By Sheryl Smolkin

I’ve been thinking about the cost of health and long term care a lot lately because my 88- year old Mom recently had a bad fall and cracked five ribs. She is recovering at home but she is in a lot of pain, and requires 24/7 care for the foreseeable future.

The plan has always been to keep her in her own apartment as long as possible. Fortunately her wonderful, privately-paid caregiver (a registered practical nurse) who normally works 40 hours/week has virtually moved in and is helping us to take excellent care of her. But as costs mount up over the short run, we are beginning to wonder if this will be a luxury she soon can’t afford.

Access to public resources varies across the country, but in Thornhill, Ontario where she lives , I’ve been told that a maximum of one hour a day (and most probably only two hours a week) will be offered to her on the government dime. But I’m grateful that 22 in-house physiotherapy sessions to get her up and moving better and train her to avoid future falls have been approved.

So if health and long-term care are not in your retirement planning radar yet, I have put together a few recent articles that may get you thinking about what you can expect.

On Retire Happy, Donna McCaw writes about Your Health in Retirement: Asking for Help. She cites staggering statistics from the Vancouver based Canadian Men’s Health Foundation about men and heart disease, cancer, diabetes, obesity, alcohol-related deaths as well as suicide. She interviewed recently-retired men who made it their first priority to get healthy and get rid of their “ring around the waist” by embracing fitness and learning to eat healthy.

Life after retirement: Health care costs require careful planning in the Financial Post is by Audrey Miller, the Managing Director of  http://www.eldercaring.ca/. She cites home care costs by the week and by the year (albeit in Ontario) and says as family members and professionals, we need to be better prepared. The cost of care is only going to become more expensive, especially as our public and private resources are reduced. Not only will we soon have more seniors than young people under 15, but our pool of those who are willing to be paid to do this work will also become smaller.

The coming health benefits shock for retirees by Adam Mayers at the Toronto Star reminds us that contrary to what many people believe, glasses, drugs and nursing homes will not in most cases be paid for by our universal health care. He quotes Kevin Dougherty, president of Sun Life Financial Canada who says one reason for the disconnect may be that we form an opinion of the health system through our use of it. Most of us are covered by workplace health plans and we don’t need much from these plans during our earlier years, and into middle age what we do need is covered.

Navigating Retirement healthcare is a comprehensive report from CIBC Wood Gundy discussing health care cost considerations in retirement. The study notes that long-term care is classified as an extended healthcare service under the Canada Health Act but the role of publicly-funded LTC facilities is changing as provincial governments limit the expansion of these facilities by reducing the number of registered nurses, maintaining or decreasing the number of available beds, and tightening the qualifications for acceptance into a facility.

Even if these policies were reversed, an individual’s current wait time of one year will likely increase unless significant expansion of the LTC provision occurs. The result is that a greater number of seniors are paying to enter more expensive for-profit private or semi-private facilities that can cost up to $7,000 or more a month.

Finally, Long-term care costs in Saskatchewan 2014 by Sun Life discusses how residential facilities, retirement homes/residences, government-subsidized home care, adult day care and private home care operate. Government subsidized options including home care are administered by the Regional Health Authority (RHA). As RHA resources are limited, many seniors don’t get the care they need from RHA services and have to rely on private home care services. The provincial tariff for skilled nursing ranges from $42-$70/hour while 24 hour live-in care can cost from $21-30/hr.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

The problem with giving cash or gift cards for Christmas is that the money gets spent and the person receiving the gift often is left with little of long lasting value. Gadgets like the latest video game or smart phone get broken or become obsolete. Clothes may not fit properly to start with, or quickly go out of style.

But if you put the Saskatchewan Pension Plan in your children or grandchildren’s Christmas stocking, you will be giving them a gift that keeps on giving. SPP is a voluntary, money purchase plan you can contribute to in order to help them accumulate funds for retirement.

Anyone between ages 18 and 71 with available RRSP room is eligible to join the 33,000 other people who are already part of SPP. The only way to join SPP is by signing up directly. SPP does not have a sales force and commissions are not paid to anyone for selling the Plan.

