Susan,

But with a separate policy, the pre-existing clause may not matter if you’ve been healthy for a year. Credit card insurance can literally use a random doctor visit to exclude you from anything. That said, it comes down to the individual policy.

Don’t the underwriters cover this off by excluding pre-existing conditions? I mean, if I go to a doctor for X ailment and on my trip a month later make a claim for Y ailment, are you saying you’ve seen credit card insurance deny the claim in these situations? I find this very alarming, I always read the fine print of the policy on cc insurance and have taken for granted that I will be covered as per the limitations of the written policy.

Susan,

Generally, when you get a separate insurance policy, the underwriting applies at the time you get the policy. So if you go on a trip and haven’t had any medical issues before then, your insurance is all good.

Now let’s say you’re relying on credit card insurance. You go on a trip and make a claim. The insurance companies checks your medical records and sees you went to a doctor two months ago. They may deny your claim.

Generally, I prefer separate policies as you can find out exactly what you’re covered for before you depart.

Barry, can you please explain your comment about the underwriting being better on a separate travel insurance policy than on credit card travel insurance?

Thank you for your speedy response Barry. I also appreciated you recommending Robb Engen as a for fee financial planner. He is very thorough and answers any questions promptly. I have been reading all sorts of financial information on blogs, I wish I’d know some of this stuff at least 7 years ago but now I know a fair bit and glad I have a second opinion on some strategies. Thank you. Barb

Barb,

It really comes down to your categories. You say you spend $80K a year on your card, but on what categories e.g. groceries, gas, etc.?

As for the insurance, I typically recommend anyone over 65 to get a separate travel insurance policy from an insurance policy. The underwriting is better compared to credit cards.