How to Save Money on Super Visa Insurance
Since the launch of the Super Visa program back in 2013, thousands of Canadian citizens and permanent residents have been enjoying the opportunity invite their parents and grandparents for a visit to Canada!
If you are planning to apply for the Super Visa and see your loved ones in Canada, you should know that one of the official program requirements is a medical emergency insurance policy that covers at least $100,000 for the duration of 1 year.
While an insurance policy could seem to be a costly investment, here are a few tips on how to save money shopping for Super Visa insurance that come from our wealthy experience of being an insurance broker!
Apply early and Lock-in the rate!
It’s not a secret that different companies calculate their rates differently. In case with Super Visa insurance providers, while some of them calculate insurance premiums based on the age of the applicant at the time of application or purchase, others do so at the time of the effective date, when people arrive in Canada or exit their home country.
Although it is not applicable to every single person to be insured, it is quite often that people, whose age is at the last year of the current age-band, will benefit from applying for an insurance before their next birthday. In fact, the most common age-band changes occur every 5 years with a subsequent increase in insurance premiums.
So, it could be a good idea to apply well in advance to avoid paying higher insurance premiums!
The Destination Travel Group, also known as Destination Canada, TuGo, Travelance, Manulife and GMS allow for significant savings if you purchase the policy early. You can potentially save hundreds if not thousands of dollars by securing the current insurance rate for your parents or grandparents when you buy a policy for them in advance.
For instance, a 64 year old couple without pre-existing medical conditions buying the Destination Canada’s policy early will be able to lock in the rate at $2,956 for both of them – no matter what their age is once they actually arrive in Canada. If they wait until their 65th birthday to purchase the policy, the premium will skyrocket to $3,781, which translates into $825 of absolutely unnecessary expenses!
However, not all insurance providers have an option to lock in your rate at the moment of purchase. Even if it’s not reflected in the price right away, but your mom or dad’s arrival is delayed for some reason until after their next birthday, you might be in for a nasty surprise when they arrive and you are required to pay a higher premium.
Companies that calculate their premiums based on the applicant’s age as of the arrival or effective date include 21st Century and Allianz.
Manage you deductible wisely!
Deductible is one of the most misunderstood concepts, but it’s a great way to effectively manage your risk and keep more money in your pocket. By choosing a deductible you accept a responsibility to pay for a certain amount of expenses for medical emergency treatment covered by the insurance – up to the deductible amount – in exchange for a lower premium payable for the insurance policy.
Our advice is as follows: if your parents’ or grandparents’ medical history and your judgement doesn’t make it likely that they will have a claim – you can choose a certain deductible option and save some money when you purchase their insurance coverage.
Yet, it is still not recommended to go too far and select the highest deductible available. It is especially applicable to anything beyond a $1,000 as, in most cases, deductible is payable for each claim a person might have during the period coverage. More importantly, keeping your deductible manageable will not break the bank as you never truly know whether or not they will need to use an insurance policy to cover medical costs.
If your parents only stay a few months – don’t claim small expenses!
While Super Visa insurance is required for 1 year, most people don’t stay in Canada that long and, thus, don’t need insurance coverage for an entire period.
However, the good news is, all health insurance policies for Super Visa allow for an early departure refund in case insured people return to home country without having any claims made or reported on their file.
So if the insurance premium in full and there are no claims on the file, you may expect a refund for the number of unused days from the moment of departure until the expiry date of the insurance policy.
That is why, it would wise to cover small expenses out of pocket without claiming them, so you are still eligible for a refund when your parents or grandparents leave Canada. When in doubt – contact your insurance broker and we will be more than happy to do the math for you!