Contributions to SPP are permitted up to an annual maximum of $2,500, again, subject to available RRSP room. There is no minimum payment and you decide on the contribution schedule and payment method. For example, choose from one of the following methods:

• By mail (A contribution form is required )
• In person or by online banking at your financial institution
• By phone using your credit card (1-800-667-7153)
• Online, or
• Directly from your bank account on a pre-authorized contribution schedule (PAC)

You can change your contribution level or stop making contributions at any time. One way to incent your family members to learn about the plan and keep on saving is to challenge them by agreeing to match their monthly or annual contributions up to a stated amount.

SPP accounts are locked-in and earn interest until the member retires. If he/she dies before retiring, the funds in the account will be paid to the person’s beneficiary.

SPP allocates 100% of the market rate of return, less operating expenses, to members monthly. Since inception, the fund returns have been an average of 8.1%. The return history in the balanced fund for the last 10 years is shown below.

Balanced fund
Year	Earnings %	MER %
2014	9.10	0.95
2013	15.77	1.00
2012	8.45	1.07
2011	-1.01	1.14
2010	9.42	1.04
2009	12.68	1.01
2008	-16.23	1.00
2007	-0.33	0.94
2006	12.51	0.90
2005	10.13	0.82

Family therapist Carol Mitchell believes so strongly in the Saskatchewan Pension Plan (SPP) that she signed up several of her family members and deposited money into their accounts. She plans to make contributions for these relatives again in 2015.

Mitchell hopes her family members will continue to contribute to SPP above and beyond her gifts to them; however, she recognizes that some years they may have other, more pressing financial priorities. “The flexibility to contribute whatever they can afford to SPP each year is one reason I really like the program,” she says.

“I decided to invest in their futures,” Mitchell continues. “Someday I’m going to die and they are not going to remember they spent the $100 I gave them on a sweater or a dinner out. But when it comes time for their retirement, they’ll remember I believed in them and put money aside in their names.”

By Sheryl Smolkin

My beat is pensions, benefits, personal finance and workplace issues. I enjoy writing for my blog retirementredux.com and posting to my archive website sherylsmolkin.com, but I haven’t put much effort into turning them into a source of income. However, I do write for a living and the exposure certainly helps.

However, I was fascinated by Robb Engen’s presentation at Canadian Personal Finance Conference on how he turned his blog into a profitable online business. He says one general rule of blogging is that those who get into it strictly to make money tend to fail. A blog needs to be compelling enough not just for people to want to read and share your content but to keep you motivated to continue writing. But he says blogging can be fairly lucrative if you stick with it long enough, and the truth is there are lots of bloggers who make a pretty good living online.

After reading Robb’s story, I decided to see what other bloggers had to say about ways they have parlayed their personal interest blogs into a source of income.

Canadian Opportunity is a website geared to Canada’s work at home online community. The post How to make money blogging in Canada notes that it is important to blog about something that interests you. If you’re a stay at home mom blog about parenting, provide tips to new parents or about an illness one of your children experienced. If you’re a golfer, fisherman or runner you may want to provide interesting content on these subjects. One of the most popular ways to make money on any blog is with Google Adsense. It’s free and by joining you will allow Google to place various types of advertising on your blog that will be automatically targeted to your specific audience.

How Mommy Bloggers Make Money on Canadian Family reports that some of the best (and most addictive) bloggers gain recognition by pouring their hearts out on the screen. They report from the trenches of motherhood, with humour, unabashed honesty and style. Over time, with hard work, talent and perseverance, they hone their craft and build a sizeable audience. Some bloggers decide to sell merchandise to their fans through sites such as etsy.com and cafépress.com. You can buy your favourite blogger’s artwork and crafts or get their best quotes on a mug or T-shirt to help support them (so they can continue to bring you free content).

How To Create A Profitable Blog on Retire@21 focuses more on the technical side of getting a blog up and running like selecting a domain name and installing WordPress, using Google tools and setting up RSS, email subscriptions and a sitemap. If you are still intimidated, there are many small businesses that will help you set up your blog for a nominal amount or better still, your kid or your grandkids can probably wade through the technical details in a flash.

