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The Chase Sapphire Reserve and the Chase Sapphire Preferred Card are two of the most talked-about travel credit cards, thanks to the valuable Ultimate Rewards program, top-notch benefits and valuable travel protections.

You might assume that the Chase Sapphire Reserve — which comes with a higher annual fee and more luxury benefits — is always the better choice. It is the higher-tier card, but that doesn’t mean it’s necessarily the better card for you. With the Chase Sapphire Preferred offering a higher sign-up bonus of 80,000 points after you spend $4,000 in the first three months and travel understandably on the back burner for many cardholders, there are plenty of reasons why it could be the more attractive option for your wallet.

Before we get into the benefits of these two cards, note that you can’t hold the CSP and the CSR at the same time, and you need to wait at least 48 months between earning the sign-up bonus on one card before you can earn it on the other. Also, make sure you don’t bump up against Chase’s infamous 5/24 rule.

Travel coverage and purchase protection

It’s also worth comparing the coverage offered by these two cards for things like travel delays, trip cancellation and purchase protection.

An argument for the Reserve

The Chase Sapphire Reserve is obviously the more premium of the two cards. If you’re a frequent traveler, the Reserve will likely give you more long-term value.

Premium travel benefits

If you’re looking for premium perks, the Reserve is the way to go. You’ll get a $300 travel credit each year with the Reserve, a $100 credit for the TSA PreCheck or Global Entry application fee every four years and a Priority Pass Select membership that gives you entry into airport lounges around the world. Plus, the card just added new benefits.

As part of a new partnership with food delivery service DoorDash, cardholders receive a $60 annual DoorDash credit to use on food delivery each year in 2020 and 2021 and a one-year complimentary subscription to DashPass (which waives the delivery fee at eligible restaurants and discounts service fees on orders of more than $12). Cardholders will also get a free one-year Lyft Pink membership, which includes a 15% discount on all rides and free bike and scooter rentals each month.

While some of these perks can’t be used right now, if you take advantage of these perks later on in 2020 and into 2021, you’ll more than offset the cost of the Sapphire Reserve’s $550 annual fee each year.

Higher earning rates

The Chase Sapphire Reserve has a higher earning rate than the Chase Sapphire Preferred. Those who spend a lot on Lyft, travel and dining will find the added points per dollar on those purchases rewarding. For example, if you know you’ll spend $50 per month on Lyft and $1,000 a month on travel and dining

You can see that there is potentially a huge difference in earnings over the course of a year. Even though TPG values all Ultimate Rewards (no matter which card earns them) at 2 cents each, the Reserve provides $300 more in annual rewards value in the above example. The more you plan to spend in those bonus categories, the bigger the difference in rewards. Let’s say you spend $2,000 a month on travel and dining and the same $50 on Lyft. That would bring your Reserve earnings up to 78,000 points annually ($1,560 in value) versus 51,000 points with the Preferred ($1,020).

Keep in mind, though, that you won’t earn 3x on travel until you have used up your $300 travel credit.

Both cards have received temporary benefits from Chase to help cardholders maximize their cards while travel may not be in everyone’s 2020 plans, and the Chase Sapphire Reserve has understandably gotten higher temporary earning rates as well — 10x on select streaming services (on up to $1,500), 5x at gas stations (on up to $1,500) and 5x on Instacart (up to $3,000) through Sept. 30, 2020.

50% redemption bonus

In addition to a higher earning rate, the Reserve also comes with a higher redemption rate when you book travel through the Chase Ultimate Rewards portal. The Chase Sapphire Reserve allows you to redeem each point at 1.5 cents each, compared to 1.25 cents each with the Preferred.

I don’t typically suggest booking hotels through a third-party portal unless you find a great deal, because you typically won’t earn hotel points, elite credits or have your elite status recognized (though that isn’t always the case). But if you are regularly booking airfare through the portal, it’s worth having the Reserve for the higher redemption rate. A $600 plane ticket will cost you 48,000 points with the Preferred but only 40,000 points with the Reserve.

Through Sept. 30, this 50% redemption bonus also extends to grocery stores, home improvement stores and dining establishment purchases that can be erased through Chase’s new Pay Yourself Back feature.

Better trip insurance coverage

With more cards cutting trip insurance, premium coverage is harder to come by. Both the Preferred and the Reserve offer a great selection of travel insurance benefits but you get better coverage with the Reserve — almost double the coverage amount on some benefits like travel accident insurance and purchase protection. On its own, this may not be a reason to choose the Reserve over the Preferred, but when combined with the other additional benefits the Reserve offers, it could be a deciding factor.

