Insurance for Adventure Travelers

Americans spend a lot of time worrying about health insurance. This is probably because, good or bad, access to affordable healthcare is tied to employment. People who lack employer-sponsored insurance can be put into a seriously bad spot if illness or injury strikes. They’re less likely to get the best medical care, and what care they do get comes with an incredible price tag.

This is something that I’ve thought a lot about since I’m facing an extended period of unemployment while traveling. I could opt for COBRA coverage after I leave my job, but the $400+/month price tag would burn through my savings pretty quickly. I’m young and healthy, so serious illness is a risk I’m willing write off. I’ll get checked out by a doctor and dentist while I’ve got regular insurance, to take care of any outstanding issues.

What I’m really worried about is getting hit by a car or having some other traveling-related accident. This is a pretty serious risk and the financial consequences of surgeries and hospital time would be grim. I have few assets that would attach to medical collections, but I know that my family would also incur a lot of bills to help me out and I don’t want this to affect them. I’m also a big believer in Murphy’s Law - meaning that if I get some insurance, nothing bad will happen, but if I don’t, then I’ll probably get smeared by a cellphone-talker in an SUV.

So, here’s what I’m going to do to: I’m going to pair a short-term health insurance plan (usually for six months, and renewable once) with a traveler’s insurance plan. The reason for this is to both cover medical treatment and evacuation overseas and health coverage here in the US. If I get hurt in Central America and require extensive treatment, the traveler’s plan will kick in and evacuate me to the US. Once home, my short-term insurance will cover my medical expenses after a (usually $5,000) deductible.

Here’s a quick insurance lesson: all things being equal, a high deductible means a lower premium. For someone my age & health profile, the odds of my needing expensive medical treatment over the period covered by the plan is fairly low, so insurance companies are willing to give me a low premium ($200-$350 total). A high deductible protects them from paying for routine medical visits and prescriptions.

Questions I’ll need to answer before picking a short-term plan:
1) Will being overseas for a portion of the policy exclude coverage?
2) Will traveling by bike, sailboat, or any other higher-risk method exclude coverage?
3) How many times can I renew the policy?
4) Line by line, what is covered & excluded under treatment?

Insurance companies are pretty notorious for denying coverage when they’re dealing with an individual insured (as opposed to an entire company), so I want to make sure I don’t leave any obvious gaps in coverage.

Questions I’ll need to answer before choosing a traveler’s insurance plan:
1) What countries (of travel) are covered under this plan?
2) Do I have a choice of whether to be evacuated or treated in-country?

I’m less concerned about routine medical care in Latin America. Many antibiotics and painkillers are available OTC and doctor’s visits are paid for in cash. The most likely medical issues I’m going to face are the galloping shits (Immodium & hydration), malaria (DEET & malaria pills), standard cold (sleep and/or antibiotics) and your standard scrapes & bruises from cycling.