Essential for Visiting Canada – FAQ on Travel Insurance in Canada

Key Takeaways:

1. When traveling in Canada, facing a medical emergency could result in a significant financial burden.
2. When purchasing Visitors to Canada travel insurance, it is advisable to purchase comprehensive coverage before arriving.
3. For illnesses arising from pre-existing conditions after arriving in Canada, insurance coverage will depend on policy terms and the stability of the illness.

Canada attracts a significant number of tourists as a popular travel destination; however, facing a medical emergency could lead to a hefty financial burden. While Canada provides free medical services for its residents, medical expenses for tourists can be quite expensive. Therefore, purchasing emergency medical travel insurance for visiting Canada is essential. This article aims to address some common questions to help you purchase insurance correctly and avoid claims issues.

Q: What does Visitors to Canada Emergency Medical Travel Insurance cover?

A: Visitors to Canada Emergency Medical Travel Insurance (hereinafter referred to as travel insurance) aims to cover losses incurred due to sudden and unforeseen emergency medical situations, but it does not cover chronic illnesses or illnesses requiring long-term treatment.

Q: Who can purchase travel insurance?

A: Generally speaking, if you are a visitor to Canada, a person with a Canadian work visa or super visa, an immigrant to Canada or a Canadian resident, who is not eligible for a provincial or territorial government health insurance plan in Canada, you can apply for this coverage.

In addition, each insurance company has certain requirements regarding the insured’s health condition, so it is essential to consult an insurance advisor to understand the eligibility criteria before purchasing.

Q: Is it necessary to purchase travel insurance before departure?

A: Although travel insurance can be purchased at any time, if you purchase travel insurance after arriving in Canada, there is often a waiting period for illnesses. Illnesses that occur before or during the waiting period will not be covered.

Each insurance company may have different requirements for the waiting period. Purchasing insurance within 30 days of arrival in Canada may have a waiting period of 2-3 days. Purchasing insurance after 30 days of arrival may have a waiting period of 7-8 days. However, if you purchase insurance before arrival, there is usually no waiting period. Therefore, if you have already decided to travel to Canada, it is advisable to purchase insurance before arrival.

Friendly reminder: This waiting period applies only to situations where medical treatment is required due to illness. For situations where medical treatment is required due to accidents, there is typically no waiting period.

Q: I’m not sure how long I’ll be staying in Canada. If I initially purchase insurance for a few months and then decide to stay longer, can I extend it?

A: Yes, it is possible. Typically, insurance companies state that as long as you renew your insurance before the previous policy expires, with no gap between the old and new policies, there won’t be a waiting period. For example, if your current insurance expires on July 31st and you purchase insurance for August 1st and beyond on or before July 31st, then the new policy may not require a new waiting period.

While purchasing separate policies may not seem disadvantageous, there is one issue to consider—your new policy will only cover medical conditions that occur after the new policy takes effect, excluding ongoing conditions or expenses from the previous policy. For instance, if you accidentally break your leg on July 31st and incur medical expenses for treatment, your current policy will cover those expenses without any issues. However, we know that after the cast is put on, there will be a need to remove it after some time, incurring additional expenses. Will insurance cover the cost of removing the cast? This depends on two scenarios:

1. If your existing policy expires after the cast removal, then the cost of cast removal will be covered.
2. If your policy happens to expire on July 31st and you renew it for another term starting on August 1st, even though there’s no waiting period between the two policies, the new policy won’t cover the cost of removing the cast.

Therefore, we recommend purchasing comprehensive insurance at once to avoid such scenarios. If you leave Canada before the insurance expires without making any claims, unused premiums are typically refundable. (Please refer to the instructions below on how to request a refund of premiums.)

Q: What is an appropriate coverage amount? Should I opt for a deductible?

A: While everyone’s needs vary, the biggest concern is having coverage that is too small and insufficient. Therefore, we recommend each visitor to purchase at least $100,000 in coverage. Considering the requirements for Super Visa, the Canadian government mandates a minimum purchase of $100,000 in coverage for at least one year, so $100,000 in coverage can be considered a suitable choice.

Additionally, a deductible is the amount you are responsible for paying out of pocket each time you seek medical treatment. If you choose a policy with a $100 deductible, for example, you would need to pay $100 before each visit, and the remaining expenses would be covered by the insurance company. The benefit of having a deductible is that the higher your deductible, the more you can save on premiums (usually between 5% to 20%). My recommendation to clients is to opt for a policy without a deductible, especially for short-term visitors. This is because once you seek medical treatment, the deductible expenses often far exceed the amount saved on premiums. Additionally, setting the deductible too high may lead some clients to endure medical conditions without seeking treatment, which is unwise. The purpose of purchasing insurance is to obtain protection. If you purchase insurance but do not use it, it’s no different from not having insurance at all.

Q: Could you provide some information about medical insurance requirements for the Super Visa?