An argument for choosing the Preferred

The Chase Sapphire Preferred can’t compete with the Reserve when it comes to perks such as the annual travel credit and the return on bonus-category spending, but this card still could make more sense for you.

Lower annual fee

The first advantage of the Sapphire Preferred is the most obvious: a significantly lower annual fee. The Sapphire Reserve costs $550 per year while the Preferred costs only $95. Of course, it’s worth keeping in mind that the Sapphire Reserve offers a $300 annual travel credit, which effectively lowers the cost to just $250 per year — a $155 premium over the Sapphire Preferred.

If you’ll be spending at least $300 on travel in a year anyway, it could be worth paying more for the Reserve. If that fee doesn’t seem manageable, the Sapphire Preferred Card is a very worthwhile alternative. In fact, I’ve held off on upgrading my own Chase Sapphire Preferred to the Chase Sapphire Reserve this year in light of the coronavirus pandemic and my limited travel spending in 2020.

The Preferred’s elevated sign-up bonus

The Chase Sapphire Preferred currently wins out over the Chase Sapphire Reserve by offering a higher sign-up bonus. Right now, you’ll earn 80,000 points after you spend $4,000 in the first three months. TPG values Ultimate Rewards points at 2 cents each, meaning this bonus is worth up to $1,600. By comparison, the Reserve is offering 50,000 points after you hit $4,000 in spend within the first three months, which is worth only $1,000.

Here’s the caveat: you can only receive one bonus from a Chase Sapphire card within 48 months, which means you need to choose carefully. The additional $600 in value you’ll get with the Preferred’s sign-up bonus is a compelling reason to apply for it over the Reserve. If you decide that you would get more value with the Reserve card’s features, you can always request an upgrade later down the line.

Same access to Ultimate Rewards transfer partners

Even though it doesn’t offer all the same premium benefits, the Sapphire Preferred Card offers identical transfer benefits to the Reserve card. No matter which card you choose, you’ll be able to move your Ultimate Rewards points (earned both through the sign-up bonus and through spending) to the program’s airline and hotel partners at a 1:1 ratio. Chase’s airline partners give you access to all three of the top alliances (Oneworld, Star Alliance and SkyTeam), so you’ll have a strong variety of options for putting your points to use.

The two cards do, however, differ when it comes to redeeming points through the Chase Ultimate Rewards travel portal. With the Preferred, you’ll get 1.25 cents in value per point, while with the Reserve you’ll get a higher value of 1.5 cents per point.

Check out our guide on maximizing Chase’s transfer partners

You still get primary rental car insurance

Long before Chase introduced the Sapphire Reserve, award travelers sang the praises of the Sapphire Preferred card’s auto collision damage waiver (CDW) benefit. This perk provides reimbursement for damage as a result of collision or theft for rentals of 31 days or less when you decline the rental agency’s CDW. If you’re eligible, you’ll be reimbursed up to the actual cash value of most rental vehicles.

With the Chase Sapphire Reserve, the terms and conditions actually cap reimbursement at $75,000. (It’s unlikely you’d need more reimbursement from either card, since most rental cars are worth far less.) It’s worth noting that the Preferred’s coverage excludes “expensive, exotic and antique automobiles.”

No authorized user fee

There are various reasons to consider an authorized user. You could be looking to help someone build up his or her credit history; you might want to provide employees with cards for a business account or maybe you’re looking to earn bonus rewards for adding additional users. With the Preferred, there’s no cost to add additional users. With the Reserve card, on the other hand, it costs $75 per year for each authorized user (most likely because each gets his or her own Priority Pass Select membership for airport lounge access).

Easier to get approved

A final reason to consider the Sapphire Preferred Card over the Sapphire Reserve Card is that it could be easier to be approved for the Preferred. As an ultra-premium card, the Reserve requires a top-notch credit score. You’ll still need a solid score for the Sapphire Preferred (typically somewhere in the high 600s to the 700s), but you might have an easier time getting approved for that card if your score is on the low end of the optimal range.

Bottom line

The Chase Sapphire Preferred Card has long been a TPG favorite. When the Reserve launched, however, it quickly became a go-to for luxury perks such as a Priority Pass Select membership and the annual $300 travel credit. You really can’t go wrong with either card; each has a lot to offer both beginners and veterans in the points-and-miles game.

