Travel insurance and pregnancy

When you’re pregnant, travel insurance can provide essential coverage, but it’s important to understand how it works. Many standard travel insurance policies offer coverage for pregnancy-related issues, but there are often specific conditions and limitations.

Firstly, most insurers treat pregnancy as a normal medical condition, not an illness. This means coverage is usually provided up to a certain point in your pregnancy, typically around 26 to 32 weeks. Beyond this period, coverage might be limited or excluded altogether.

Additionally, travel insurance generally covers unexpected complications of pregnancy, such as preterm labor or medical emergencies, rather than routine check-ups or planned procedures. You’ll need to check the policy details to see what’s included and what’s not.

Another key point is the need for a doctor’s note. Insurers may require a medical certificate stating that you are fit to travel, especially if you are in the later stages of pregnancy.

Lastly, some policies might offer coverage for cancellation or curtailment of your trip due to pregnancy-related issues. This can be particularly useful if your doctor advises against travel after you’ve already booked your trip.

Understanding these aspects of travel insurance when pregnant helps you make informed decisions and travel with greater peace of mind.

Should you get travel insurance if you’re pregnant? 

If you’re pregnant and planning to travel, especially abroad, getting travel insurance is highly recommended. It’s particularly important if you are traveling to a country with high medical costs or where medical assistance might be necessary. 

Purchase travel insurance as soon as you book your trip to cover any unforeseen circumstances that might arise before or during your travels, providing peace of mind for you and your family.

Advantages of travel insurance when pregnant

Travel insurance offers several benefits for pregnant travelers. It typically covers unexpected medical complications, which can be costly when you’re away from home. 

Policies often include emergency medical expenses, hospital stays, and even medical evacuation if needed. Additionally, travel insurance can cover trip cancellation or interruption if your doctor advises against travel due to pregnancy-related issues. 

This financial protection can save you significant expenses and stress, allowing you to focus on enjoying your journey and staying healthy during your travels.

Insurance coverage options for pregnant travelers

There is more than one type of insurance coverage for pregnant travelers. It doesn’t matter if you’re taking a summer vacation to Hawaii or a business trip to China, you should consider all of the below options. 

Trip cancellation

Trip cancellation coverage reimburses you for prepaid, non-refundable expenses if you need to cancel your trip for a covered reason. For pregnant travelers, this is particularly important because pregnancy-related complications or sudden changes in health can make travel unsafe.

Example: Imagine you’ve planned a babymoon to Hawaii. A week before departure, your doctor advises against traveling due to a complication. Trip cancellation coverage would reimburse you for the money spent on flights, hotels, and other prepaid expenses, allowing you to prioritize your health without financial loss.

“Cancel for any reason” (CFAR) coverage 

“Cancel for any reason” (CFAR) coverage allows you to cancel your trip for reasons not typically covered by standard trip cancellation policies and still receive partial reimbursement, usually between 50-75% of your trip costs. This coverage is highly flexible and offers peace of mind for pregnant travelers who may face unpredictable changes in their health or personal circumstances.

Example: Suppose you start feeling anxious about traveling as your departure date approaches. With CFAR coverage, you can cancel your trip even if there’s no specific medical reason and still recover a portion of your costs, reducing the stress of losing your investment.

Travel medical insurance

Travel medical insurance covers medical expenses incurred while traveling, which can be especially important for pregnant travelers needing unexpected medical attention. This coverage typically includes doctor visits, hospital stays, and sometimes even childbirth if it occurs during the trip.

Example: While on a business trip to China, you experience severe nausea and need to see a doctor. Travel medical insurance would cover the cost of the medical visit, medications, and any necessary follow-up care, ensuring you receive the medical attention you need without worrying about high out-of-pocket expenses.

Emergency medical evacuation

Emergency medical evacuation coverage pays for transportation to the nearest adequate medical facility if you experience a serious medical emergency while traveling. This can be vital for pregnant travelers, especially in regions where medical facilities may not be equipped to handle pregnancy-related emergencies.

Example: If you develop a severe pregnancy complication while on a remote island vacation, emergency medical evacuation coverage would cover the cost of transporting you to a hospital with the necessary facilities to provide appropriate care, ensuring you get the medical attention you need as quickly as possible.

Trip interruption

Trip interruption coverage reimburses you for the unused portion of your trip and additional transportation costs if your trip is cut short due to a covered reason, such as a medical emergency. This can be particularly useful for pregnant travelers who may need to return home unexpectedly.

Example: While visiting family abroad, you experience early labor signs and need to return home immediately. Trip interruption coverage would reimburse you for the unused portion of your trip and cover the cost of your early return flight, helping to minimize the financial impact of your sudden change in plans.

What is not covered by insurance for pregnant travelers

Insurance for pregnant travelers covers a lot, but there are some things that it does not.

• Missed flights because the airline didn’t allow you to board
• Costs related to childbirth in another country
• Routine prenatal check-ups
• Elective procedures or treatments
• Complications from pre-existing conditions not disclosed to the insurer
• Travel restrictions due to high-risk pregnancies
• Costs associated with bringing a newborn home if the baby is born abroad

Understanding these limitations can help you plan better and avoid unexpected expenses during your travels.

