Thursday, November 12, 2009

How Older Travellers Get Hit by Travel Insurance

Why can't older travellers in the over 65 age group get cheap travel insurance? Below we explore five important issues which create this discrepancy.

  1. Statistics are against the Over 65's. Unfortunately insurance providers rely heavily on calculated risk formulas based on several factors including demographics. Which means right now the insurers are not interested in giving a discount to a pensioner who eats healthily, and exercises as part of an active lifestyle. This would however occur if the entire peer group behaved this way and the calculations were updated.

  2. The insurers have different maximum ages for annual and single trip policies. The single trip will tend to offer the higher age limit. No other age group has an upper or lower age limit with such incongruence.
  3. Over 65's can experience medical complexities. Medical issues and illnesses abroad are the major proportion of all travel insurance claims filed each year, and older people receive treatment which is typically more complex and more expensive than younger travellers.
  4. The system discriminates based on age because there are more known variables to price. This means that health care received in the last 12 months, identified health issues which can be managed, and other “what ifs” are used to inflate the over 65's travel insurance costs. The point being that a 21 year old on their first clubbing holiday would have arguably a lot more unknown “what ifs”, but because these cannot be rationalised by a doctor or predicted by a health professional, the youngster gets a unfairly cheap deal.
  5. Good organisation is not always rewarded. A pattern of older people's travel habits shows that they often book a holiday well in advance. The irony is it allows circumstances to interfere with well formulated plans, resulting in cancelled holiday claims. Insurers don't hesitate to factor this in to the price for an over 65's policy.

Technorati tags; over 65, travel insurance.

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