The Importance of Insuring Trip Deposits—Even Small Ones—Promptly
Learn how much to insure and when.
Even with “Peace of Mind” cancellation policies (with small deposits and lenient cancellation provisions), most travel insurance policies must be purchased within 15 or 21 days of the date the trip deposit (or welcome letter) to be eligible for (a) preexisting condition exclusion waivers and (b) cancel for any reason. And, the individual must not be disabled from travel when purchasing insurance.
Deciding how much to insure—and when—can be tricky.
Here are three options:
- Insure the deposit now and the balance later. This is cost effective, and also preserves eligibility for time-sensitive benefits, such as preexisting condition exclusion waivers and cancel for any reason. However, it is critical that incremental trip payments made after the deposit be covered by incrementally adding to the insurance coverage promptly – usually within 15 or 21 days of each incremental payment. If those incremental payments are not insured incrementally, eligibility for cancel for any reason and preexisting condition exclusion waivers are jeopardized.
- Insure the entire trip cost now. This is the surest way to preserve eligibility for time-sensitive benefits, but if you later decide not to go on the trip, your travel insurance premium is not refundable.
- Insure the trip later, when the balance is paid. Waiting to buy coverage until the balance of the trip is paid is not recommended, as the eligibility window for time-sensitive features will have expired as that window opened when the deposit was made, no matter how small or large that deposit was.
Preserve eligibility for time-sensitive benefits by insuring the deposit now and the balance later.
Be sure to set calendar appointments and reminders so you don’t forget!