What to consider before getting travel insurance when you’re pregnant

Before purchasing travel insurance when you’re pregnant, there are several important factors to keep in mind:

• Discover if there are any existing coverage options available to you from other providers such as credit cards. Some credit cards offer travel insurance benefits that might already cover certain aspects of your trip.
• Review the policy differences in coverage options from different providers. Compare what each policy offers, especially in terms of pregnancy-related coverage, to ensure you get the best protection for your needs.
• Determine how much of your trip is nonrefundable so you can decide how vital trip cancellation and interruption coverages are. This helps you assess whether you need extensive coverage or if a basic policy will suffice.
• Check if the policy requires a medical certificate from your doctor stating you are fit to travel. Some insurers may need this documentation, especially if you are in the later stages of pregnancy.
• Understand the insurer’s definitions and exclusions for pregnancy-related complications. Make sure you know what is considered a covered complication and what is not to avoid surprises if you need to make a claim.

Considering these factors will help you choose the right travel insurance policy, providing peace of mind and adequate coverage during your pregnancy travels.

MoneyLion can help you unlock exclusive points and promotions every time you travel.

Check out airline regulations for expectant passengers

Reviewing airline guidelines for pregnant travelers is crucial to avoid any surprises or disruptions during your trip. Airlines have specific regulations and requirements for pregnant passengers, which can vary widely. Knowing these rules in advance helps you plan better and ensures a smoother travel experience.

Delta Air Lines

Delta Air Lines allows pregnant passengers to fly without restrictions at all times. Furthermore, Delta does not require a medical certificate — but it is always a good idea to carry one, especially if your pregnancy is high-risk or you have specific medical needs.

Southwest Airlines

Southwest Airlines doesn’t require any special documentation to fly pregnant and recommends avoiding air travel after 38 weeks. 

British Airways

British Airways allows travel up to the end of the 36th week for single pregnancies and up to the end of the 32nd week for multiple pregnancies (twins, triplets, etc.). After 28 weeks, a medical certificate is required, confirming that you are fit to fly and providing your due date. 

Understanding these regulations helps ensure a hassle-free travel experience and prevents last-minute complications at the airport. Always check with your specific airline before booking to confirm their policies, as guidelines can change.

Get travel insurance before flying while pregnant

Travel insurance is needed for pregnant travelers to cover unexpected complications and cancellations. Check airline regulations and compare different insurance policies to find the best coverage. While doing so, consider existing coverage options, nonrefundable trip costs, and necessary medical documentation.

The time and money you spend upfront will be repaid with peace of mind — and financial protection if something goes wrong. 

FAQ

Depending on the airline, between 17% and 30% of flights could be delayed. In 2022, around eight bags in every 1,000, or 26 million pieces of luggage in total were lost, delayed, or damaged. Those are not encouraging numbers. 

Having the right travel insurance can provide peace of mind and financial protection if things go wrong on your trip. Fortunately, many credit cards offer built-in travel insurance as a perk for cardholders, saving you the cost of insurance on your next trip.  

Below, you can explore the best credit cards with travel insurance coverage, including some no-annual fee options. Read on for the best options to protect your dream vacation this year! 

To find out about more travel perks, download the MoneyLion app!

8 Best credit cards offering travel insurance

Here is an overview of the best travel credit cards that include some form of travel insurance to protect you on your next adventure. 

1. Best for Frequent Flyers: Chase Sapphire Reserve Card

The Chase Sapphire Reserve is a premium travel credit card that offers valuable benefits for frequent flyers. In addition to earning 3X points on travel and dining, cardholders enjoy a generous $300 annual travel credit, access to airport lounges, and robust travel insurance coverage.

Annual fee: $550

APR: 19.99%-26.99% variable

Credit score: Excellent 

Pros

• Excellent travel benefits
• Flexible rewards program
• Comprehensive coverage

Cons

• The high annual fee may not be worth it for infrequent travelers

2. Best for No Annual Fee: Wells Fargo Active Cash Card

The Wells Fargo Active Cash Card stands out with premium features and is a straightforward cash-back credit card that offers travel insurance coverage despite having no annual fee. You can earn 2% cashback on everything, one of the most generous flat reward options out there. If you just want a straightforward cashback card with decent insurance and no annual fees, this is the top pick. 

Annual fee: $0

APR: 20.24%, 25.24%, or 29.99% variable

Credit score: Excellent, Good

Pros

• No annual fee
• Simple 2% cashback rewards on all purchases

Cons

• Travel coverage is more limited compared to premium travel cards

3. Best for Lounge Access: Capital One Venture X Rewards Credit Card

The Capital One Venture X Rewards credit card is a premium travel card that offers excellent lounge access benefits, in addition to generous travel insurance coverage. The card also provides a $300 annual travel credit and access to over 1,300 lounges worldwide through a Priority Pass Select membership.

However, there are a few significant limitations to the Venture X card’s travel protections. First,  it only reimburses transportation costs if a trip needs to be canceled for covered reasons. Second, it doesn’t cover all prepaid expenses, like hotels and rental cars, up to the maximum limit of the coverage. Instead, you’ll need to meet a limited list of eligible reasons for trip cancellation and interruption. Also, there’s no baggage delay insurance.

Annual fee: $395

APR: 19.99%, 26.24% or 29.99% variable

Credit score: Excellent

Pros

• Lounge access
• Full auto insurance for theft or collision
• Generous travel credits
• Flexible rewards program

Cons

• Travel coverage is limited compared to other options.
• The high annual fee may not be justified for infrequent travelers.

4. Best for Luxury Perks: The Platinum Card from American Express

The Platinum Card from American Express is a premium travel card that offers a wide range of luxury perks and travel benefits, making it a top choice for frequent travelers seeking an elevated experience. Get up to $200 annual airline fee credit and up to $200 annual hotel credit. You’ll also get complimentary Marriott Bonvoy Gold Elite and Hilton Honors Gold status.

