In a nutshell, a tax shelter allows your investments to grow free of tax. Many people think tax shelters are only for the rich but the biggest users of tax shelter is the middle class. When you buy a RRSP (IRA or 401K in the US), you are in fact buying a tax shelter. The money made inside the RRSP is allow to grow tax free until it’s taken out.
There are a few problems with a RRSP. The first is the Canadian government won’t allow you to put more than 18% of your income or $16,500, whichever is less, into a RRSP. The second problem is the money is subject to income tax when it’s taken out.
Another way to shelter income is by using life insurance. Life insurance proceeds are passed tax free to your beneficiaries. That’s good for your beneficiaries but what if you want the money? All whole life and universal life insurance policies have a cash surrender value that you get if you give up the insurance. If you take the cash, your beneficiaries get nothing and the money taken out gets taxed. Not a good deal. However, there is a way around this.
With the exception of term insurance, all other life insurance policies are made up of two components, the insurance component and an investment component. The key here is the investment component. While the money is inside the policy, its allowed to grow tax free, just like a RRSP. Knowing this, many investors put way more money than they have to into their policy. For example, a 37 year old non smoking female has to pay $622.50 a year to get $1 million of life insurance. If all she does is put $622.50 into her plan, all she’ll have is insurance. Anything above that amount goes into the investment component.
To prevent people from dumping in their life savings, the government sets limits on the maximum premium you can pay into a policy and still keep its tax shelter status. In the above example, the maximum is $41,847.61 a year. The higher your insurance needs, the higher the limit. Let’s assume that the above put $41,000 a year into her policy for 3 years and then stops after that. After paying for insurance cost the rest will go into the investment component, where it will grow tax free. If we assume an 8% yearly rate of return the policy will have a cash value of $1.3 million and death benefit of $2.15 million when our 37 year old female reaches 65. If she takes the cash, it gets taxed and she loses the death benefit. How can she take cash out, keep the death benefit and not pay taxes? By borrowing against the cash value.
A bank will lend up to 90% of the cash value on an insurance policy. So our investor can borrow up to $1.17 million from the bank to spend as she feels like. The money would not be taxed because it’s not income. The bank would capitalize the loan so she doesn’t have to make any payments. How does the bank get its money back? When she dies, the death benefit will pay off the bank loan plus accrue interest and any money left over will go to her beneficiary tax free.
So here you have an investment strategy that is completely sheltered from tax, allows you to take money out of the plan tax free, and allows you to transfer your estate to your heirs’ tax free. As with all investments, you should seek out the advice of an experience financial planner before proceeding.
Thursday, November 30, 2006
Tuesday, November 21, 2006
Travellers: Make your health policy work for you
The purchase of travel health insurance is a sensible idea for anyone taking trips outside Canada. If you get sick unexpectedly or have an accident while you are away, the health services in other countries are generally much more costly than those which OHIP covers. When buying your insurance however, it is important to take all the time needed to fully understand the coverage as well as the limitations of the policy. Be sure to determine your own needs first, say industry specialists, then read the policy thoroughly to be sure those needs are covered.
The Financial Services Commission of Ontario (FSCO) reminds the travelling consumer that it is not enough to simply buy travel health insurance; travellers must also know how the policy works and how to use it. FSCO is an agency of the Ministry of Finance that regulates Ontario's insurance industry. Its suggestions in this regard are based on records of what went wrong for others.
It is important for example, to compare the policies offered by different companies, not just for price, but also for the amount of coverage, pre-existing conditions, deductibles, limitations and exclusions. Your health, age, the medication you take, the length of your trip and the destination are all factors that affect the price of a policy and the types of medical costs your insurer will cover. In some cases you may have to find an insurer willing to write a policy tailored to your circumstances.
To better compare each policy before purchase, take a look at the Travel Health Insurance Policy Checklist, posted on the FSCO Web site. Here's a sample:
• Compare the maximum each policy will pay above Ontario health plan limits.• Look for age limits or medical criteria that might apply to you.
