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Will Travel Insurance Cover The Omicron Variant?

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December 26, 2021

Will Travel Insurance Cover The Omicron Variant?

Guess who's back, back again. Shady's back, tell a friend. Similar to these lyrics at the beginning of an Eminem song, Without Me, the Omicron variant has us all shrugging our shoulders asking, "when is this going to end?" This next major COVID strain after the Delta variant has some of us questioning upcoming travel plans and what might happen to our airplane, hotel, and automobile reservations we've already booked. So, you may be deliberating now if it is a good idea to buy travel insurance, and if you do will it actually cover something like the Omicron variant?

In the early days of the pandemic in 2020, there was a lot of uncertainty about what was and was not covered with travel insurance. When you actually read the fine print, travel insurance in 2020 largely failed to protect any travelers who wanted to cancel plans as the world came to a complete standstill. So, will travel insurance now cover the Omicron variant?

For the most part, the answer is yes. Travel insurance will treat COVID-19 (and its variants) like any other major medical emergency you have. The key is that you will need an official doctor's notes confirming your illness and why you are unable to travel which would allow you to qualify for benefits. It's also important to really read the fine print of the policy. Most policies will offer this basic coverage, but some policies will say in the fine print that they don't cover pandemics altogether.

One way to protect yourself altogether would be to purchase a Cancel For Any Reason (C.F.A.R) policy. Under this type of travel insurance policy, you could cancel for any reason, but you'll typically only be eligible to collect roughly 50% to 75% of your non-refundable expenses. Remember, these types of policies will be much more expensive than a regular travel insurance policy, but it gives you the ultimate protection no matter what happens with lockdowns, shutdown, or changes to your specific travel plans.

Some people wonder what happens if you book a trip internationally and they close down their borders as Israel did recently. Unfortunately, under most travel insurance policies, you simply aren't covered if your foreign destination closes its borders. As we see massive spikes of Omicron cases in the U.K., Germany, and other countries, your investment to travel could be at significant risk even if you do have a travel insurance policy. In addition, some countries are requiring travel insurance to be able to travel to their country. Singapore, for example, requires at least $22,000 of U.S. dollars of coverage in order to make the journey.

AirBnb has changed their policies over time and were more stringent in 2020. But keep a close eye on the fine print with AirBnb reservations, as the Omicron variant spreads, they may revert to the cancellation policies they used last year.

If you are going to shop for these policies, there are multitude of websites to purchase a good travel insurance policy. Insure My Trip and Allianz Travel Insurance are two respectable places to start the search for a travel insurance policy. It's never fun thinking about spending money on any type of insurance that you may never collect a nickel but given the uncertainty of the Omicron virus and other possible strings of COVID, this may be a necessary evil for you make sure your trip has smooth sailing.

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About the author

Ted Jenkin

Ted Jenkin

CEO and co-Founder

Hey!

My friends and family all think I'm a workaholic, but I say I'm just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid...

Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

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Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

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