I am about to Travel. Should I depend on my Credit Card’s Travel Insurance Policy or should I buy a separate Travel Insurance Policy?

Quite recently, I was asked a simple question: I have my Travel Insurance Policy on my credit card, 

why should I buy a separate policy? My gut reaction was simple: never depend on your credit card

insurance and never buy it from a bank. With twenty years of employment history between various 

financial and financial education firms, my reaction is you should try to go to the correct professional 

to get your financial service. 

As a guy who is licensed to sell Life and Accident Sickness Insurance, I thought I knew what was 

best. After all, I have sold these policies for a few years and I had a sense of them. So, of course, my 

gut said “every individual should buy their own Travel Insurance and buy it from an independent

Insurance Advisor; and never walk into a retail bank branch to do the same. Yet, my mind said 

something else: “are you sure?”. Accordingly, I did research and I was surprised. 

I was surprised by the range and variability of those policies as well as what they cover or don’t cover. 

When I speak to my clients, I try to ensure three things: coverage for the entire length of the trip, 

coverage for a broad array of circumstances and providing enough information so that the policy is 

useful. Accordingly, I ask my clients lots of questions about their health, their trip and their 

circumstances, so that if something bad happens on their trip; their dreams, wishes and/or life will not 

be devastated. 

This provides the first difference. If you walk into a Canadian bank and ask about Travel Insurance, 

most employees will give you a brochure. If you need advice, you will likely get a head shrug because 

either they don’t know, weren’t trained or the law will not allow them to give advice. On the other 

hand, outside of choosing a credit card, the attached Credit Card Travel Insurance doesn't provide 

much choice. So if you go the bank or credit card route, it can be summed up with the following 

saying I tell my daughter: you get what you get and you don’t get upset. 

The second problem with Credit Card Travel Insurance is a result of the cost of health care. As 

Canadians, we rarely think about the cost of health care; yet, it is important to understand the cost of 

care to evaluate the value of the insurance you have. In conversations I have had with representatives 

of ManuLife and Allianz Global Assistance, I am often told that $5 million USD is a good level of 

coverage for travel outside of Canada. In reading an opinion piece by Ross Barkan - on the Guardian’s 

Website (theguardian.com) - I understood why. On June 16, 2020, Mr. Barkan talked about American 

patient who was provided with a $1.1 million hospital bill. While that particular patient received 

COVID-19 care; for our purposes, the bill provides us with a real world example of American health 

care costs. When I looked at a few Canadian Credit Card Travel Insurance Policies, I was saddened to 

see that a number of them would not have been able to pay a claim of $1.1 Million Dollars. The 

policies attached to a ScotiaGold Passport® Visa Card and TD First Class Travel®Visa Infinite* Card 

could only cover the first $1million dollars of the claim. 

One might think that BMO® World Elite™* Mastercard®* 31 Day Medical Protection would be 

enough. After all, it provides $2 million dollars worth of coverage. However, this too is problematic, 

once you consider that a medical emergency would trigger non-medical costs which the policy would 

be expected to cover. For example, if you are travelling with your family, who covers the extra nights 

in the hotel or travel that your family may endure? Additionally, who pays for specialized medical 

flight which might be necessary? $2 million USD is not necessarily sufficient in this case. 

Accordingly, where my standard is to sell the industry standard (i.e. a minimum of $5 million 

coverage), some credit card policies skimp on their coverage hoping clients will not notice. 

The reason why Credit Cards skimp is easy: Credit Card Travel Insurance was never designed to be a 

strong Travel Insurance option. American Express introduced the Platinum Card in 1984 and it was 

one of the first credit cards to have travel insurance. Aimed at an affluent market, the Platinum Card 

was aimed at people who already bought their own travel insurance and had significant personal 

insurance through their employer. Accordingly, the Travel Insurance policy was a secondary form of 

insurance and it was never intended to be the only form of insurance one should have. Think about it 

like the  “gravy on a meal”; while gravy is nice to have, it does not sustain a person. The same is true 

with Health Insurance on Credit Cards.