If you’re looking at applying for one or the other right now, it’s important to consider the Chase Sapphire Preferred‘s elevated sign-up bonus. It’s worth hundreds of dollars more without the Reserve’s $550 annual fee. You can always request an upgrade later on if you decide the Reserve will better serve your travel needs.

Apply here for the Chase Sapphire Preferred Card with a 80,000-point sign-up bonus.

Featured photo John Gribben for The Points Guy.

Original Source: androidcentral.com

MakeMyTrip Founder Deep Kalra

MakeMyTrip Founder Deep Kalra

Battered by the coronavirus pandemic that crashed its revenues to zero, India’s largest online travel booking company MakeMyTrip was forced to let go of 350 people, which is nearly 10 percent of its staff, in June.

Initially, around March-end when the country entered into the first phase of the lockdown, the company had hoped it would not have to fire any of its employees, having affected pay cuts across the board.

“But then, two months into the pandemic we realised this is going to take longer and we had to take a very tough decision. I think it's fair to say the toughest decision we have ever taken, which was a large scale retrenchment — almost 10 percent of our staff, which was 350 people — we had to ask to go,” MakeMyTrip Founder Deep Kalra said during a recent chat with YourStory Founder and CEO Shradha Sharma. The company has around 3,200 employees on its rolls.

The layoffs were from businesses which the company thought would not come back in a long time or at least would not be done the same way. These were primarily the retail businesses, which the Nasdaq-listed Gurugram company is in the process of converting into franchises and hopes people will still have gainful employment in these functions when the stores come back in their new avatars.

“But I don’t think we want those (jobs) on our rolls, we were anyway talking about restructuring this (retail business). But it was a tough time. I know for Rajesh (Magow, MakeMyTrip Co-founder and CEO) and myself, we had many sleepless nights. As did our HR, as did every leader, actually. It’s very hard." 

“I think for us, the way we are wired — we are Indian, we don’t have that hire-fire mentality — at least, we certainly don’t. Asking one person to go for (a) reason (that’s) not his or her fault is hard and when you do it mass-scale, it’s very hard,” Deep said.

In March, the World Travel and Tourism Council had warned that 50 million jobs in the travel and tourism industry could be lost worldwide due to the coronavirus pandemic. It projected Asia as being the worst affected with the possibility of 30 million job losses in the continent.

deep-kalra-founder-and-ceo-makemytrip

Deep Kalra started MakeMyTrip at the age of 30 in 2000

The 50-year-old founder of one of India’s early internet successes who went on to become a poster boy for the Indian startup ecosystem and the online travel industry, said, the company wanted to ensure the separation process, albeit painful, was made as easy as possible.

“It’s the right thing to do. So we did extend the benefits and perks, whether it was medical insurance till a whole year, we did let them keep the laptops [sic]. For people who had done long service, we did even more, like linked to how long they had served us." 

“And then, even on a personal front, both Rajesh and I wanted to help anyone who had done a long time with us, more than 10 years, which we did. But it’s the worst thing to do and hopefully we never ever have to do that again,” he said.

At the peak of the pandemic, as travelling came to a standstill, MakeMyTrip’s revenues plummeted from $500 million a month revenue run rate to zero. “We did $6 billion gross booking (in) the last year, the last fiscal that we reported and we were suddenly down to zero,” Deep said.

He reflected on the irony that 20 years after the travel company was launched on April 1, 2000, it found itself in a position where on its anniversary there was virtually no travel happening, with everyone locked down inside their homes.

“We had our earnings call for the worst hit quarter, which is April, May and June, which is the first quarter of our fiscal and it’s open knowledge, since we are a public company, we were 95-96 percent down on revenues. So I was half jokingly saying, this should be called a lack of earnings call not an earnings call,” Deep said.

Also ReadFrom humble village boy to billionaire: Byju’s success mantra revealed

After assessing the initial damage to the business, the MakeMyTrip management got down to figuring out the things they could control to salvage the situation. “We are in travel, not really diversified. So it’s been great for us for so long. We can sit and mope or fret and get into a panic, but neither of those are going to solve our problems,” Deep said.

The management figured the “only thing” it could do was act on two fronts — cutting costs and keeping employees’ motivation levels up, which became even more critical in the backdrop of the job cuts.