• Compare how the policies define terms such as pre-existing condition, or a medical exclusion. Do they affect your coverage?
• Compare deductibles and/or co-payment clauses to understand your own obligation.
• Compare payment procedures. Do you pay for the medical services first, followed by a reimbursement, or is the payment made directly from the insurer to the facility?
• Check if policies require you to use "preferred" doctors and hospitals.• Are you covered for participation in the sports and activities you have planned, or are they excluded?
• Can you buy extra coverage if you extend your trip?
• What is the full package cost of each policy?Don't forget, says FSCO, you may already have sufficient coverage from your credit card company or employee benefits plan. Don't buy more insurance if you are covered. Additional information on this subject is available online at www.fsco.gov.on.ca. Or, for a copy of their booklet Shopping for Travel Health Insurance phone (416) 590-7298 (Toll Free: 1-800-668-0128).
The Financial Services Commission of Ontario (FSCO) reminds the travelling consumer that it is not enough to simply buy travel health insurance; travellers must also know how the policy works and how to use it. FSCO is an agency of the Ministry of Finance that regulates Ontario's insurance industry. Its suggestions in this regard are based on records of what went wrong for others.
It is important for example, to compare the policies offered by different companies, not just for price, but also for the amount of coverage, pre-existing conditions, deductibles, limitations and exclusions. Your health, age, the medication you take, the length of your trip and the destination are all factors that affect the price of a policy and the types of medical costs your insurer will cover. In some cases you may have to find an insurer willing to write a policy tailored to your circumstances.
To better compare each policy before purchase, take a look at the Travel Health Insurance Policy Checklist, posted on the FSCO Web site. Here's a sample:
• Compare the maximum each policy will pay above Ontario health plan limits.• Look for age limits or medical criteria that might apply to you.
• Compare how the policies define terms such as pre-existing condition, or a medical exclusion. Do they affect your coverage?
• Compare deductibles and/or co-payment clauses to understand your own obligation.
• Compare payment procedures. Do you pay for the medical services first, followed by a reimbursement, or is the payment made directly from the insurer to the facility?
• Check if policies require you to use "preferred" doctors and hospitals.• Are you covered for participation in the sports and activities you have planned, or are they excluded?
• Can you buy extra coverage if you extend your trip?
• What is the full package cost of each policy?Don't forget, says FSCO, you may already have sufficient coverage from your credit card company or employee benefits plan. Don't buy more insurance if you are covered. Additional information on this subject is available online at www.fsco.gov.on.ca. Or, for a copy of their booklet Shopping for Travel Health Insurance phone (416) 590-7298 (Toll Free: 1-800-668-0128).
International Travel Insurance
If you're travelling within the UK you probably don't need insurance, but if you're travelling abroad then international travel insurance is a good idea. It covers you for everything from delays and cancellations to more serious things such as hijacking, kidnapping and muggings, and while even the most unlucky traveller isn't likely to need such cover you're also protected against more likely occurrences such as losing your passport.
When you're buying international travel insurance the premium will depend on where you're going. Most insurers split the world into several parts: Europe, which normally includes the Canary Islands and non-European Mediterranean countries; the US and Canada; Australia and New Zealand; and the rest of the world.
One thing to watch with international travel insurance policies is that some insurers won't cover certain countries at all: for example, at the moment you'll find it difficult to get cover for the Middle East, so that budget holiday in Baghdad is probably a bad idea.
Getting internation travel insurance is simple enough: simply head for the site of an insurer, from cheap firms such as Insure & Go to more established names such as Direct Line. Enter a few details, tell the site where you're planning to go, and the site will tell you how much your premium will cost.
When you're buying international travel insurance the premium will depend on where you're going. Most insurers split the world into several parts: Europe, which normally includes the Canary Islands and non-European Mediterranean countries; the US and Canada; Australia and New Zealand; and the rest of the world.
