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Many ancillary benefits available from your credit cards are well known and well utilized. Trip cancellation insurance, delayed baggage insurance, lost baggage insurance and trip delay protection can quite literally save the day and justify an annual fee. Today, I’ll explain a couple of lesser-known benefits that you hopefully won’t have to use but, if needed, can protect you from extreme financial hardship and ensure your family and loved ones are provided for if something happens to you. You can easily find the coverage and terms of any protection offered by your credit card by doing a quick web search for the card’s benefits guide.
Travel Accident Insurance
Often called common carrier insurance, this is a policy that pays in case of death, losing eye sight, or losing a limb(s) while on a plane, train, ship or bus licensed to carry passengers and available to the public. To be eligible, you typically have to pay for the entire fare with the credit card and, according to American Express, the accident must be while “riding solely as a passenger in, or boarding, or alighting from, or being struck by a common carrier conveyance on a covered trip.”
Different credit cards have different payment tables for how much your beneficiary would receive in case of death, losing one limb, losing two limbs, losing sight in one eye or becoming legally blind. Coverage is also typically extended to authorized users on the account, spouses, domestic partners and dependent children of the card holder on trips paid for with the card. By default, the beneficiaries in order of precedence are spouse, then children, then estate. You can submit a letter to the card issuer to establish another beneficiary.
Here are some of the cards that offer travel accident insurance:
All varieties of the Platinum card offer the same travel accident policy. If you read through the travel accident insurance terms and conditions, you’ll find that Amex will pay $500,000 for loss of life, loss of two limbs, loss of eyesight in both eyes and $250,000 for loss of sight in one eye or loss of one limb. You or your beneficiary will not receive payment if the loss is from suicide or an act of war, if death is caused by a sickness, if the injury happens in a rental or personal vehicle or if you’re acting as any part of the crew of the common carrier.
American Express does offer travel accident insurance on a host of its products, but none pay as much as the Platinum family of cards.
The Prestige offers up to $1,000,000 in worldwide travel accident insurance. (Note that this card is currently not accepting applications; it’s relaunching on Jan. 4 2019.) Your spouse, domestic partner and dependents traveling on a common carrier whose fare was paid in full with the Prestige are covered. The card pays out the following amounts based on the loss you encounter:
Any claim submitted under the following conditions are excluded from coverage:
- Losses as a result of a riot or act of war
- Traveling in a taxi, car service, rental car or rideshare service
- Boarding or exiting a Common Carrier while engaging in extreme activities
- Death or injury due to natural causes, disease, illness or self-inflicted injuries
Barclaycard World Elite Mastercards
The Barclaycard Arrival Plus World Elite Mastercard and the JetBlue Plus Card are two examples of Barclaycard products offering travel accident insurance. You, your spouse, domestic partner and unmarried children under the age of 25 are covered up to $250,000 payable for accidental loss of life, loss of two or more limbs, loss of sight of both eyes, speech and hearing or any combination thereof.
The Sapphire Reserve card offers the travel accident insurance benefit to the widest array of travelers whose fares have been paid with the card. Chase includes “you, your spouse, your spouse’s or domestic partner’s children, including adopted children or stepchildren; legal guardians or wards; siblings or siblings-in-law; parents or parents-in-law; grandparents or grandchildren; aunts or uncles; nieces or nephews.” Chase pays up to $1,000,000 for a loss based on the following table with $1,000,000 being 100%:
Some interesting exclusions with Chase that would prevent a payout include: if the insured person participating in a motorized vehicular race or speed contest, the insured person participating in any professional sporting activity for which they received a salary or prize money or if the insured person traveling or flying on any aircraft engaged in flight on a rocket propelled or rocket launched aircraft. That means your loved ones will not be eligible for coverage if something happens to you on your Virgin Galactic flight. As a final note, if you use your Chase Ultimate Rewards points to book your trip, you are covered under the card’s benefits.
Emergency Evacuation Insurance
In the past, when traveling to remote destinations like the Maldives and Fiji I bought third-party emergency medical evacuation insurance not realizing the cards I already had would have covered me. There are a few crucial aspects of this insurance you need to understand and follow so you don’t compound your medical situation with the stress of financial hardship.
