MYTH: Travel insurance doesn't pay out

BUSTED: Insurance companies exist in order to help mitigate unforeseen and sudden events, with a view to making an insured financially “whole” again. Any insurance company’s reputation rests on its ability to make good on its promise to honour the premiums it receives. In the case of travel insurance, Allianz Global Assistance has an excellent track record in Canada, with exceptionally low claims denial rates. In 2015, AGA recorded a 92.5% payout rate.

Further, Allianz Global Assistance offers a straightforward way for clients to file and collect their claim amount for those events covered under the policy such as trip cancellation, baggage loss, stolen passport, emergency medical etc. Clients and advisorsalike should take heart that travel insurance provides sound and reliable trip protection. Clients are best encouraged to carefully read their travel insurance policy to understand the benefits, exclusions and limitations. When they have questions, you are the reliable source and trusted expert to provide clarification. Also, the Agency Services team is available to help.

*Based on Assisted Medical Cases, all business (not just underwritten) from Jan. 1- Dec. 31, 2015. Excludes fees paid for Case fees or Medical Records.

MYTH: Credit cards provide sufficient travel insurance coverage

BUSTED: Many credit cards do not cover everything a client requires, such as coverage for specific types of emergencies or Trip Cancellation and Interruption. Also, credit cards, homeowner's policies, and travel insurance purchased from a bank may provide limited coverage, carry stricter exclusions or higher deductibles. Depending on the type of card the client has benefits may vary.

Advisors can leverage these talking points to help increase a client’s awareness and understanding of the variations between travel insurance options as these are not all created equally. Travel insurance policies can cater to different age groups, focus on a variety of vacation activities and international destinations. As a knowledgeable advisor, you can zero-in on a client’s precise needs and recommend the most appropriate coverage to ensure that they and their trip are protected. Your value-add service is made easier thanks to Allianz Global Assistance’s extensive and generous coverage options which are well-priced for the comfort they command.

MYTH: It's cheaper to buy travel insurance online

BUSTED: Attractively low price-points should be viewed with caution as they are likely to offer insufficient coverage, or the wrong type of coverage, leaving clients invariably disappointed (and at risk) when they find themselves out-of-pocket in a difficult situation without the insurance they thought they had. The budget-sensitive, “do-it-myself” traveller might save some pennies upfront only to dole out considerably more money later in a sudden and unforeseen circumstance.

The reality is that Advisors have direct access to more navigation and flexible options on behalf of the client that provide comprehensive coverage at a reasonable price, and deliver the value a client expects.