Note that with this AMEX card, for trip delay and trip cancellation or interruption insurance to be valid, your entire round trip must be paid for with the Platinum Card. You could book two one-way flights, a multi-stop, or a single roundtrip. There’s no baggage delay reimbursement or travel accident insurance.

Annual fee: $695

APR: 21.24% to 29.24% variable

Credit score: Good, Excellent

Pros

• Lounge access at over 1,300 airport lounges worldwide through Priority Pass, as well as access to Amex Centurion Lounges
• Full auto insurance for theft or collision

Cons

• High annual fee
• Travel coverage is limited compared to other options

5. Best for International Budget Travelers: United Explorer Card

The United Explorer Card is a co-branded travel credit card that offers valuable benefits for frequent United Airlines flyers, including priority boarding, free checked bags, and travel insurance coverage. It’s an excellent option for budget-conscious international travelers seeking a card with robust travel protections. In addition to insurance and bonus signup miles, you could use miles to book on any of United’s partners potentially opening low-cost travel opportunities. In addition, it offers comparable insurance perks to some of the premium offerings on this list. 

Annual fee: $95 (waived the first year)

APR: 21.99%–28.99% variable

Credit score: Good, Excellent

Pros

• Free checked bags on United flights
• Travel credits
• Comprehensive travel insurance

Cons

• Limited rewards earning potential outside of United purchases

6. Best for Bonus Rewards: Bank of America Premium Rewards Credit Card

The Bank of America Premium Rewards credit card offers a generous rewards program and valuable travel protections, making it an excellent choice for those seeking bonus rewards on their everyday spending. You can earn 2 points per dollar on travel and dining earns. If you’re a Preferred Rewards client, you can get an extra 25%-75% cashback bonus.

Annual fee: $95

APR: 21.24% – 29.24% variable 

Credit score: Good, Excellent 

Pros

• Excellent rewards rate
• Travel credits
• Built-in travel insurance

Cons

• Limited bonus categories compared to some other rewards cards

7. Best for Simple Rewards Cards: Chase Sapphire Preferred Card

The Chase Sapphire Preferred Card is a popular choice for those seeking a straightforward and valuable travel rewards card with built-in travel insurance coverage. With a low annual fee, the Chase Sapphire Preferred card offers versatile and valuable insurance options. You can redeem rewards for travel or transfer to other loyalty programs like United Airlines, Southwest Airlines, Marriott, and Hyatt. 

Annual fee: $95

APR: 19.24% – 26.24% variable

Credit score: Good, Excellent

Pros

• Excellent sign-up bonus
• Flexible rewards program
• Comprehensive travel insurance

Cons

Limited bonus categories for earning rewards

8. Best for Southwest Flyers: Southwest Rapid Rewards Plus 

The Southwest Rapid Rewards Plus credit card is an excellent choice for frequent Southwest Airlines flyers, offering valuable perks and travel insurance coverage. The credit card earns 2X points on Southwest purchases. As a cardholder, you’ll receive 3,000 anniversary bonus points each year and the ability to earn a companion pass after earning 135,000 qualifying points in a calendar year.

Annual fee: $69

APR: 21.49%–28.49% variable

Credit score: Good, Excellent

Pros

• Earn Southwest Rapid Rewards points
• Anniversary bonus points

Cons

• Limited bonus categories for earning rewards outside of Southwest purchases
• No trip delay or interruption coverage. 

Understanding the types of travel insurance coverage

Travel insurance offers a range of coverages designed to protect you from various mishaps and unforeseen circumstances that can occur during your trip. Having the right coverage can provide peace of mind and financial protection, ensuring that your travel plans are not derailed by unexpected events.

It’s important to carefully review the specific coverage details, limits, and exclusions of any travel insurance policy you’re considering to ensure it aligns with your travel needs and provides adequate protection. Here is an overview of the common types of travel protection.

Trip delay

This coverage reimburses you for additional expenses incurred due to a delayed trip, such as meals, accommodations, and transportation. It typically kicks in after a specified delay period, from six to 12 hours or more, depending on your policy.

Trip cancellation

If you need to cancel your trip for a covered reason, such as illness, injury, severe weather, natural disasters or other unexpected events, trip cancellation insurance can reimburse you for non-refundable, prepaid expenses like flights, hotels, and tours. Note that trip cancellation insurance doesn’t cover voluntary cancellations. 

Trip interruption

Similar to trip cancellation, this coverage provides reimbursement if you need to cut your trip short due to covered reasons. It can cover the unused, non-refundable portion of your trip, as well as additional transportation costs to return home.

Baggage delay

When your checked baggage is delayed for a certain period, typically 6 hours or more, this coverage can provide reimbursement for essential purchases like clothing, toiletries, and other necessary items to tide you over until your luggage arrives. Good baggage delay coverage gives you $100 for up to five days.

Lost luggage

If your checked baggage is lost or damaged during the trip, this coverage can reimburse you for the cost of replacing lost or damaged items, up to a specified limit.

Travel accident

This coverage provides financial protection in the event of accidental death or dismemberment while traveling. It can provide a lump sum payment to you or your beneficiaries in case of such unfortunate incidents.

Rental car insurance

Many travel insurance policies include coverage for rental cars, providing primary or secondary coverage for collision damage or theft. This can save you money by eliminating the need to purchase additional insurance from rental car companies.

Emergency evacuation and transportation

In the event of a medical emergency, while traveling, this coverage can provide reimbursement for the costs associated with medical transportation and evacuation to the nearest appropriate medical facility or back to your home country.

Do you need additional travel insurance?