This is especially true, if one realizes the cost of providing a Travel Insurance Policy. Back in 1984, 

the Platinum Card had an annual fee of $250 USD. It offered 24-hour concierge, travel insurance and 

access to private clubs around the world. If one were to adjust for inflation that fee would be well over 

$625 today. Yet, with such a fee, I have a hard time seeing how that card would make money. 

If Credit Card Travel Insurance was seen as more of a marketing gimmick or secondary solution in 

1984, the product has not changed much since. When I looked at the RBC Visa Infinite Avion Credit 

Card, this “gimmicky” aspect was seen there. RBC Visa Infinite Avion Credit Card’s Travel Insurance 

notes that they provide “unlimited coverage” except in cases where coverage is limited. What is 

remarkable though is the depth and breath of their exceptions. For example, if you are under the age 

of 75:

“...,  this insurance does not pay for any expenses incurred directly or indirectly as a result of: 1. Your 

medical condition or related condition (whether or not the diagnosis has been determined), if at any 

time in the ninety (90) days before you depart on your trip, your medical condition or related 

condition has not been stable. 2. Your heart condition (whether or not the diagnosis has been 

determined), if at any time in the ninety (90) days before you depart on your trip: a. any heart 

condition has not been stable; or b. you have taken nitroglycerin more than once per week specifically 

for the relief of angina pain. 3. Your lung condition (whether or not the diagnosis has been 

determined), if at any time in the ninety (90) days before you depart on your trip: a. any lung 

condition has not been stable; or b. you have been treated with home oxygen or taken oral steroids 

(prednisone or prednisolone) for any lung condition.” 

However, that is only the beginning. There are more than 20 general exclusions from there. While 

National Bank is better, they have similar provisions. National Bank’s Card “emergency medical care 

outside of the province of residence is $5,000,000 per EMC insured per trip” but they have a very 

long itemized list of things which they won’t pay for. Consequently, you are not getting Travel 

Insurance at no cost. With each credit card plan, you are just playing a form of roulette. 

This is even true when one looks at the days of coverage. From PC Financial to ScotiaGold Passport® 

Visa Card, from RBC to CIBC, few companies provide coverage which will last for 29 days. It is true 

that BMO® World Elite™ Mastercard® 31 Day Medical Protection lasts for 31 days, while National 

Bank has a sliding coverage which starts at 60 days (for those under 54) and 0 days for those who are 

over 76 years of age. However, these limitations should not be surprising as we have seen that BMO

and National Bank credit card products have other limitations. 

In reviewing measures like proof of insurability, underwriting and changes of definition, I was equally

as dissatisfied because Travel Insurance Products attached to credit cards fell well below the level of 

expectation I have. Not only do my clients get $5,000,000 of coverage, but they also get a full review 

and advice. I work with my clients to document all their illnesses and then work with the insurer to 

make sure my clients don’t need to be underwritten. This type of thoroughness has its downsides, its 

consequences. I can admit that in one case, a client of mine declared a medical condition. This meant 

that that client had to make a decision: to accept a policy which didn’t include his illness or to pay an 

additional amount to cover the condition. Or put differently, my client had to decide between an 

exclusion or a rating. In my opinion, this was not the best situation, but it could have been worse. That 

is to say, that if the application for a policy is incorrect, the claim could be denied and/or the policy

can be cancelled. We have all heard of a policy being terminated because of a pre-existing condition 

or a claim being denied for the same reason. Therefore, I am happy to do the hard work before 

anything bad has happened. 

This is the type of planning I do and it is the type of planning which is not available from a Credit 

Card Company. 

Some might wonder how many clients travel without checking their Travel Insurance Policy. I would 

probably have a simple answer: too many. For when I talk to people I get the same look out of many 

of them: that look that says I didn’t know. My hope is that with this article a few more people will 

know that Credit Card provided Travel Insurance is not sufficient for an out-of-province trip.