Must-Know Travel Medical Insurance Tips for Retirees 

Imagine retiring and finally having the time and money to travel, whether it’s hiking the Machu Picchu trails, going on a safari in Africa, or snorkeling in the Maldives. While on this dream vacation, you sprain your ankle, get appendicitis, or suffer from dehydration and need immediate medical care that’s not nearby. Suddenly, you’re being airlifted to a health care facility in the nearest city. While you may feel relieved to get the aid you need, you can’t help but worry about the cost of transportation and treatment. 

Since Medicare coverage outside the U.S. is very limited, having travel medical insurance or international insurance coverage is crucial in this scenario.¹ In a foreign country, the average cost of an air ambulance trip can range from $50,000 to $150,000 or more.² Emergency ground transportation in an ambulance will likely be in the hundreds of dollars. 

If you plan to be one of the millions of people who travel internationally from the U.S. each month, and are retired, travel health insurance is something to consider seriously. Aside from the potential scenario of needing medical evacuation from a remote area, you could be one of the 66% of travelers who develop an illness related to international travel.³  

There are many providers of travel health insurance — your plan options and costs will depend on factors such as your current health coverage, reason for travel, destination, age, trip duration, and time of year for travel. And, like any insurance plan, there will be choices related to the type and amount of coverage you select, as well as deductibles and premiums.  

Consider this example: 

Secondary insurance plans are also available at less cost if you already have a primary coverage provider with overseas health care coverage, such as a federal employee plan. In addition, Cigna Global and several other health insurance providers offer insurance for expats if your ultimate goal is to retire abroad. 

When considering travel medical insurance or international insurance coverage, think about the following: 

1. Checking destination requirements: 

• Proof of travel medical insurance coverage may be necessary to enter a country, as is the case with Cuba, Nepal, Laos, and others.⁴  

• You may need to purchase insurance from a company registered in that country to gain entry, such as required by Ukraine. 

• Many countries require that 1) your existing U.S. health care plan provides coverage while you are in that country or 2) you have travel medical insurance that covers emergency medical evacuation.  

2. Potential risks: 

• Pre-existing conditions might impact coverage and cost.  

• There are destinations and activities that insurance companies consider high-risk, and they may warrant more coverage or lower deductibles.  

• The State Department provides a list of countries that they consider high-risk for U.S. international travelers for reasons such as terrorism or human trafficking. The agency also provides resources on its website for preparing to travel abroad for adventures such as ziplining, safaris, bungee jumping, mountain biking, and more. 

3. Financial and mental benefits: 

• Travel medical insurance can protect you or your beneficiaries from extreme costs due to emergency medical evacuation, dismemberment, and repatriation of remains. 

• There are providers who offer comprehensive plans that cover medical expenses as well as non-refundable travel expenses due to trip cancellation or interruption, or the cost of lost luggage. 

• A plan might offer personal liability coverage that protects you if you are deemed liable for causing injury to a person or property while traveling. 

• Having travel medical insurance can provide confidence, knowing that you are covered in case of unforeseen medical issues, as well as having a resource for finding facilities or transportation for receiving aid. 

While travel medical insurance is not always mandatory for international travel, it can be a wise investment to help ensure you are protected against unexpected medical expenses. Carefully consider all the information provided above before selecting a policy for you or your family. Talk to your wealth advisor if you’re planning a trip abroad and want help with contemplating insurance options. 

If you are not a Mercer Advisors client and want more information on how insurance and international travel costs may affect your retirement plan, let’s talk.  

1. “Medicare Coverage Outside the United States”, medicare.gov. 

2. “How Much Does An Air Ambulance Cost?”, Global Air Ambulance, May 9, 2023. 

3. “The Ill Returning Traveler,” American Family Physician, October 2023. 

4. “What Countries Require Travel Insurance for Entry?”, Los Angeles Times, April 25, 2024. 

Mercer Advisors Inc. is a parent company of Mercer Global Advisors Inc. and is not involved with investment services. Mercer Global Advisors Inc. (“Mercer Advisors”) is registered as an investment advisor with the SEC. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. 

All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Some of the research and ratings shown in this presentation come from third parties that are not affiliated with Mercer Advisors. The information is believed to be accurate but is not guaranteed or warranted by Mercer Advisors. Content, research, tools and stock or option symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. Hypothetical examples are for illustrative purposes only. For financial planning advice specific to your circumstances, talk to a qualified professional at Mercer Advisors.