Can you make money without selling your soul? Jeff Goins says if selling stuff makes your skin crawl, you can use a blog to build an online presence and brand and then use it to land consulting or freelance writing jobs.. He has had several people contact him about things like writing an eBook, SEO, and other topics he has blogged about.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

Every December you resolve to spend less on Christmas and every January you have a huge credit card bill that blows the family budget out of the water. Part of the problem is that you are so busy and that in desperation, you end up doing a “hit and run” at the mall on the busiest shopping days of the year.

Here are 10 ideas how you can reduce costs while at the same time giving more meaningful gifts that create lasting memories for your family and friends.

1. Buy fewer gifts: If you normally buy multiple gifts for your children, explain to them you will be buying one gift this year and that each of them can select a charity of their choice to which you will make a donation in their name.
2. Give your time: Make coupon that can be redeemed for your time. Seniors will appreciate snow shovelling, lawn mowing and rides to appointments. Kids will love cooking lessons or homework help.
3. Meals on wheels: Is your best friend coping with three children under five? Has your neighbour just come home from the hospital after surgery? Nutritious, tasty frozen meals that can be easily warmed up are always welcome.
4. Entertainment: Regardless of the size of your community, there are sports events, concerts and school plays. While professional theatre and sports tickets can be expensive, local events are much less costly. Do some research and plan a memorable and unexpected outing for two.
5. Re-gift: Re-gifting is only a no-no if you aren’t upfront about it. Gently-read books in good condition make a great gift. If you are downsizing, your kids or grandkids may be thrilled to have the vase or tea set they have admired for years.
6. Pictures, videos: With the advent of digital photography, most people no longer actually print pictures. I realized this when my granddaughter asked me why there were no pictures of her on my walls. Print and frame special family pictures or put them together in a small, inexpensive purse-sized album.
7. Shop online: Shopping online can save you time and money. You can comparison shop to find the best prices. Often prices are lower than in “bricks and mortar” stores. Free delivery in many cases is a real bonus, particularly if your friends and family members are spread across the country.
8. Give consumables: Most people have enough stuff. But if your cranberry sauce, apple pie or homemade chocolate truffles are the talk of the town, they make great gifts for teachers, neighbours and your hairdresser. Unless it’s a “top-secret” recipe consider including it with the gift.
9. Cookie exchanges: Between people dropping in and house guests staying for extended periods, the holiday period means lots of entertaining. One way to keep the cookie jar full of a variety of yummy treats is for a group of friends or neighbours to each bake multiple batches of their specialty and arrange a cookie exchange.
10. Boxing Day shopping: By Boxing Day the last thing you may want to think about is next Christmas, but it’s the best time to get deeply-discounted wrapping paper, cards and ribbons. Also, if electronics like a TV or computer are on your list, the most economical approach may be to give an IOU and actually buy the item between Christmas and New Year’s.

Also see: Budget-friendly holiday gifts

By Sheryl Smolkin

After complaining for weeks that it is just too early for holiday window displays and Christmas music, with less than a month until the big day, it is finally the right time to start your Christmas shopping.

But unless you are careful you can blow your budget and end up with a huge credit card bill in January and no money to pay for it. According to the 2014 Post Holiday Spending Survey released by data collection company Field Agent, last year Saskatchewan residents planned to spend $698 but on average, actually spent 15.9% more, or $809.

To give you some ideas how to personalize your gifts and save some money, this week’s Best from the Blogosphere includes links to five websites that will give you some very good ideas where to start, even if like me, you are not in the least bit “crafty.”

Buy Nothing Christmas was originally started by Canadian Mennonites to help de-commercialize Christmas. For a great list of homemade gift ideas click here. I like food gifts such as made from scratch cookie kits, homemade granola and a spice sampler using spices bought in bulk and packed in pretty jars,

How to Not Go Broke Holiday Shopping includes some great tips for saving money. For example, if you get a great deal on a gift for your sister-in-law, don’t also pick one up for yourself. Remember you’ll be receiving gifts from others this season and your budget will thank you. Also, help to avoid temptation by unsubscribing from retailers’ email lists.