While credit card travel insurance can provide valuable coverage, it may not be sufficient for all situations. Consider purchasing additional travel insurance in cases of extended trips or additional medical needs, such as:

• Extended trips or international travel: Credit card coverage may have limits on the length of trips or exclude certain destinations, so you may need additional insurance for longer or more complex trips.
• High-risk activities: If you plan to participate in adventure sports or other high-risk activities, you will probably need specialized coverage not provided by credit card insurance.
• Pre-existing medical conditions: Credit card insurance often excludes coverage for pre-existing medical conditions, so separate travel medical insurance can be necessary to protect your health when traveling beyond your primary health insurance coverage. 

Final tips for securing travel insurance

Unforeseen events can quickly turn a dream vacation into a nightmare, but having the right travel insurance can provide invaluable financial protection and peace of mind. Many credit cards offer built-in travel insurance as a perk, making it easier to safeguard your trip without additional costs. 

Carefully research the various types of coverage and select the best credit card for your travel needs. For example, while premium travel cards offer impressive rewards, they’re rarely worth the cost for infrequent travelers. However, with some research and comparison, we’re confident there’s a card option for most travelers on this list. 

Compare offers and prepare to embark on your adventures with confidence. You can learn about overseas coverage or the types of credit cards. You can also learn to build a rainy day fund. Need to know how much you need to save for your dream vacation? Check out MoneyLion’s savings calculator. 

FAQ 

It’s no secret that even seasoned travelers sometimes find themselves wondering, “Do I need travel insurance?”

The right coverage can indeed provide invaluable peace of mind and protection against mishaps that could derail your long-awaited getaway. We’re breaking down this great debate among travelers everywhere once and for all.

And if you’re looking for added travel protections¹ coupled with a financial membership that allows you to do more – get in the know with MoneyLion!

What is travel insurance?

Travel insurance is a type of insurance policy designed to protect travelers against the various risks and financial losses associated with travel. It provides coverage for a range of potential issues, like trip cancellations, medical emergencies, lost or delayed baggage, and other travel-related incidents.

Specific coverage policies have different coverage. However, at its core, travel insurance aims to safeguard travelers against losses related to trip cancellations, interruptions, delays, medical emergencies, lost or delayed baggage, and other travel-related incidents. 

Depending on the specific policy, coverage may include reimbursement for non-refundable expenses, medical expenses, emergency evacuation, and even accidental death or dismemberment. Some policies also offer protection for rental car damages, missed connections, and baggage delays or loss.

Travel insurance policies can be customized to suit individual needs and travel plans. Most insurers let you choose various coverage options and levels to tailor the protection to your specific trip details, activities, and personal risk tolerance. Purchasing travel insurance can give you greater peace of mind, create a safety net to protect your investment, and mitigate potential financial losses.

What does travel insurance cover?

By understanding the various types of coverage offered by travel insurance, you can better evaluate your specific needs and choose a policy that provides the protection you require for a worry-free and financially secure travel experience. Travel insurance policies can vary in their coverage but typically include protection including:

Trip cancellations, interruptions, or delays

One of the primary benefits of travel insurance is coverage for trip cancellations, interruptions, or delays. This protection can reimburse you for non-refundable expenses, such as flights, hotel reservations, and tour costs if you need to cancel or cut your trip short due to covered reasons. 

These reasons may include unexpected illness or injury to you or a family member, severe weather conditions, natural disasters, or other circumstances beyond your control. With this coverage, you could save significant money if you’re forced to cancel or interrupt your trip.

Baggage and personal belongings

Travel insurance can also cover lost, damaged, or delayed baggage and personal belongings. Suppose the airline or other transportation provider loses or damages your luggage. In that case, this coverage can help you recover the cost of replacing essential items or reimburse you for the value of the lost or damaged items. 

Similarly, if your baggage is delayed, the policy may cover the cost of purchasing necessary items, such as clothing or toiletries, until your luggage arrives. While airlines also offer some reimbursement, it may not cover the full reimbursement value, making travel insurance a valuable asset in case of frustrating delays. 

Missed connections

Travel plans can be disrupted by missed connections due to delays or cancellations of flights or other transportation. Travel insurance can cover the additional expenses incurred when you miss a connection, such as rebooking fees, accommodations, and meals, while you wait to catch up with your itinerary. This coverage can be particularly valuable if you have a complex itinerary or are traveling to remote destinations with limited transportation options. 

For example, if you are going on an African safari with a flight to the camp every three days, missed connection coverage could be especially valuable. But even if you’re just traveling to Minneapolis, the missed connection coverage could save the day when you’ve got limited vacation time. 

Medical and emergency evacuation

One of the most crucial aspects of travel insurance is coverage for medical emergencies and emergency evacuations. If you become ill or injured during your trip, travel insurance can help cover the costs of medical treatment, hospitalization, and even emergency medical transportation or evacuation to a suitable medical facility. Without this coverage, unexpected medical expenses while traveling abroad can quickly become financially devastating. 

This is one of the most essential roles of travel insurance, but coverage can vary widely. Carefully compare total coverage amounts for medical cover and emergency evacuation based on your travel plans and individual risks. 

Accidental death or dismemberment

Some travel insurance policies include coverage for accidental death or dismemberment that occurs during your travel. This type of coverage provides financial protection for your beneficiaries in the event of a tragic accident while on your trip.

Rental car damage or loss

If your travel plans involve renting a car, travel insurance can protect against damages or theft of the rental vehicle. This coverage can help you avoid the high costs associated with the rental company’s insurance or the need to pay out-of-pocket for repairs or replacements. Some credit cards, such as travel credit cards, also cover rental car damage. 

When do you need travel insurance?

