Ontario caps payments at $400 a day

Planning a vacation this winter - maybe to a warm, wet and comfortable southern destination?

If so, you'll want to insure your financial comfort level stays high and dry, come what may.

Sure, you expect your vacation to be nothing but good times in good places - but what happens if you're hit by an unforeseen illness or accident? If you also expect that your group or provincial health plans will provide adequate out-of-country coverage, think again.

And even if your trip is to another province or territory, your provincial plan's coverage may come up short.

Without adequate insurance coverage, you could be travelling right into financial disaster, regardless of whether your vacation is scheduled for a few days or a few months, in Canada or out of country.

Here's what you need to know to travel insured and assured:

Out-of-country provincial limits. Provincial health plans cap coverage for medical treatment and hospital costs outside Canada.

For example, Ontario's government plan provides daily coverage to a maximum of just $400 and Alberta's daily maximum is just $150.

Yet, treatment in a Florida hospital can run upwards of $10,000 a day - and you're responsible for the difference.

In-country provincial limits: Under the Canada Health Act, all provinces and territories have reciprocal agreements that extend coverage from one province or territory to another - but there are important restrictions.

For instance, Ontario does not generally cover out-of-province prescriptions or ambulance costs and Quebec 's plan is limited to hospital costs.

So, even travelling in Canada beyond your province of residence, can put you on the hook for many of the medical costs you incur.

Credit card coverage limits. Your credit card may include travel insurance as part of your annual fee or as an "add-on" benefit that you pay.

But, this type of coverage varies widely and many credit cards have very low coverage limits and/or extremely stringent eligibility requirements.

You may be excluded because of your age or if you have a pre-existing medical condition.

There may be limits on the number of days of coverage per trip or per year.

You may be required to follow a rigorous set of steps to prove your claim for out-of-country health assistance.

In short, your credit card's travel insurance may fall well short of adequate coverage.

Group and disability coverage limits. Not all group/disability plans are created equal. Yours may include restrictions or limitations that could mean huge out-of-pocket medical bill payments.

Check the fine print and, if your group plan has coverage or payout limits, top it up by buying additional travel medical insurance.

Whether you travel out of country extensively or infrequently, on business or just for fun, be sure you're comfortably covered.

Travel insurance is your essential - and economical - safety net.

Your financial advisor can evaluate your other insurance policies and provide the expert assistance you need to identify the right travel insurance plans to fill your gaps.

- This column, written and published by Investors Group Financial Services Inc., is presented as a general source of information only and is not intended as a solicitation to buy or sell investments, nor is it intended to provide professional advice including, without limitation, investment, financial, legal, accounting or tax advice. Insurance products and services distributed by I.G. Insurance Services Inc. (Insurance license sponsored outside Quebec by The Great-West Life Assurance Company.)

For more information on this topic or on any other investment or financial matters, please contact your Investors Group Consultant.