In Eight Simple Ways to Spend Less This Christmas the author suggests that another simple way to spend less on gifts is to buy or sell gift cards online. Find a gift card for a store that you’re interested in purchasing from and you could wind up buying a hundred dollars’ worth of gifts for seventy bucks. Take a look at GiftCardsWild for what’s currently available.

There are some interesting ideas in 48 Xmas MoneySaving Tips. For example, if you are traveling to visit friends and family, book your train tickets as soon as possible. Cut out gifts for adult family members and give gifts only to the children. Avoid the cost of long distance telephone calls by chatting for free with faraway family and friends on Skype or other apps.

And finally 39 Frugal Tips for Saving Money at Christmas suggests that instead of investing in pricey wrapping paper and gift bags that are immediately consigned to the recycle bin, wrap gifts with coloured comics from your newspaper or your children’s artwork. You can also use inexpensive tissue paper that you’ve saved from other gifts throughout the year decorated with stickers or even just the words ‘Merry Christmas.”

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

SNOWBIRDS SERIES
By Sheryl Smolkin

For many seniors, no longer having time constraints on when or how long they travel can travel for is a very big bonus of being retired. And winter is a prime period for travelling snowbirds who want to get away from the frigid weather in most parts of Canada. A few weeks or more in Florida or Arizona are typical destinations for many older Canadians. But others seeking more adventurous and less costly vacations are planning to visit a myriad of more exotic locations like Ecuador, Uruguay, Panama, Mexico, Malaysia and Thailand.

Whether you are planning to travel across the continent or around the world, the 10 safety tips below will help to ensure you get to your destination and back without any unnecessary delays or nasty surprises.

1. Check your visa: Find out if you need a visa, how to get it and how long it is good for. When my husband and I planned a trip to Russia and Ukraine with a synagogue group, I didn’t carefully check the dates when I picked up our visas. We were planning to travel in May and the date on my visa was correct, but my husband’s said March. We could not get on the plane to Moscow from our stop-over in Munich and the problem couldn’t be fixed, so we lost a week’s vacation and thousands of dollars. Visa problems are not covered by trip interruption insurance.
2. Credit cards: Take several credit cards and keep them in different places so you have backup if your card or your wallet is stolen. Make sure to call your bank and credit card companies before you leave. Otherwise if they see an unusual spending pattern on your card, it may be refused. Also take photocopies of your cards and record the telephone numbers you have to call if they are lost or stolen so you can move quickly if necessary.
3. Travel insurance: Review any travel insurance you have on credit cards, through work or other groups to ensure it covers the duration of your trip and the kinds of activities you are planning. Otherwise you may need additional coverage. Complete all medical information accurately or coverage may be denied. Understand the “pre-existing conditions” exemptions under the policy.
4. Pack light: This is definitely a case of “do as I say, not as I do.” I always take far too much! The ideal of course, is to take one small bag so you don’t have to spend hours waiting for checked baggage or risk that your bags don’t arrive when you do. Also if you have large heavy bags you are much less mobile and you run a greater risk of straining muscles or falling.
5. Check with your doctor: Schedule a doctor’s appointment before you leave. Renew your prescriptions for the length of time you will be away and pack them in the original container. Take enough for a few days in your carry-on luggage in case your bags are lost. Ask if you need any additional vaccinations before you go. Depending on your destination, your doctor may refer you to a travel clinic.
6. Avoid pick pockets: Be really alert and aware of your purse or wallet at all times. Ideally women should wear a cross-body purse that cannot be snatched off your shoulder. Men, do not put your wallet in your back pocket. Travel clothing has lots of hidden pockets with velcro flaps where you can safely hide your valuables. Don’t ever put your wallet down on a counter and take your eyes off it when you are making a purchase.
7. Other valuables: Leave your diamond rings and other flashy, expensive jewelry at home. I feel really peculiar without a wedding ring and there are often formal nights on cruises so I bought some glitzy fakes that I travel with instead. But thieves often don’t know the difference so don’t wear anything too sparkly in dangerous areas. And always use the safe in your room for extra cash, credit cards, your passports and small electronics.
8. Ask for special services: Airports are vast and travelers typically have to walk very long distances to get from the entrance to check-in, through security and then to the gates. Ask for wheelchair service if you need it. If the airline provides the service there is typically no charge.
9. Be realistic: If you haven’t skied in 30 years, don’t plan a vacation skiing in the Alps. Unless you are an experienced scuba diver and you are in excellent health, age 80 is probably not a good time to do a deep dive on the Great Barrier Reef. A bus trip to 15 cities in 20 days will leave you exhausted and the only thing you will remember about your holiday is the pictures.
10. Leave contact information: Make sure family members have a copy of your itinerary and telephone numbers for your hotels, tour operators etc. who can reach you. These days the texting, data and calling features of your smart phone can be activated all over the world, but unless you get a roaming package before you leave or buy a local SIM card for your unlocked phone, it can be very expensive. While you may want to “get off the grid” and turn off your electronics, there are definite advantages to having connectivity in a health or travel emergency.

