather their funds through government subsidies, outside contributions and tobacco surcharges. This wide range of funding sources allows South Korea to provide clinics that are both modern and efficient.

Prevailing Issues

The South Korean health care system does have some issues, however. While the overall quality of health care in South Korea is excellent, access to high-quality medical care can still be difficult for rural residents. According to a WHO case study of South Korea, 88.8% of physicians in South Korea were employed by non-governmental clinics. These non-governmental clinics are usually located in urban areas. About 25% of all elderly over the age of 65 years reside in rural areas, where they are at high risk of falling and other physical injuries. With physicians mainly located in urban areas, the South Korean government recognizes the need to improve health care in rural areas.

A more recent issue that the South Korea health care system is facing is the treatment of foreign nationals. In the past, there were some foreigners who forewent payment after their medical treatment in South Korea. Termed “health care dine and dash,” the Korean government now requires all foreign nationals to sign up for the National Health Insurance scheme within their first six months of living in the country. Once a foreign national receives their Alien Registration Card, they can benefit from Korea’s National Health Insurance Scheme and private insurance.

A Model of Universal Health Care For the World

Developing out of the devastation of the Korean War, the excellent quality of health care in South Korea is a prime example of how a country can implement and sustain universal health care. Despite needs for improvement, the South Korean health care system remains an international model for universal health care. With the recent COVID-19 pandemic, South Koreans recognize the importance of their continuous support for the universal health care system.

 – YongJin Yi 
Photo: Pixabay

The post A Profile of Health Care in South Korea appeared first on The Borgen Project.

Original Source: borgenproject.org