While travel insurance is not mandatory for every trip, it can give you significant additional protections. Here are a few examples of situations when travel insurance is highly recommended.

The once-in-a-lifetime trip

When you’ve saved up for that dream vacation, whether it’s an around-the-world cruise, an African safari, or trekking to Machu Picchu—you’re making a major investment. Travel insurance protects that investment against cancellations or interruptions due to covered reasons like illness, injury, or other unforeseen events. With potentially tens of thousands of dollars at stake, insurance gives you peace of mind that your trip investment is protected if the unexpected occurs before or during your travels.

A group trip

The more people traveling in your group, the higher the chances of something going wrong that could impact your plans and costs. Also, the greater the possibility for loss. 

Having travel insurance when traveling with a multi-generational family group, friends, or on a group tour provides valuable coverage. It protects against cancellations if someone gets sick before departure. It covers additional accommodation and transportation costs if someone gets ill or injured during the trip. It also provides emergency medical and evacuation protection for the whole group.

An adventure vacation

Activities like hiking, climbing, skiing, or other adventure sports increase your risk of injuries requiring emergency medical treatment and evacuation. Standard health insurance often doesn’t cover these activities because of that increased risk. 

Travel insurance with adventure sports coverage ensures you can get emergency care and transportation to adequate medical facilities if needed. It also covers cancellations or interruptions if you can’t participate due to a covered injury.

When you have a medical risk

Those with existing health conditions face higher risks of requiring medical care while traveling. Most travel medical insurance has exclusions for pre-existing conditions unless you purchase the policy shortly after making your initial trip deposit. Doing so allows you to receive coverage for the acute onset of those pre-existing conditions during your travels, a valuable and necessary benefit.

For high-risk destinations

Remote locations, areas with civil unrest, or destinations with substandard medical facilities increase the chances of requiring emergency medical evacuation for sufficient care. Travel insurance policies with higher emergency evacuation coverage limits are essential for these higher-risk trips. They cover the significant transportation costs of getting you to the nearest appropriate hospital.

When is travel insurance not necessary?

There are situations where travel insurance may not be necessary, such as:

Local trips

You may not need travel insurance if you’re taking a short trip within your home country or state, with minimal prepaid expenses. For example, a weekend road trip or a staycation in a nearby city likely doesn’t warrant the extra cost of travel insurance. However, it’s still a good idea to review your existing health insurance policy to ensure you’re covered for any medical emergencies that may come up during your trip.

Staying with family or friends

When you’re visiting family or friends and staying with them, the need for travel insurance may be reduced. Since you’re not paying for accommodation, a significant portion of your travel costs is already covered. Additionally, if you need to cancel or interrupt your trip, you may not face the same financial losses as someone who has pre-paid for hotels or resorts. However, double-check medical insurance and emergency evacuation coverage before traveling. 

You’re already covered

If you have a comprehensive health insurance policy that provides adequate coverage for medical emergencies while traveling abroad, you may not need additional travel medical insurance. However, reviewing your policy’s coverage details carefully is essential, as some health insurance plans may have limitations or exclusions when traveling internationally.

Low-cost trips

For inexpensive trips with minimal prepaid expenses, the cost of travel insurance may outweigh the potential financial risk. If you’re comfortable absorbing the costs of a canceled or interrupted trip or the financial loss is relatively small, you may decide to forgo travel insurance. You’ll still need to double-check medical insurance coverage. 

You’re staying within your network

Travel insurance may not be necessary if you’re traveling within your home country or a region where your insurance policies (health, auto, etc.) provide sufficient coverage. However, it’s crucial to carefully review the terms and conditions of your existing policies to ensure that you’re adequately covered for any potential risks or incidents that may occur during your trip, as some policies only cover you within the same state. 

How much travel insurance do you need? 

The travel insurance coverage you need depends on the cost of your trip, the destinations, your activities, and your personal risk tolerance. As a general guideline, purchasing a policy that covers at least the total cost of your non-refundable, prepaid expenses, such as flights, accommodations, tours, and activities, is a good idea. By planning ahead, you can recover those upfront costs if you need to cancel or interrupt your trip for a covered reason.

Regarding medical and emergency evacuation coverage, experts recommend purchasing a policy with at least $100,000 in medical coverage and $300,000 for emergency evacuation if you’re traveling internationally or to remote destinations. The best travel insurance provides up to $1 million per person for medical evacuation, which may seem like a lot but could be necessary for evacuation from international locations. 

Consider even higher coverage limits if you’re participating in adventurous activities or have pre-existing medical conditions to ensure that you’re adequately protected. You can also factor in any additional coverages you might need, such as protection for lost or delayed baggage, rental car coverage, or accidental death and dismemberment benefits. 

Protecting your journey: The importance of travel insurance

As you plan your next adventure, pay attention to the value of travel insurance. While it may seem like an additional expense, the right coverage can provide invaluable peace of mind and protection against the unexpected. From trip cancellations and medical emergencies to lost baggage and rental car damages, travel insurance can help ensure that unforeseen circumstances don’t derail your hard-earned vacation. Tailor your coverage to your specific needs, and embark on your journey with the confidence that you’re prepared for whatever comes your way.

While planning for travel, an emergency fund can also give you extra peace of mind. You can use this savings calculator to see how much you want for your rainy day fund or save for your next vacation.

FAQ 

MoneyLion can help you explore a wide variety of credit card options tailored to different needs and preferences.

How paying for insurance with a credit card works

Most insurance companies have payment policies that determine how and if you can make payments using your credit card. It’s best to review your insurer’s website or talk with a representative to see how you can make insurance payments with a credit card.