Deep elaborated: “How could we be completely maniacal about cutting down on cost wherever possible? So variable costs were (a) little easier, most of them were related to marketing and sales promotion. Semi-fixed cost, which was outsourced partners for post-sales service, call centres was a little harder, but again we gave notices, we negotiated, and we cut back. And the toughest of all, of course, was when it came down to people-cost.” 

According to the company, it tried to do everything possible to avoid the layoffs, especially through the deep pay cuts at the top, but eventually had to take the tough call of letting people go after an extended phase of little or no business.

 

“So, we took cuts, personal cuts in salaries at all levels, literally starting with managerial level at 10 percent, going all the way up to the top where Rajesh and I are still basically going 100 percent cut [sic] because it was not only symbolic but it was the right thing to do. "

“Our entire leadership team, I think it was creditable (that) they took a 50 percent cut and they continue to do so. And even though travel is coming back and now we have started restoring, it’s been (a) good four-five months of being like that,” Deep said.

Also ReadStarting Apollo Hospitals at the age of 50, Dr Prathap Reddy was called a ‘fool’

MakeMyTrip started restoring salaries of employees till the senior manager level by July end, once the business started to come back. “Some of our lines of business have definitely started like domestic flights, I think we are back now at 15-20 percent capacity, which is a start,” Deep said. For hotel bookings, demand is at 10-12 percent of the capacity, as is the demand for bus and other inter-city travel modes, he added.

(Edited by Megha Reddy)

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Original Source: yourstory.com

This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here.

Boom!

U.S. stocks wrapped up their best quarter in more than 20 years, a remarkable rally after the coronavirus pandemic brought business around the world to a virtual standstill. Just three months ago, investors were lamenting the end of the bull market—and the longest economic expansion on record—after major U.S. stock indexes lost about 35% of their value in less than six weeks. The subsequent rebound has been nearly as brisk. Partly thanks to an unprecedented $1.6 trillion stimulus package from the Federal Reserve and Congress and a surge in trading among individual investors, the rally has lifted everything from beaten-down energy stocks to apparel retailers to big technology firms, Michael Wursthorn reports.

The stock market rally stands in sharp contrast to economic output. The second quarter is expected to be the worst post-World War II period on record. There are signs that April was the worst month for the economy and a recovery is already under way. But a resurgence of coronavirus cases could threaten the pace of growth, leaving output and employment well below prepandemic levels for an extended period.

WHAT TO WATCH TODAY

The ADP employment report for June is expected to show a monthly gain of 2.5 million jobs. (8:15 a.m. ET)

IHS Markit’s U.S. manufacturing index for June is expected to tick up to 49.7 from a preliminary reading of 49.6. (9:45 a.m. ET)

The Institute for Supply Management’s manufacturing index for June is expected to rise to 49.5 from 43.1 a month earlier. (10 a.m. ET)

U.S. construction spending for May is expected to rise 0.6% from a month earlier. (10 a.m. ET)

Chicago Fed President Charles Evans speaks at a Chicago community forum at 10 a.m. ET.

The Federal Reserve releases minutes from its June 9-10 meeting at 2 p.m. ET.

TOP STORIES

Down on Main Street

Workplace scheduling-software company Homebase has a warning about Thursday’s U.S. employment report: It might overstate the economic health of Main Street businesses. Yes, employers probably added millions of jobs last month. But the pace of improvement at Homebase’s clients—smaller companies with a heavy dose of leisure and hospitality—was slower in June than in May. Notably, the real-time data shows activity fading in the second half of the month as coronavirus cases piled up in Texas, Arizona and elsewhere. The Labor Department conducted its surveys earlier in June, potentially leaving its report a poor barometer of more recent developments.

Economists are increasingly turning to alternative sources for a read on a fast-changing economy. Drexel University’s Andre Kurmann and colleagues developed a model using Homebase data that is meant to be comparable to the Labor Department’s monthly estimates. “Big takeaway is that recovery of small business employment has almost completely stalled in the last two weeks,” Mr. Kurmann said.

How can the U.S. slow the spread of Covid-19? A growing chorus of Republican officeholders and conservative media figures are calling for people to wear masks. Senate Majority Leader Mitch McConnell, Arizona Gov. Doug Ducey, Georgia Gov. Brian Kemp and Fox host Sean Hannity are among the latest. There is widespread scientific and medical consensus that face masks are a key part of the public policy response for tackling the pandemic, Catherine Lucey reports.