 

Also read:
Martin Firestone: What Snowbirds Need to Know About Travel Insurance

By Sheryl Smolkin

This week we are back to everyone’s favourite topic – how to get ready for retirement. If you haven’t already maxed out your 2015 Saskatchewan Pension Plan, RRSP and TFSA contributions, now is the time to make sure you are “on plan” before you start spending more than you can afford in the run up to the holiday season.

If you are not a Globe & Mail regular reader, check out the new Globe Retirement series. I particularly like Boomer retirement planning: A nine-step guide to ease your mind by our perennial favourite Rob Carrick. The publication’s online fee disclosure tool will show you how the advisory fees you pay compare with other investors.

Michael James on Money writes about Retirement Spending Stages. While there is evidence that older seniors spend less, he says spending too much in the early years of retirement could mean in your later years all you have left to live on is government benefits and any pension streams you may have.

In Save like this, retire like that – My story about early retirement in style Mark Seed interviews “RBull” from Canadian Money Forum who retired in 2014 in his 50s. He estimates that his savings rate averaged a little over 20% for about 20+ years. Approximately two years before retiring he sold almost all his stock positions to purchase broad market ETFs to simplify the portfolio, increase diversity and keep fees low.

Dan Wesley who blogs at Our Big Fat Wallet is in an enviable position. His TFSA and RRSP are Maxed Out and he is trying to decide where where to put his additional savings. Options include paying down the mortgage, opening a TFSA for his wife and opening a taxable investment account.

In MoneySense, Jon Chevreau discusses Saving mistakes you’re probably making. The single biggest mistake of course is NOT saving at all, says Adrian Mastracci, president of Vancouver-based KCM Wealth Management Inc. The easiest thing in the world is to spend 100% of what you earn or even worse, fall into debt. Chevreau says at the root of the failing-to-save mistake is the failing-to-live-within-your-means error.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

SNOWBIRDS SERIES
By Sheryl Smolkin

If you are retired, your home is likely one of your most valuable assets. So if you are a snowbird who spends several months each winter in a warmer climate, it’s important to protect your investment by winterizing your vacant house before you leave.

Here are ten things to do before you head for the airport:

1. Thermostat: Adjust your thermostat to a lower temperature but do not turn off the heat completely as your pipes may freeze.
2. Plumbing: Turn off the water and open all the taps to drain the pipes. Don’t forget taps in the garage or outside in the yard. Also flush the toilet to clear the water from the tank and bowl. Then fill the bowl with antifreeze, preferably a non-toxic RV solution.
3. Refrigerator: Get rid of all the perishable foods. Check any condiments that will be stale-dated when you get back and dispose of them as well. It’s also a good time to clean out your freezer.
4. Unplug small appliances: Unplug small kitchen appliances like the TV, computers and other electrical equipment that will be unused for an extended period. Electronic devices left plugged in, even when turned off, still use a significant amount of power. It’s called phantom power, and it’s costing you money.
5. Stop the mail: There is nothing that screams “vacant house” like a stuffed mail box and a front porch littered with fliers. Have the post office hold your mail and stop your newspapers. Ask a neighbor get rid of unsolicited fliers etc. periodically.
6. Snow: Arrange to have your driveway and walk cleaned after every snowfall so it looks like someone is living there. Depending on when you plan to return, you will appreciate not having to climb over frozen piles to get in your door.
7. Theft avoidance: Remove or hide electronics, televisions and computers so they can’t be seen by anyone looking in the window. Store jewelry and important documents in a safe or safety deposit box. Close the blinds and curtains and put lights on automatic timers.
8. Check with your home insurance company: Insurance-Canada.ca offers home insurance tips for snowbirds. The standard home insurance policy requires that in the heating season either you arrange for a competent person to enter your home and check daily for heat loss and freezing; or drain your home’s plumbing system and water containers, similar to a cottage owner.
9. Talk to your neighbours: Keep your neighbours informed about your travel plans. Exchange email addresses and telephone numbers so you can be quickly contacted if something out-of-the-ordinary occurs. Let them know if anyone will be using your home in your absence or coming at regular intervals to clean or check up on the property.
10. Security alarm: Double check that all windows and doors are locked. If you have a security system, make sure it is operating and turned on before you go. Ensure that anyone who is checking on the house or that may be staying there for any period of time when you are away knows how to disarm and arm the system properly.

By Sheryl Smolkin

Most of the time when I sit down at my computer to write the weekly Best from the Blogosphere post I have absolutely no idea what the theme will be until I read a few articles from other bloggers that send me off on a tangent.

Such was the case this week when the first message in my inbox was from Robb Engen at Boomer and Echo writing about Mischief Managed: How I Went From Credit Card Abuser To Rewards Card Master. He says optimizing credit spending means using one card for groceries and gas, one for dining and entertainment, one for travel and one for everything else. Last year he used six credit cards to earn over $1,500 worth of rewards.

In 2012 Carla Wintersgill wrote in the Toronto Star about How travel hackers maximize loyalty points. She reports on the inventive way American author Chris Guillebeau collected points through the United States Mint. For a year and a half, it was possible to buy U.S. dollar coins directly from the Mint, which included free shipping. Over the course of a few months, he bought $70,000 in coins using a points-collecting credit card and then re-deposited the coins in the bank to pay his bill.

With Black Friday and Christmas on the horizon, reader may be interested in the Top 5 tips for maximizing miles on your holiday shopping by Patrick Sojka at Rewards Canada. He suggests double or triple dipping to rack up your points faster. This basically involves your mileage earning credit card being used for a purchase where you also earn miles in the same program as the credit card. For example, pay for your Air Canada flight with a TD Aeroplan Visa or American express.

When you use travel rewards, at some point you may be juggling way more credit cards than the average consumer. Even with a really good system to ensure that you have paid your cards in full each month, at some point something may slip through the cracks. On Frugal Travel Guy, Caroline Lupini explains How to Get Credit Card Late Fees Refunded and Interest Charges Reversed at least once, but it is important not to make a habit of missing payments.

In a guest post on the Canadian Finance Blog, How to Get the Best Value from Air Miles Rewards, Retire Happy blogger Jim Yih explains how he exchanged 15,850 Air Miles for six flights from Edmonton to Ottawa that saved him $2475.99. He calculates that he is getting about one Air Mile for every dollar spent and his equivalent cash back is about 1.67% over the longer time frame. He also endorses double-dipping and believes that with a little more conscious effort and awareness he can get the reward up to a 2% cash back equivalent.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

SNOWBIRDS SERIES
By Sheryl Smolkin

When people who are retiring are asked what they plan to do after work they frequently say they’re going to travel more. And many elect to become snowbirds who escape to destinations with warmer climates for several months a year. However, for older Canadians traveling outside the country, getting the right travel insurance coverage at an affordable price is a key concern before they set off on their journey.