Most insurance companies make the process straightforward. You can select the payment method for your insurance policy and opt to use a credit card. Policyholders can use their credit cards for various policies, like car insurance, health insurance, and other insurance products.

E-commerce and the rise of insurance apps have made credit card payments more common. Most insurers will let you pay for your policy with a credit card. You can use a credit card to make payments for any type of policy, but some insurance companies may not allow credit cards as a payment option.

Benefits of paying insurance with a credit card

Are you considering credit card payments for your insurance policy? Credit cards present policyholders with several benefits.

1. Take advantage of cashback and points

Most credit cards have reward programs that give you points or cashback on every purchase. You can accumulate points and get some money back from every premium payment. Since you planned to spend money on your insurance policy anyway, you might as well get some rewards for it.

2. Flexibility 

You don’t have to repay credit card debt right away. You can gradually repay it leading up to the bill’s due date. Credit cardholders can get into serious debt if they only make the minimum payment, but getting your balance back to $0 before the end of each month will protect you from high interest rates. 

This protection lets you benefit more from the flexibility of credit card payments. You don’t have to worry if your bank account doesn’t have enough funds to support your debit card payment.

3. Build credit

Credit cards allow you to help improve your credit score if you make on-time payments. Payment history makes up 35% of your credit score, and each insurance payment could give you a few points. Those extra points can help you qualify for higher loan amounts and lower interest rates. 

Even if you don’t plan to borrow money, building credit is still important. Most landlords will look at your credit report when you submit your tenant application.

Considering a way to build your credit? Join MoneyLion WOW membership and apply for up to a $1,000 Credit Builder Loan with a competitive rate and no hard credit check*.

4. Potential for discounts

Insurance companies want to ensure policyholders make on-time payments. They want predictability and may offer a discount if you set up automatic payments with your credit card. Discounts vary for each insurance provider.

Disadvantages of paying insurance with a credit card

While your credit card can cover insurance payments and provide numerous benefits, you should know the risks before getting started. Here are some reasons to be wary of paying insurance with a credit card.

1. Interest charges

Credit cards have high interest rates, and they are also variable rates. Those rates can go up if the Fed raises interest rates or if you miss payments. Your credit card balance will increase significantly if you wait to pay it off.

2. Potential for racking up debt

It’s easy to spend with a credit card. Debt can rack up quickly before you think about how you’ll pay it off. The high-interest rate will cause the debt to snowball, and it can put you in a challenging situation. When repaying your credit card, do not stop at the minimum payment. Although this practice will protect you from late fees, your debt will grow silently.

3. Credit score implications

Racking up too much credit card debt will hurt your ability to make on-time payments. Each late or missed payment will hurt your credit score. A lower credit score translates into higher rates, an uphill battle to get any loan, and other obstacles. Conversely, you’ll be rewarded for on-time payments. If you pay insurance with your credit card and repay the debt before it’s due, your credit score will increase.

Alternatives to paying insurance with a credit card

You don’t have to use a credit card to pay for insurance. You can explore these alternatives to make insurance payments. 

1. Checking account or savings account

Insurance companies let you automate premium payments through your checking or savings account. You won’t have to worry about missing a payment and losing out on the policy. However, make sure you have enough funds in your account to make the monthly payments so you avoid overdraft fees.

MoneyLion offers a convenient marketplace to compare high-yield savings accounts from our trusted partners that could help grow your money.

2. Debit cards

A debit card connects to your bank account and is a viable alternative to paying insurance. You won’t accumulate debt like you can with a credit card, but you need enough funds in your bank account to cover the transaction.

3. Online payments

You can set up online payments with your insurance company. You can make these payments automatic and link a funding source. 

4. Call your insurance provider

Insurance companies give their policyholders various payment options. You may have additional options, such as writing and mailing a check. Policyholders can call their insurance providers to discover their options.

5. Government assistance

The government helps with some insurance payments, depending on your income. If you are in a lower income bracket, you may be eligible for government assistance for your health insurance policy. The government features additional programs that can help you save money in other areas. Getting all of the help you qualify for can make insurance premiums more manageable.  

Should I be paying for insurance with a credit card?

Paying for insurance with a credit card can help you build credit and let you access additional rewards like points or cashback. However, leaning on your credit card for insurance premiums can backfire if you let the balance accumulate. Credit cards have high interest rates that make it difficult to climb out of debt. Credit card holders who can pay off their balances by the end of the month are in the best position to use their cards for insurance premiums.

Need help with insurance? Your credit card can get the job done

Credit cards make it easier to buy goods and services, including insurance policies. You can make credit card payments towards your policy so it’s available when you or your loved ones need it the most. You should talk with your insurance provider to discover your options and how to set up an automatic plan.

FAQ

What is home insurance? What does home insurance cover? How does home insurance work? All good questions. Home insurance is more than just a boring home ownership requirement. It’s a wise investment for any homeowner. It helps protect your home — and your stuff — from all kinds of undesirable situations. Here are nine things you need to know.

1. Home Insurance Covers Property Damage There are all types of home insurance, but one of the main benefits is that — depending on the amount of coverage — it may help with  the cost of fixing or rebuilding your home if something unfortunate happens. Picture a fire, a storm, a break-in, or someone driving a hotdog-shaped car through your window, you get it.
   
2. It Covers Personal PropertyAnother benefit of home insurance is that — depending on the amount of coverage — it may help pay for replacing or repairing the stuff inside your home, like your furniture, clothes, laptop, crystal turtle figurine collection, you name it. If something gets stolen or damaged, your home insurance will cover it.
   
