The Ins and Outs of Trip Insurance

Last fall, we got a letter from Undercurrent subscriber Peg who got a shock when she tried to renew her dive trip insurance plan with Divers Alert Network (DAN). She had regularly paid for the top-of-the-line Guardian plan but was told she could do so no longer because she was too old -- DAN no longer offered the Guardian plan to those age 70 and over. When she called DAN to double-check, she was told it was a new decision made by its underwriter, AIG, who didn't want to insure anyone over the seven-decade mark. "I thought 70 was the new 60? Apparently not," our subscriber wrote.

Frank Hall and Carole Ott (Floyds Knobs, IN) are long-time DAN members, but these active, healthy divers were also told that anyone over 70 is no longer eligible for the Guardian-level plan. "DAN said they are working with AIG to try to get this restriction removed, but no guarantees," Ott told us. "I'm shocked that DAN ever agreed to accept this restriction to begin with; they should know better." Yes, especially when the majority of divers purchasing trip insurance are over a certain age and not getting any younger.

When we checked with DAN about this in December, we got this reply from Rachelle Deal, its vice president of marketing: "It is true we are working with our underwriters to change the program to support those over 70. This is a substantial and lengthy process, as each state has its own requirements and insurance regulations. The new program is almost ready for launch, and will once again make coverage available for members over 70. DAN is committed to providing the best dive accident coverage available to all age groups."

But this new program seems to be delayed. Diver Bob Weybrecht (Boca Raton, FL) went online to renew his DAN dive insurance, but when he got to the selection page, it read "No coverage available." "When I called DAN, I was informed that as of January 1, they are no longer offering dive insurance to divers 70 and older," Weybrecht wrote. "Last year, they had dropped the Guardian option for older divers. Now it's all options gone. The only benefit currently available to 70-plus divers is the $100,000 Emergency Evacuation, provided the accident occurs more than 50 miles from home. There has been no notification that this change was coming, and their Dive Insurance page still states 'Available for all DAN members.' I imagine they are still trying to get an underwriter, but in the meantime, all older divers should be aware of what they will find when DAN renewal time comes."

The Factors: Your Age and Your Trip's Cost

So, is setting age limits for purchasing travel insurance becoming more common? We checked with Stan Sandberg, co-founder of the website www.travelinsurance.com, which compares various trip insurance plans, to see if this is a trend He said he found AIG's move "a little surprising," because insurance companies must get their policies approved by each state's insurance agency, and if they make any changes, they need to file all over again.

"Insurance products evolve over time, and you start to see plans change their covered reasons and benefits," Sandberg says. "I've seen age limitations on plans that are medical-only, but I have not seen trip insurance plans that are modified by an age cut-off. That's not to say they can't do that, however. A cut-off point of 70 does seem low, but when you're talking about a hazardous activity, that may be the driving factor."

The two factors that determine the price of a trip insurance plan are the total cost of the trip (a dive trip that costs $2,000 in airfare and hotel will be less costly to insure than a $20,000 multi-week extravaganza in Raja Ampat) and the policyholder's age. So, a trip policy will cost more for divers in their 70s compared to those in their 40s. While some insurance plans have an age limit, they're typically medical-only travel policies, but for most trip cancellation policies, Sandberg says, "travelers won't start seeing fewer plans until they celebrate their 101st birthday."

Looking at insurance plans for a 72-year-old that have medical and evacuation coverage, but not trip cancellation (similar to DAN's Guardian plan), Sandberg found a range of costs from $33 to $148.

What's Covered, What's Not

Whether you're a DAN member or not, what should seasoned divers consider when purchasing travel insurance -- which includes trip cancellation, emergency medical coverage and emergency evacuation coverage -- for an overseas dive trip?

First off, Medicare will not provide coverage when you leave the country, so if you want coverage, you must purchase a private supplemental insurance program with travel coverage. A trip insurance policy should fill in the gaps.

When evaluating plans, divers specifically should focus on two considerations: whether it has an exclusion for either solo diving, or for diving below a certain depth. One plan may have a scuba exclusion unless you're accompanied by a divemaster or dive below 100 feet; another plan could exclude diving below 120 feet, with or without a divemaster. Plans with optional hazardous sports coverage will provide medical coverage if you go below 130 feet and you're PADI or NAUI certified, and divers age 70-plus are eligible for them. "The variable pricing based on age only impacts the base cost of travel insurance, so an upgrade to hazardous sports coverage won't be more for a 70-year-old than a 25-year-old." says Sandberg. One example: the RoamRight Elite plan is $73 for a 72-year-old, and an additional $18.25 for a hazardous sports coverage upgrade (www.tinyurl.com/t6hujtc).

If you have pre-existing medical conditions, you'll see your coverage options narrow somewhat (a pre-existing condition is defined as a prior injury, illness or disease you sought care for six to 12 months prior to the start of the policy date). Most policies exclude losses that stem from a pre-existing condition, but some policies offer a "pre-existing condition exclusion waiver." To qualify for that, you'll need to purchase the policy within a certain timeframe (usually seven to 21 days from when you made your initial trip payment), and you'll need to insure 100 percent of your trip costs.

Also, you need to be physically able to travel when your trip starts. "That requirement is designed to prevent someone with a pre-existing condition that flares up two days before they leave for their trip from hoping they'll get some level of protection from the waiver," says Sandberg. He cited April Travel Protection as one provider that lowers the price of its policy if you don't qualify for the pre-existing condition waiver.

How About Annual or Group Plans?

If you regularly go on dive trips, should you get an annual plan versus one for a single trip? Sandberg says an annual plan will be more cost-effective if you're taking four or more trips a year. Those plans typically offer medical and evacuation coverage, but not trip cancellation; however, April Travel Protection has an annual plan that offers a range of trip cancellation coverage options, ranging from $2,000 to $5,000 (www.us.april-international.com/en).

But annual plans have cumulative limits. "Say you're on your first trip of the year, and you use up $3,000 of trip cancellation," says Sandberg. "You still have other benefits under the plan, but for other trips, you don't have any trip cancellation coverage left. And if you exhausted medical coverage on the first trip, no extra is covered."

If you're an older diver who enjoys group trips booked through, say, your local dive shop, a group policy could be a good idea. The cost of insurance is solely dependent on the trip cost, not the traveler's age. All travelers have to be on the same itinerary, and there must be at least 10 people on the trip. "If you meet those requirements, and all travelers are age 65 and above, I highly recommend looking at that because it may be more cost-efficient," says Sandberg.

While most group plans don't have the hazardous sport coverage upgrades, Sandberg says one that does is Global Trip Protection Group Pro, which starts at $57 per person. (www.globaltripprotection.com).

So if DAN's underwriter no longer lets it offer trip insurance to its most loyal members -- senior divers -- it's time to look elsewhere. You won't be turned away by other underwriters because of your age, but do make sure to ask if there's an exclusion for scuba and the type of diving you intend to do, and if you need one, ask about the pre-existing condition waiver.

There's a difference between dive trip insurance and dive accident insurance. DAN's dive trip insurance does indeed cover those 70 and older. Rachelle Deal of DAN now tells us it also "offers dive accident insurance coverage options for divers of over 70 years-of-age in all states (with the exceptions of Vermont and Washington). Plus, the Guardian Plan remains available for those of 70 years and older in 39 states."

- Vanessa Richardson