What to know about travel insurance for your working holiday abroad

Many travel insurance companies offer solutions for long-term stays, including Working Holiday programs. We know from feedback that Globe WHV is very reliable but we’re not twisting your arm—pick the insurance company that meets your needs and fits your budget, as long as you get proper coverage!

Here are a few points to put on your checklist as suggested by Sandra, insurance expert at Globe WHV.

Check coverage and deductible (excess) limits

The first thing to check should be the coverage and deductible limits.

A limit is the highest amount the insurer will pay for a covered claim. You’re responsible for any amount exceeding this limit. For instance, an accident coverage limit of $10,000 can seem high but, in fact, it can be reached pretty quickly and you’ll be on the hook for $5,000 if the total amount of your accident is $15,000. Keep an eye on percentage as well—100% coverage of eligible prescription drugs is perfect; 70% less so (because you will have to cover the remaining 30%). The higher the limits, the better the policy.

A deductible (also known as excess) is the amount you pay for covered claims before your insurance plan starts to pay for the balance. For example, with a deductible of $150, a $250 healthcare consultation will cost you $150 and your insurance will cover $100. The lower the deductible, the better because you will have to pay less out of pocket if you need to make a claim.

Read the full terms and conditions (and the fine print!)

Always read the full terms and conditions. Yes, it’s boring and full of wordy sentences but it’s the only way to know about exclusions, limits, coverage, and more. If something is unclear, reach out to customer service—this is always a good way to see how fast the company replies and how straightforward it is to deal with them.

Here are a few points to consider when making a decision:

• What’s not covered? Look for exclusions—pre-existing medical conditions are common, as well as high-risk activities and travel advisories (i.e. if your government explicitly recommends avoiding an area or a country).
• Are you covered for a single destination or multiple countries? This is important to know if you’re planning to take side trips abroad during your WHV.
• What are the coverage limits? What are the “eligible costs”? What are the deductibles?
• When can you make a claim? What’s the claim process and timeline?
• How long does the plan cover you? Can the plan be extended if needed?

There is no right or wrong answer; the key is to understand what you’re signing up for!