3. It Could Even Cover Personal Injury Claims Some home insurance covers personal injury claims by providing accident liability coverage for the property owner. If you find yourself in this kind of sticky situation, it would be wise to have home insurance.
   
   
4. …And Medical Bills Home insurance could also pay for the medical expenses of guests injured on your property. For instance, if a drunk old man visitor falls down your stairs and files a claim. Your home insurance will also cover the medical bills on top of any fees.
   
5. Living ExpensesHome insurance may also cover the extra costs you incur if you can’t live in your home while it’s being fixed or rebuilt. That includes hotel stays and meals. Not too shabby.
   
6. Home Insurance is Affordable, ReallyAverage homeowners insurance is less expensive than you might think. The National Association of Insurance Commissioners (NAIC) reports that the average cost of home insurance is $1,312 per year or $109 per month in 2020. Your average home insurance cost, of course, will depend on things like where you live, how much coverage you want, how much deductible you choose, and what discounts you get.
   
7. Just For YouHome insurance is not a one-size-fits-all product. You can make your home insurance policy fit your needs and budget by choosing the coverages that suit you best. You can even get more coverage for valuable items like jewelry or tech.
   
8. What is Hazard Insurance?It’s pretty important, given that it covers the actual structure of your home from, well, hazards. You can get protection against specific risks like floods, earthquakes, you name it.
   
9. It’s EasyHow to shop for home insurance? That is the question. It’s easier than ever, thanks to online tools and resources that help you compare rates and coverages from different providers. Once you have a home insurance policy in place, you can easily manage it online or through an app.
   

Protect yourself and your belongings without breaking the bank. Get renters insurance from our trusted partners at Lemonade starting at just $5 a month.

At the end of the day…

Home insurance is a vital service for homeowners of all kinds. It protects you and your family from various risks and gives you peace of mind. 

If you’re asking yourself, “How much home insurance do I need?” Trust that there are affordable options out there to suit your needs. MoneyLion is here to help.

Delivering a new bundle of joy into the world is an exciting and joyful experience, but the costs of having a baby can also come with an unexpected financial burden. While insurance may cover a portion of the costs, there may be other expenses you’re unaware of and need to stay prepared for.

1. Give Your Coverage a Once Over The cost of having a baby in a hospital can vary depending on factors such as location, the type of delivery, and your insurance coverage. While most insurance plans will cover a portion of the hospital stay, it’s crucial to review your policy to understand the specific details, such as deductibles and any out-of-pocket expenses you might expect.
   
2. Know the Prenatal Price TagPrenatal care is an important part of a pregnancy, and most insurance plans cover regular check-ups, screenings, ultrasounds, and routine blood tests. However, it’s important to be aware of any co-pays, deductibles, or co-insurance you may be responsible for during each prenatal visit.
   
3. Compare Costs and Negotiate Before settling on a healthcare provider, research and compare the costs of different options. Reach out to multiple hospitals or birthing centers to inquire about their prices for delivery and postpartum care. You may be surprised by the cost discrepancies. Additionally, don’t hesitate to negotiate with hospitals and providers to potentially lower your expenses. It’s worth a try!
   
4. Supercharge Your Baby Savings A high yield savings account can be a game-changer when it comes to preparing for the costs of having a baby. This is a great way to help maximize your returns since high-yield savings accounts can pay 10 to 12 times the national average compared to traditional savings accounts. MoneyLion offers a convenient marketplace to compare high-yield savings accounts that could help grow your money.
   
5. It’s All In the DeliveryThe method of delivery can significantly impact the cost of having a baby. Cesarean sections (C-sections) tend to be more expensive due to the additional surgical and recovery expenses associated with the latter. While insurance plans typically cover both types of deliveries, it’s important to confirm coverage for C-sections and understand any potential cost differences.
   
6. Anesthesia and Pain Management If you opt for pain management techniques during labor, such as epidurals or other forms of anesthesia, it’s essential to inquire about their coverage under your insurance plan. While many plans cover these services, some may require additional out-of-pocket expenses. Familiarize yourself with your policy’s terms to ensure you have a clear understanding of what’s included.
   
7. Get Extra Funds If Needed All the unexpected expenses and costs for having a new bundle of joy can add up pretty quickly. You may want to consider taking out a personal loan. MoneyLion can partners can provide loan offers up to $50,000 when you need it.
   
8. Neonatal Care In some cases, newborns may require specialized care, such as incubation, intensive care, or specialized treatments. It’s important to verify whether your insurance covers neonatal care for your baby, as these costs can add up quickly. Understand any potential limits, deductibles, or separate co-pays associated with your baby’s care to avoid any surprises.
   
9. Know Your After Care OptionsPostpartum care is crucial for both the mother’s and baby’s well-being after delivery. This includes follow-up visits, lactation support, and screenings for any potential complications. While insurance plans typically cover these services, it’s important to confirm the specifics with your provider and be aware of any associated costs.
   
10. Stay In Network
    
    It’s worth noting that using out-of-network healthcare providers may result in additional expenses. It’s important to understand the extent of your insurance plan’s network and consider staying within that network to minimize unexpected costs. However, if the care you require is not available in-network, reach out to your insurance provider to understand the coverage options available.
    

While health insurance can be a valuable resource during pregnancy and childbirth, it’s important to understand what your plan covers and what expenses you may still be responsible for. It’s never too early or too late to start saving for your baby and MoneyLion is here to help you along the way.

What is a medical loan?

A medical loan is a personal loan offered to those who qualify and need assistance paying for medical-related expenses such as medical bills, medical procedures, and medical reconciliation charges. These costs are usually not covered by health insurance. 

