Out-of-country provincial limits.  Provincial health plans provide only limited coverage for medical treatment and hospital costs outside Canada.  For example, Ontario’s plan usually caps daily coverage at a maximum of just $400, while Alberta’s plan is even stingier, with a daily maximum of only $150.  When you consider that a treatment in a Florida hospital can cost upwards of $10,000 a day, it’s easy to see that provincial coverages fall woefully short – and you will be responsible for making up the difference.

In-country provincial limits.  The Canada Health Act stipulates that all Canadians have the right to necessary medical services.  That is why all provinces and territories have reciprocal agreements that extend coverage from one province or territory to another – but only up to a point.  Travel in Canada, beyond your province or territory of residence, and you could personally be on the hook for many of the medical costs you incur.  For instance, Ontario does not generally cover prescriptions or ambulance costs and Quebec’s plan is limited to hospital costs.

Credit card coverage limits.  Your credit card may come with travel insurance as part of your annual fee.  But make sure you clearly understand what is covered or you could end up facing major medical bills.  Many credit cards have very low coverage limits.  Your card’s plan could include stringent eligibility requirements, including restrictions on your age or any pre-existing medical conditions; it may limit the number of days of coverage by the length of an individual trip or a maximum number of days per year; and it may require that you follow a rigorous set of steps to prove your claim for out-of-country health care assistance.  If the details of your credit card’s travel insurance don’t add up to adequate coverage, you should definitely consider purchasing additional travel medical insurance.

Group coverage limits.  The same holds true for group medical insurance through your employer.  Check out the fine print to see whether your group plan includes restrictions or limitations that could cause you to end up paying substantial medical bills out of your own pocket.  If that’s the case, buying additional travel medical insurance can be the answer.

Nobody plans on having a medical emergency while on holiday – but you can plan to avoid the financial consequences.  Your financial or insurance advisor can help you select the right medical insurance for your situation.  For example, if you travel out of country extensively – either on extended vacations or for business – your advisor will cross-check your other insurance policies to ensure there are no restrictions on coverage while you’re living out of Canada.  Buying travel insurance is easy and economical – making sure it’s the right plan for you can take some expert assistance.

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. For more information on this topic or on any other investment or financial matters, please contact your Investors Group Consultant. Insurance products and services distributed in Quebec by Les Services Investors Limitee (a financial services firm), and elsewhere in Canada through I.G. Insurance Services Inc.  (insurance license sponsored by The Great-West Life Assurance Company).