- Everything must be approved and coordinated through a benefit administrator. This is who you or your companions should call when things first start looking like you’ll need to be moved. Nothing that you decide to pay for on your own will be reimbursed.
- Evacuation does not mean repatriation. You won’t be evacuated back to the US if you’re far overseas. Most policies state you’ll be moved to the nearest medical facility capable of proper care.
- Pre-existing conditions may lead to your request for evacuation at the credit card provider’s expense being denied. Read the full terms and benefits guide for your credit card to see which exclude these conditions and the credit card’s definition of a pre-existing condition.
- The coverage is only for the cost of evacuation, not medical care. You still need medical insurance to pay the doctors and staff who provide you care.
- Some cards have country exclusions, so don’t expect to head into Syria or Afghanistan and rely on your credit card benefit administrator to get you to a hospital.
Here are a few cards that offer emergency evacuation insurance:
In my opinion, the most generous emergency evacuation insurance lies in the Platinum family of cards. There’s no cost cap; benefits are extended to immediate family and children under 23 or under 26 if enrolled full-time in school; and you don’t even have to use the card to pay for the trip. You must be on a trip less than 90 days in length and at least 100 miles away from your residence. A Premium Global Assist (PGA) administrator must coordinate everything in order to not incur any cost. The benefit will also pay economy airfare for a minor under 16 to be returned home if left unattended, pay for an escort to accompany that minor if required to get them home, and get a family member to the place of treatment if hospitalization of more than 10 consecutive days is expected.
Other American Express cards offer access to the Premium Global Assist Hotline, however anything they coordinate will be at your expense. Make sure you read the Amex benefits guide for your card carefully.
If at least a portion of your or an immediate family member’s trip was paid for with either of these cards, you’re eligible for up to $100,000 in emergency medical evacuation. (Note that the Ritz-Carlton Rewards Card is no longer open for applications.) Your covered trip must be between five and 60 days, and be at least 100 miles from your residence. If you are hospitalized for more than eight days, the benefit administrator can arrange for a relative or friend to fly round-trip in economy to your location. You can also be reimbursed for the cost of an economy ticket home, if your original ticket cannot be used. In a worst-case situation, the benefit also pays up to $1,000 for the repatriation of your remains.
The card covers up to $100,000 of emergency medical evacuation coverage. You have to use the card or Citi points to book your trip in order to be eligible, and your trip must be less than 60 days in length. The coverage extends to your spouse, domestic partner or dependents traveling with you. Coverage is excluded if you are less than 75 miles from home, the evacuation was not preauthorized by the benefit administrator or the covered traveler was involved in fraud, illegal activity a riot or act of way.
I’d be perfectly happy to go through a lifetime of travels and never have to worry about either of these policies. That said, researching for this post has driven me to make sure my Amex Platinum is always in my wallet when I travel to provide peace of mind if I need to get to a hospital. Benefit guides are updated regularly, so make sure you don’t toss them in the trash when updates show up in the mail and read the online guides for the latest terms and conditions.
Featured image via Shutterstock.
The American Express Platinum card has some of the best perks out there: cardholders enjoy the best domestic lounge access (Delta SkyClubs, Centurion Lounges, and Priority Pass), up to a $200 annual airline fee credit as well as up to $200 in Uber credits, and mid-tier elite status at SPG, Marriott, and Hilton. Combined with the 60,000 point welcome offer -- worth $1,140 based on TPG's valuations -- this card is a no-brainer for frequent travelers. Here are 5 reasons you should consider this card, as well as how you can figure out if the $550 annual fee makes sense for you.
- Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
- Enjoy Uber VIP status and free rides in the U.S. up to $15 each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings.
- 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
- 5X Membership Rewards points on prepaid hotels booked on amextravel.com.
- Enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
- Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
- $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
- Get up to $100 in statement credits annually for purchases at Saks Fifth Avenue on your Platinum Card®. Enrollment required.
- $550 annual fee.
- Terms Apply.
- See Rates & Fees