There’s also a robust economic argument. Economists at Goldman Sachs find a national mask mandate would increase usage substantially and cut the daily growth rate of confirmed Covid-19 cases by a full percentage point, to 0.6%. Weighed against other potential actions to reduce the infection rate, Goldman concludes: “A face mask mandate could potentially substitute for lockdowns that would otherwise subtract nearly 5% from GDP.”

Yankee Stay Home

The European Union is starting to open its borders to travelers from as many as 15 countries. The U.S. isn’t one. The decision comes after days of wrangling between the bloc’s member states, which were divided over the economic benefits of opening up ahead of the summer tourist season amid concerns about a second wave of the coronavirus, Laurence Norman reports.

U.S. consumers weren’t going anyway: In June, the share of households planning to vacation in a foreign country fell to the lowest level since 1986, according to a Conference Board survey.

One consequence of falling air traffic: Airbus said it would cut 15,000 jobs across its commercial aircraft division, citing what it expects to be the Covid-19 pandemic’s yearslong impact on the aviation sector. The majority of the cuts, which amount to about 11% of the company’s total workforce, will be in France and Germany. Airbus doesn’t expect a recovery in air traffic to prepandemic levels before 2023, Benjamin Katz reports.

Pandemic Demand

FedEx said Christmas-like levels of online shopping boosted its business, and it is seeing tentative signs that the global economy is recovering from the coronavirus pandemic. The company said that 72% of shipments in the U.S. went to residences in the latest quarter, compared with 56% a year ago, Paul Ziobro and Allison Prang report.

Conagra Brands said it is investing in more manufacturing capacity as demand for its packaged foods remains strong this summer. The maker of Hunt’s tomatoes, Healthy Choice meals and Birds Eye frozen vegetables said its comparable sales jumped 22% in the quarter that ended May 31 and have continued to increase since then. Retailers and food makers want to be prepared for a surge in grocery shopping, which is likely if a second wave of Covid-19 cases occurs as forecast, Annie Gasparro reports.

Gold prices extended a recent rally Tuesday with uncertainty about the economic recovery and ultralow interest rates lifting demand for the haven metal. Prices ended the second quarter up 13%, their biggest quarterly advance since early in 2016. Tuesday’s close marked gold’s first close above $1,800 since September 2011, and prices are within about 5% of their all-time high of $1,891.90 from August of that year, Amrith Ramkumar reports.

WHAT ELSE WE’RE READING

The Covid-19 recession isn’t like other downturns. “Traditional macroeconomic tools–stimulating aggregate demand or providing liquidity to businesses–may have diminished capacity to restore employment when consumer spending is constrained by health concerns. During a pandemic, it may be more fruitful to mitigate economic hardship through social insurance. More broadly, this analysis illustrates how real-time economic tracking using private sector data can help rapidly identify the origins of economic crises and facilitate ongoing evaluation of policy impacts,” Harvard’s Raj Chetty and colleagues write in a new working paper.

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Original Source: blogs.wsj.com

Heads up! We share savvy shopping and personal finance tips to put extra cash in your wallet. Android Central may receive a commission from The Points Guy Affiliate Network. Please note that the offers mentioned below are subject to change at any time and some may no longer be available.

Editor’s note: This post has been updated with current information and experiences.

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

isolation selfie.JPG michelle juergen.JPGCourtesy of Michelle Juergen

Michelle Juergen is a freelance writer and editor in Los Angeles who was recently let go from her job at a travel trade publication.
Her current monthly income is about $4,000 with unemployment benefits, and her minimum monthly expenses come to around $3,100. 
For Business Insider’s “Real Money” series, Juergen tracked her spending for a week. Between groceries, business purchases, and personal items, she spent $682.84.
Visit Business Insider’s homepage for more stories.

My monthly expenses usually total $3,078, and are broken down into these categories:

Juergen monthly budget chart

Miscellaneous items include my $60 cell phone bill, $120 yoga membership, Netflix and Spotify Premium accounts, random Amazon orders, and emergency costs like DMV or doctor visits.

But before I share a snapshot of my spending as a newly unemployed person, I must address something crucial you’ll see: $16 bacon. 

Yes, I paid $16 for slices of fatty meat I could have gotten for $5 at an ordinary grocery store. But these are unsure times, and fancy bacon is a small, superfluous luxury that, writ large, assuages — even if just for the time it takes to eat breakfast — my constant unease about the future of my life and the world around me. 