Taking out a medical loan can help you better manage the high costs of medical care. By scheduling your loan repayments as part of a payment plan, you can pay for medical procedures over time instead of all at once.

What happens if you cannot pay your medical bills?

In cases where a bill is unpaid, the medical practice will take action to recoup their money. When that does not work, they may sell the unpaid medical bills to a collections agency.

You are given a six-month grace period before the debt appears on your credit report. Once it impacts your credit score, the debt will remain on your report to be there for seven years from the date of delinquency. This isn’t an ideal situation as medical loan debt can seriously harm your credit score.

However, many algorithms attach less significance to medical collections than other forms of debt. Also, the grace period gives you six months to explore other means of repaying your loan. 

How long does medical bill debt stay on your credit report?

When a medical practice sells your loan to a collections agency, it will reflect on your credit score, but only after at least six months have passed. Once the debt is reflected on your credit score, it will remain there until you repay the loan or after seven years have elapsed—whichever comes first. 

So, this means that if you settle the bills before seven years pass by, you can heal the damage that medical loan debt causes to your credit report. After the debt is paid off, any evidence of your debt will be erased from your credit report. 

However, your payments on the loan will remain a visible part of your payment history. If you don’t pay the loan within seven years, then the debt will continue to reflect on your credit report in a negative way. 

7 ways to pay for your medical bills

There are many ways to pay your medical debt without causing damage to your credit standing. Here are 7 different payment options for repaying medical loan debt! 

1. Payment plan

To their credit, many medical practices and facilities offer payment options to their clients. Also, they are very likely to offer payment plan options when they detect financial distress. A payment plan is the smartest way to repay your medical loans and avoid having to deal with collections. 

Depending on what you can afford, it’s possible to tweak the payment plan values to reflect your current situation. You can also choose to divide your debt into equal payments that you repay over some time. The minimum repayment limit will heavily depend on the total amount that you owe and the terms of your medical loan.

Make sure you know if there are any extra costs that could be added to your loan total over time, like a high interest rate. If you come across additional billing charges or any other fees that you don’t recognize, ask for clarification from your lender.

2. Medical bill forgiveness letter 

In cases where your medical expenses have become impossible to pay, the debtor can apply for medical forgiveness. You will have to provide proof of your inability to pay the debt before you can receive debt reduction or total termination of your debt.

Before sending a letter requesting medical bill forgiveness, you should take action to verify your debt. Make sure the amount you’re claiming is correct. Take a look at your payment history to ensure that you have paid what you’re claiming. 

Next, ask the medical facility that you owe money to if they are willing to work out a payment plan. By being respectful and honest, you will be able to write a compelling medical forgiveness letter that contains proof of your transactions to-date.

To write a proper medical debt forgiveness letter, apply the following tips!

• The letter should be as short and straight to the point as possible.
• Include financial information like your sources of income and your monthly payment amount. 
• Remain courteous and polite all throughout the letter.
• Provide information about your financial hardships that are preventing you from repaying the loan.
• Propose a definite settlement offer.

If the medical practice agrees to the settlement that you propose, you will need to obtain a document proving their acceptance with your settlement offer. In a case where your debt was reduced instead of terminated, the document must state the new payment sum agreed upon by both parties.

3. Credit builder loan

Credit builder loans are another effective way to cover your medical debt. There are a ton of credit builder loans out there, but the MoneyLion Credit Builder Plus loan is highly recommended. With a reserve account that yields interest over time and same-day funding to handle co-pays, it’s quite the bargain. 

The terms are affordable and you could receive up to $1,000! Great, isn’t it? Credit builder loans are an excellent way to both pay off your debt and strategically put your credit back in good standing.

4. Line of credit

If you have tangible equity in your home, you might qualify for a loan. Equity on your home can also make you eligible for a line-of-credit transaction using the house as collateral. 

The funds you generate from equity can help you pay your medical bills. However, this may be an unlikely option for you if you don’t have any means to pay back the loan because putting your property up as collateral could cause you to lose your home in the long run.

5. Credit card

Credit cards make it possible to pay for your medical treatment while skipping hefty interest fees. With an introductory 0% APR credit card, this is quite possible. 

However, it’s a bit risky because you have to repay the credit card debt if you want to escape charges. Also, credit cards impose a high-interest rate if the credit is not paid in full by the due date.

6. Personal loan

With a personal loan, you have a wide range of options because you can decide to pay back the loan over time or all at once. These loans almost always have lower interest rates especially compared to the interest rates of medical practices. 

Personal loans are either secured or unsecured. While secure loans make use of collateral as security, unsecured loans rely on credit history and credit standing. However, if you’re looking for a better alternative to paying off your medical loans, we recommend the credit builder loans from MoneyLion!

7. 401(k)

If you’re part of your employer’s 401(k) program, then you should have no issue borrowing against it. You can also do so for an IRA account as long as you do not surpass your credit limit. You can withdraw up to $10,000 or half of your account balance—whichever value is greater. 

However, you are not allowed to withdraw more than $50,000 in compliance with the IRS. The downside of using your 401(k) to pay for your medical bills is that you will be using money that would’ve otherwise been a long-term investment. To add to this, you’re required to repay the loan after paying tax on whatever income you earned. 

Use the MoneyLion Instacash solution

We have identified how important it is to be on top of our medical debt situation. However, you can make your life a lot easier by using our MoneyLion’s Instacash! Get up to $250 without hard credit checks, interest rates, or monthly fees. You can channel these funds to your medical bill payments, all while having absolutely nothing to lose!