Therefore, to kick off Saskatchewan Pension Plan’s Snowbird Series for November, I’m interviewing Martin Firestone, President of Travel Secure, a company that specializes in travel insurance. Since he opened the company in 2003 he has become well-known for his expertise, and he has frequently been quoted in the media.

Thanks for joining me today Martin.

Q: Martin, travel insurance can be broken down into several components. Can you tell me what they are?
A: Sure. The first would be “Emergency Out-of-Country Medical.” The second coverage is “Trip Cancellation and Interruption” insurance that is typically part of a deluxe package that includes lost baggage, missed flights and default of supplier protection.

Q: Why is it so important for snowbirds who are going to be out of the country for a month or more to obtain the right kind of coverage?
A: I don’t even think it’s a month or more. I think one hour out of our province is where the problems begin in this game. It’s important because quite frankly you’re not covered if you have a medical emergency once you’re out of your province.

Q: What do you think are some of the biggest misconceptions about travel insurance or the need for travel insurance?
A: I think the biggest one is that your government health insurance program covers you while you’re traveling. Nothing could be farther from the truth. If there is any coverage at all, we are looking at a fraction of the cost. People also think that if they don’t feel well, they will hop on a plane and come home. But lots of people we deal with can’t get on a plane. They’re not stable enough to be flown 30,000 feet in the air. And the final one is really, people think that they’re immortal and they won’t get sick.

Q: Many people have travel insurance through their credit cards. What are the pros and cons of credit card coverage?
A: The biggest problem with credit card coverage is there is no underwriting at time of application, because there is no application. You have a credit card. It has a travel insurance element, but it’s very difficult to understand what the fine print means. In that scenario you have a claim, and then you apply for payment. That’s when the true underwriting happens, and when you may find out that in fact you do not actually have coverage.

Q: The other issue, of course, with credit card insurance, particularly for snowbirds is – as I understand it – there are caps on the length of time you can be away.
A: Absolutely. So when you turn 50, then maybe it’s only covering you for up to 15 days at any one time. Then you turn 65, it reduces to six days. And then ultimately, at certain ages it just reduces to zero days.

Q: Now, some people have annual travel policies that would cover them for everything from a one day jaunt to more lengthy trips without having to think about getting insurance every single time. What do travelers need to know about these policies?
A: If you purchase an annual travel insurance policy, it basically states that you can travel up to a specified number of days as many times as you want during the year. It is an excellent product with one small problem. If there is a change in your health during the given year, you cannot make an assumption that the annual policy is going to be adequate. In fact, it could be worthless depending on the stability period. So if you have an annual policy, you always have to check in with the broker or the insurer and explain when you have a change in stability.

Q: What does stability mean?
A: Stability is simply what an insurer needs to know about how long it has been since you’ve had a change in medication. A change in medication can be an increase, a decrease, even being taken totally off a drug. And a change in the insurance world is a risk. So insurance stability periods can range anywhere from seven days to 90 days to 180 days or even one year. This simply means that if you have had a change in the last year and the stability period in the policy is 365 days, you will not be covered for that particular condition.

Q: Now, again, some snowbirds have group travel insurance as part of their retiree benefits or membership in an alumni group. Are there similar potential problems with these policies?
A: Very much so. The biggest thing you have to worry about with group, alumni, retirement, or ongoing employer-sponsored group plans is the length of the stability period. And the major problem we’re finding now with group benefits is determining whether or not the client really eligible. If the policy says you have to be at work for at least 25 hours/week for 50 weeks, how could you possibly spend six months down in Florida and still be an eligible employee?

Q: But what about people who retire and are still covered by the group policy?
A: Very good question. There are large companies that do have post-retirement coverage. It’s very important to check with your HR department or the people who are administering the plan to confirm what the stability period is, how many days you can be out of the country, and confirm other aspect of your coverage.