I was let go rather suddenly from my job as a Los Angeles-based writer and editor for a travel trade magazine, as the pandemic and travel’s uncertain future forced the company to downsize. But determining how to wisely spend my income — which, as of April 1, comes from unemployment insurance (UI), a couple freelance gigs, and some severance pay — isn’t new to me. I’ve always had a tighter budget because of student loans and car payments (both of which I paid off last fall), so I’m used to leaner finances. When I splurged, it was often on food: dinners and drinks with friends, or solo steak frites and wine after a long work week. 

So although I’ve had to make tweaks to my monthly budget after being let go, and am keenly more aware of every dollar I spend, I’ve not had to profoundly change my spending habits. And thanks to the CARES Act, which adds $600 per week to the $450 I receive from UI (the maximum allowance in California), I’m actually making more per month than I did as senior editor of the travel magazine. 

While simultaneously elevated and disheartened by this fact, I’ve been able to save more per month than I was formerly able, as well as had time to pursue creative projects like contributing unpaid time into “Fly Brother,” a new travel show on public television; joining free online writing seminars; and duct-taping my iPhone to the ceiling to experiment with self-portraits.

My spending will, however, have to decrease in the coming months, especially as the CARES Act’s extra $600 ends July 31. But I plan to mitigate this by increasing my freelance work and moving somewhere more affordable.

Here’s how I spent my money during a recent week in May.

Monday: $32.89
Courtesy of Michelle Juergen

Bobo’s Oat Bars: $32.89

Every day is Blursday now, but somehow, my inner Garfield always feels the acute Weltschmerz of a Monday. During this particular one, I sweat and stress-ate my way through a freelance copywriting project I was on deadline for. During my frenetic sprint, I received a “We miss you!” email with an offer for 30% off from Bobo’s, a Boulder, Colorado maker of tasty oat bars. The sentiment worked: I bought protein and oat bars, a purchase that will count toward my grocery budget.

Tuesday: $121.70
Courtesy of Michelle Juergen

Lady & Larder groceries: $61.70

Therapy: $60

Maybe it was the aftermath of a Monday, but Tuesday begat the $16 bacon binge. I do most of my grocery shopping at Trader Joe’s, but as the product of two organic-food-loving parents, I’ve built certain splurges into my dining budget for things like $9 cherries from small farms, a $10 loaf of locally-made sourdough bread, and, yes, $16 pasture-raised, antibiotic-free, non-GMO bacon from a nearby purveyor. (Side note: Though I do pay more for certain grocery items, I’d never actually bought expensive bacon before.) I picked up these and a few other purchases from Lady & Larder, a local cheese shop that pivoted into a takeout store when the coronavirus severely impacted its business.

After assembling and savoring an epic BLT, I joined my therapist online for our weekly video session. Therapy has been built into my budget for the last five or so years, and I’ve been fortunate to find sliding-scale clinics and counselors that work with my finances. I anticipate the cost will become tougher to maintain in the coming months, but it has been so essential to maintaining my well-being (particularly now, as I navigate constant uncertainty) that I’ll make it work.

Wednesday: $45.55
Courtesy of Michelle Juergen

Paula’s Choice retinol: $45.55

Before the pandemic, performing the ubiquitous lengthy skincare regime for which women are often mocked was keeping my skin clear. Now, I’m dealing with rogue breakouts that seem to magnify the haphazardness of life these days.

And it’s not just me: Experiencing adult acne in isolation is a thing — one that’s making headlines. So while the pixelation of weekly Zoom calls hides my blemishes from friends, it doesn’t conceal the ever-present unease I feel over my growing list of Things I Can’t Control.

Thus, a $45 purchase of Paula’s Choice retinol. When it comes to beauty- and household-related spending, I generally only buy things that I’ve researched thoroughly and aren’t full price. So I made sure to get a deal: I used a code that snagged me a 20% discount, free shipping, and a bonus travel size retinol. 

See the rest of the story at Business Insider

See Also:

The 12 best rosés to try this summer, according to wine expertsKellogg School of Management is allowing students to defer enrollment for up to 5 years while they pursue full-time workThis map shows the highest-paying job in every state (we should’ve been doctors)

READ MORE: The 3 smartest ways to cut costs and grow your savings during a pandemic, according to a personal finance guru

SEE ALSO: I live in rural Costa Rica and spend $1,000 a month on travel. Here’s exactly where my money goes in a typical week.


Original Source: feedproxy.google.com

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