A: The Canadian government introduced the Super Visa program in 2013, which allows parents or grandparents of Canadian citizens or permanent residents to apply for a multiple-entry visa valid for up to 2 years. Upon expiration, it can be renewed within Canada without the need to leave.

One of the necessary conditions for obtaining a Super Visa is that the children must purchase medical insurance for their parents or grandparents for a minimum of one year with coverage of at least $100,000. If the Super Visa application is denied, the insurance company will provide a full refund.

Q: Are there any special considerations for elderly individuals purchasing insurance for visiting Canada?

A: Firstly, it’s advisable to purchase insurance well in advance. For elderly individuals, especially those over 70 years old, some insurance companies may require additional health questionnaires. If there are concerns about the customer’s health condition, the insurance company may request more detailed information to decide whether to issue the policy. Applying for insurance just a day before departure may result in delays if additional information is needed, potentially causing approval delays.

Secondly, it’s important to choose the appropriate plan. For individuals over 70 years old, some insurance companies may offer two different plan options: one including stable pre-existing conditions and the other excluding them. Plans excluding stable pre-existing conditions may be cheaper. When deciding which plan to choose, it’s advisable to discuss specific options with your insurance advisor to select the plan that best suits your needs.

Q: Do new immigrants need to purchase insurance?

A: Many new immigrants mistakenly assume that Canada operates under a universal healthcare system, where insurance is automatically obtained upon arrival. However, the reality is quite different. In most provinces, such as Ontario, new immigrants do not have provincial healthcare coverage for the first three months after arrival. Therefore, during this period, it is strongly recommended to purchase a 3-month visitor insurance for Canada to smoothly transition to provincial healthcare coverage.

Additionally, it’s important to note that whether you are a citizen or a permanent resident, if you leave Canada for an extended period and return, you may face a situation similar to new immigrants, where there is no provincial healthcare coverage for the first few months. Therefore, it’s necessary to purchase medical insurance before returning to Canada. Each province has different regulations regarding the duration of absence from Canada, so be sure to check your province’s government website for accurate information.

Q: How should I make a claim if I need to see a doctor?

A: If you encounter minor illnesses such as a cold, fever, or headache, you can visit a doctor first, then request receipts and medical records from the doctor. You will need to pay for the medical expenses upfront. When filing a claim, you’ll need to complete a claim application form and mail it along with the receipts to the insurance company. The insurance company will process the claim as soon as possible.

If the condition is more serious and requires hospitalization, it’s advisable to contact the insurance company before seeking medical treatment to apply for pre-authorization. If you’re unable to contact the insurance company promptly during emergencies, be sure to do so as soon as conditions allow. Some hospitals can directly bill the insurance company after obtaining pre-authorization, thereby avoiding upfront payment of medical expenses. It’s important to note that if you fail to contact the insurance company in a timely manner, they may reduce the claim amount or reject the claim altogether.

Q: Can I go on vacation to other countries after arriving in Canada?

A: Some insurance companies allow this, but the prerequisite is that you must plan to reside in Canada for more than 51% of the time. Therefore, we recommend that you spend more time in Canada than in other countries for vacation, and then travel to other countries. Why do we make this recommendation? We can explain through the following scenario:

Suppose a visitor to Canada originally planned to vacation in Canada for one month and purchased one month of visitor medical insurance. After staying in Canada for 3 days, they decided to vacation in the United States for 7 days. On the 5th day in the United States, they felt unwell and went to the emergency room. The emergency room doctor determined that the condition was serious and required immediate treatment. At this point, they no longer wished to continue their vacation and immediately purchased a ticket to return to their home country for treatment. In this scenario, the medical expenses incurred in the United States may not necessarily be reimbursed because their stay in the United States exceeded their time in Canada, even though they purchased one month of insurance. Therefore, to avoid this situation, we recommend that you spend more than 51% of your vacation time in Canada before traveling to other countries for vacation.

Q: How to apply for a refund?

A: If the policyholder leaves Canada early and does not make any claims during this period, it is possible to apply for a refund of the remaining premium. However, the insurance company will charge a certain processing fee (usually around $50 CAD). If the requested refund amount is lower than the processing fee, the remaining premium will not be refunded. When submitting a refund request, you will need to provide a photo of your boarding pass to the insurance company as proof. If you have already made a claim during the coverage period, the policy cannot be refunded.

Friendly reminder: Many insurance companies do not offer refunds for travel insurance purchased for applying for a Super Visa, unless the visa is denied or the individual leaves Canada early after arriving in Canada. This is to prevent individuals from canceling their policy immediately after successfully applying for a visa.

When traveling to Canada, it is crucial to purchase appropriate emergency travel medical insurance. Before purchasing insurance, be sure to understand the details and requirements of the insurance policy so that you can receive timely claims and support when needed. Additionally, be familiar with the policies and procedures regarding policy cancellation and other special circumstances to ensure a more secure and smooth experience during your journey.

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Published Date: March 25, 2024

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