The story of the “million dollar baby” has been a hot topic in the news of late: After a couple’s daughter was born prematurely while they were vacationing in Hawaii, the parents ended up on the hook for nearly $1 million in medical costs. While this vacationing couple did have travel insurance, their provider ended up denying their claim.
Understandably, this nightmare scenario has many travellers concerned. Travel insurance is something we buy for peace of mind—but what if that coverage doesn’t actually come through when we need it most? Luckily, if you take your time and keep yourself informed, you should be able to avoid a situation where your claim is denied.
To help clear up the confusion, our own Robin Ingle spoke to FORUM Magazine on being clear about the exclusions of your insurance policy.
Key Takeaway Points
- Your insurance claim can be denied for a “pre-existing condition” that is either not disclosed to the insurer or that is explicitly excluded from the terms of your insurance policy. This is why it’s important to know everything that’s in your medical record when you purchase insurance—and to carefully check the terms of your policy.
- An insurance policy typically covers only the person named on the policy—that is, your insurance policy is only meant to cover you. Your newborn baby will not be covered under your policy unless it specifically includes maternity benefits.
- Many insurance policies explicitly exclude coverage for newborns when you are travelling in the third trimester of your pregnancy. And some will exclude any care for newborn babies. It’s important to always read the fine print of your policy so you understand exactly what to expect—especially when you are pregnant or when you have any other sensitive, changing condition.
- As always: if you have any lingering questions, make sure you clear them up by asking the experts!