Q: There are several online companies or online groups that allow potential purchasers to compare prices and features and then purchase a policy. What do they need to watch out for? What would your concern be about that method of purchasing travel insurance?
A:It’s one thing to see what various competitors are charging and what their policies cover, but there’s still the problem that you may not understand the questions you answered. So without a third party, a live person to question whether you have high-blood pressure, you run the risk that what you actually requested or what the search engine spits out is still not a policy that’s going to cover you.

Q: And what about travel insurance sold by travel agencies? How does their product differ from policies offered by an online purchaser or broker?
A: Travel agents are not licensed the way an insurance agent is to sell travel insurance. That doesn’t mean they don’t know what they’re selling. It’s just that they typically sell only one product. You may get some coverage, but again the fine print may indicate that it does not cover you for certain conditions. So it’s not even an issue of stability periods. If you take medication for something, that condition may not be covered.

Q: So what value do you think a broker can add to the whole process?
A: Well, on top of being licensed and having studied to learn about travel insurance, they can offer policies from several different companies. And I guess the other part is, they’re available at claim time, which at the end of the day, is probably the strongest asset of anyone selling travel insurance. They don’t get lost after the sale. They’re there to help you when there’s a claim.

Q: How much coverage is enough?
A: $1 million is more than enough. I personally have never seen a claim that exceeded $1 million. I think any of the other policies with $2 million or $5 million coverage out there are just sizzle.

Q: So regardless of how or where snowbirds purchase travel insurance, what kind of questions should they be asking?
A: The most important thing they should be asking is “What is the stability period?” They should also be asking if they have to go to a specific network of hospitals or whether if they get ill, they can just go anywhere they want. Having to go to a network where an insurer has a special pricing arrangement does help the premiums and ultimately the cost of the whole adventure. But you got to know what you’re buying.

Q: What kind of activities may be excluded by a policy?
A: Typically high-risk activities. We’re talking about downhill skiing, scuba diving — things like that. If the policy is sold properly, and there is an exclusion explained prior to the sale of a policy, then that’s fine.

Q: Now, you talked about underwriting at the time of purchase and underwriting at the time of claim. Could you clarify that for me a bit more?
A: With some credit cards and various forms of group coverage, you get travel insurance automatically. Not once do they ask you about your medical conditions, how many meds you take, your stability or anything else. So there’s no way that they could make an assessment of you, until claim time when the doctor’s reports are ordered and a phone call is made asking you about your health and your conditions. Of course, if A doesn’t line up with B, that’s when you get a letter that your claim has been denied.

Q: How typical is it for a carrier to deny coverage if a medical question was improperly answered, even if the subsequent medical condition is totally unrelated?
A: That one is a thorn in many people’s side but it is a fact of life. You answered a question wrong with respect to whether you use a puffer or you don’t. You are on vacation, you have a perforated stomach and the bill comes to $300,000. You’ll get a letter the next week saying that unfortunately, you didn’t answer the puffer question right, so the insurance company is denying your claim for a perforated stomach. This is one of the most talked about, most frustrating realities that gives the industry a bad name.

Q: Are some snowbirds simply uninsurable?
A: I would say that at minimum, the best insurance policy out there requires that the individual be stable for at least seven days. They also can’t be traveling against the advice of their physician.

Q: So if somebody has a cancer or something of that nature, could they be covered if they’ve been stable, let’s say for the seven days?
A: Yes, as long as the policy states that seven days prior to departure there were no tests, investigations or medication changes, then you would be covered up to the policy amount.

Q: I see. But might there be specific conditions excluded?
A: There shouldn’t be. If you can honestly say that, I, for the last seven days before going away, have not had any issues, then you should be fully covered for all pre-existing conditions.

Q: But that would be a policy you could typically get only from a broker?
A: Absolutely. There are only certain proprietary products out there that have a clause, which is called “the guaranteed stability rider.” That rider is not cheap, but it gives you the peace of mind that when you’re away you’ll be covered for all issues that you may have.

Q: Thank you very much Martin. Talking with you today has been very informative.
A: My pleasure.

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This is an edited transcript of an interview conducted in September 2015.