Why is there a large difference in travel Insurance or holiday insurance over 70 to be exact premiums when the policies are similar?
Here is a question a client posed asking for travel insurance over 70: I have been comparing travel insurance for two people over 55 for a week in Europe. I have checked the excess details and there is no considerable difference between the different insurers. The policies I viewed are almost identical and where I have seen differences, they are negligible. So why the difference?
Why have I seen policies with premiums as high as $150 and some low as $35 (and the insurance is covered by big insurers for the low ones I found too for holiday insurance over 70). I looked at the small print and again from what I could make of it, there was no considerable difference. What am I missing?
Ok, here is what I have found out; once one sets aside the stuff sold by travel agents, the difference tends to sit on several points and here are 3 that come to minds:
A. Method of sales and marketing: companies focusing up to selling on the internet have lower overheads compared to others.
B. Claims policy of the company concerned and how they contest it. Some companies keep the premiums low by contesting every last penny of every claim and in effect paying out next to nothing. Some others charge more but pay out more readily for these travel insurance over 70 particularly.
C. Method of conservative underwriting i.e. how they treat “substandard lives.” Some policies are only offered at standard rates to people who in effect have never had a day’s illness in their lives.( All there in the small print, if you could understand it.) If you’ve ever been near a hospital for anything or if your parents died before they were 80 you aren’t covered, even if they’ve taken your premium.
If you are looking holiday insurance over 70, read the small print as carefully as you can and feel free to ask the questions that pertain to you the most.
And always remember that no company is best for everyone, do your home work on the ones you like.