Next to having your passport ready, the most important aspect of planning travel outside Canada is to ensure you have medical insurance coverage.
A recent poll by TD Insurance suggests a surprising number of people are skipping this step. Without doubt, travel costs have been caught up in the rise of inflation over the past year or so. But cutting costs by not buying travel medical insurance is risky in the extreme.
The TD poll asked participants who are likely to travel in the next year if they would buy travel medical and trip cancellation insurance. Only 27 per cent of people aged 18 to 34 said yes, as did 39 per cent of people over the age of 35.
My wife and I bought a year’s travel medical coverage for $182.21 earlier this year, which isn’t cheap. But in comparison to the cost of medical care in a foreign country, it’s close to nothing. A hospital visit in the United States could cost in the tens of thousands of dollars if you have to stay a night or two.
A Google search will provide lots options for getting quotes on travel medical insurance. You may already have this coverage through your benefits plan at work. Or, your credit card may cover you.
RewardsCanada recently put together a detailed comparison of how various cards compare in this type of coverage. Included is information on age eligibility and stabilization period, which refers to the length of time a pre-existing health condition must been stable prior to travel. Claims can be rejected if you don’t meet stability requirements for pre-existing health issues.
If you need to cut costs to afford a trip, travel medical coverage is more vital than trip cancellation. Money lost to a cancelled trip is limited by the plans you made. A medical emergency while you’re out of the country could be an open-ended expense.
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Rob’s personal finance reading list
Seniors and the 25-per-cent mortgage
I could warn you to help keep your elderly parents safe from scammers, or I could just point you to this utter disgrace. A reno scam where seniors end up with mortgages with 25-per-cent interest.
Renting while Black
A first-hand account of how race makes Toronto’s tight rental market even tougher to deal with. “I had lived in New York for three years, and was no stranger to a competitive housing market. But something about our search in Toronto felt eerie.”
Five dog breeds with expensive health issues
Pay attention to this list of popular dogs with more than their share of potential health problems. Vet bills can be huge.
Canada’s 1 per cent
Find out where your net worth compares to others, including the top 1 per cent.
We want to hear from you
The Globe is looking for people under the age of 40 to participate in our paycheque project series. It’s a non-judgmental look at how much young Canadians are earning – and how they are spending – their monthly paycheques. We’re especially keen to hear from the struggling, the self-employed, gig workers, restaurant and retail workers, remote workers, students (who are working) and renters in both big cities and small towns. If you want to take part, e-mail Globe editor Roma Luciw – at rluciw@globeandmail.com – to share your story.
Ask Rob
Q: Thanks for your recent column on changes to the registered education savings plan. We have done well to max out contributions to our child’s RESP and increase its value through investment. Now that she is 16, it’s looking less likely that she will go to university or college. What are our options for helping her take advantage of these funds if she is not in a major degree or diploma program? Do part-time studies qualify? What about work-training programs like in the trades?
A: As a parent of 20-somethings, I can tell you that kids change their minds about things as they get older. You may yet get some use out of that RESP. Here’s a list of post-secondary schools eligible for RESP use, including trade schools and institutions that focus on training in areas such as business, tech, esthetics, the arts and more. Apprenticeships are also eligible. RESPs can stay open for 36 years, so there’s lots of time to decide. And, yes, RESPs can be used for part-time studies.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.
Today’s financial tool
An introduction to investing in Canada in 22 languages. Brought to you by the Ontario Securities Commission’s Get Smarter About Money website.
The money-free zone
The 100 best debut albums. There’s a boomerish slant in these choices, but still lots of variety and great picks.
From the Twitterverse
A decades old interview with Warren Buffett. A pleasure to hear his level-headed, logical thinking on investing.
ICYMI
What I’ve been writing about
- The First Home Savings Account just launched: Who should have one, who offers them and key rules
- The 5-per-cent GIC is fading into the sunset – with one exception
- What an honest federal government would tell millennials and Gen Z about their chances of getting into the housing market
More Rob Carrick and money coverage
Subscribe to Stress Test on Apple podcasts or Spotify. For more money stories, follow me on Instagram and Twitter, and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group.
Even more coverage from Rob Carrick:
- 🎧 Catch up on Stress Test: Why millennials and Gen Z are Alberta-bound for a more affordable life • Rising interest rates brought pain for new homeowners – and opportunity for house hunters • Why more Canadians are choosing to be childfree or delay parenthood • Love in the time of inflation: How to manage rising costs when dating • You're not bad at money – you're suffering from money shame • Retirement might look different for Gen Z and millennials. Here's how to plan for it • Recession-beating tips for the job market, housing, investing and the cost of life • Is the middle class dead for millennials and Gen Z?
- ✔️ The housing file: A house isn’t special. Get your head straight about the reality of home ownership • The good, the sad and the unaffordable: Saving for a home down payment in Canada’s big cities • Property taxes are popping in some cities – how worried should you be about other tax hikes? • Our other real-estate problem – people have too much wealth tied up in houses • Borrowers and savers, here’s how to time the eventual rollback of interest rates
- 📈 Investing: Canada's top digital broker is TD Direct Investing, with an assist from the TD Easy Trade app • 2023 Globe and Mail ETF buyer's guide part one: Canadian equity ETFs • For the ultimate in cheap investing, check out the Freedom .08 ETF Portfolio • Yes, there is risk in Canadian bank deposits for the unwary and complacent • CDIC covers bank deposits, but who protects your investments if your broker goes bust? • Answers to your questions about the low-risk ETF paying almost 5% • Happy fifth birthday to one of the all-time best investing products for everyday people • An investing strategy that wins cleanly over the long term by outperforming in bad years like 2022
- 💰 Your money: Mortgage holders, savers and GIC investors, it’s time to change your thinking on interest rates • How much debt is each generation of Canadians carrying, and how do you compare? • For the sake of their financial futures, young people should leave Toronto and Vancouver • This practical new spin on a savings account might just peel you away from your big bank • Rental fraud grows amid rise in fake, falsified tenant applications • Are Canadians worse off financially now than in the 1980s? • From groceries to auto loans, here’s how much more it costs to live right now • When saving for retirement, should you change your asset mix over the course of your career? • Do retirement income needs always rise alongside inflation? Not necessarily • When the bank suggests you lock in your variable rate mortgage, it has an angle
Rob Carrick