One thing to watch with international travel insurance policies is that some insurers won't cover certain countries at all: for example, at the moment you'll find it difficult to get cover for the Middle East, so that budget holiday in Baghdad is probably a bad idea.
Getting internation travel insurance is simple enough: simply head for the site of an insurer, from cheap firms such as Insure & Go to more established names such as Direct Line. Enter a few details, tell the site where you're planning to go, and the site will tell you how much your premium will cost.
Family Travel Insurance
If you're travelling alone then the odd problem isn't a big deal – but if you've got kids in tow, it can be a disaster. Whether it's flight delays, lost property, hijacking or just breaking down on the way to the airport and missing your flight, a family travel insurance policy can help you out if you get into trouble or compensate you if things go wrong.
When it comes to choosing a family travel insurance policy, not all policies are created equal. Most insurers include infants for free, but others such as Worldwide Travel Insurance also provide free cover for older children. Some insurers go one step further: the Post Office's family policy covers dependants, who can include grandchildren and nieces, and Nationwide's definition of "children" goes up to the age of 23.
Family travel insurance isn't just for the traditional mum and dad with 2.4 kids: many insurers have policies specifically designed for single parents, and you'll find them from firms such as Nationwide or Norwich Union.
If your children are slightly older, consider annual family travel insurance: many such policies cover your kids if they travel without you, which is handy if they want to go on holiday with their friends.
When it comes to choosing a family travel insurance policy, not all policies are created equal. Most insurers include infants for free, but others such as Worldwide Travel Insurance also provide free cover for older children. Some insurers go one step further: the Post Office's family policy covers dependants, who can include grandchildren and nieces, and Nationwide's definition of "children" goes up to the age of 23.
Family travel insurance isn't just for the traditional mum and dad with 2.4 kids: many insurers have policies specifically designed for single parents, and you'll find them from firms such as Nationwide or Norwich Union.
If your children are slightly older, consider annual family travel insurance: many such policies cover your kids if they travel without you, which is handy if they want to go on holiday with their friends.
Holiday Travel Insurance
You probably won't be hijacked or kidnapped by mercenaries during a fortnight in Majorca, but there are still plenty of reasons why holiday travel insurance could save your bacon.
Holiday travel insurance is a great way to stop problems from ruining your holiday. If your flight is delayed, you can get compensation; if it's really delayed, your insurance could cover the cost of hotel accommodation. Then there are big problems, such as cancelling your holiday or having to fly back early because your mum's ill. Without insurance, you won't get any money back. And then there's the health insurance that's included in your policy, which pays for emergency medical treatment and puts you in touch with expert help 24 hours a day.
You can get holiday travel insurance in two main forms: single trip, for when you're only going away once, and multi-trip, for when you expect to make lots of foreign trips in a year. There's a wide range of policies for individuals, couples, families and single parents too.
Holiday travel insurance is cheaper than you think: for two weeks in Europe, a single traveller will pay £10-£20 while a family can expect to pay £40-£50. When you consider what it would cost you if everything goes wrong, it's a small price to pay for peace of mind.
Holiday travel insurance is a great way to stop problems from ruining your holiday. If your flight is delayed, you can get compensation; if it's really delayed, your insurance could cover the cost of hotel accommodation. Then there are big problems, such as cancelling your holiday or having to fly back early because your mum's ill. Without insurance, you won't get any money back. And then there's the health insurance that's included in your policy, which pays for emergency medical treatment and puts you in touch with expert help 24 hours a day.
You can get holiday travel insurance in two main forms: single trip, for when you're only going away once, and multi-trip, for when you expect to make lots of foreign trips in a year. There's a wide range of policies for individuals, couples, families and single parents too.
Holiday travel insurance is cheaper than you think: for two weeks in Europe, a single traveller will pay £10-£20 while a family can expect to pay £40-£50. When you consider what it would cost you if everything goes wrong, it's a small price to pay for peace of mind.
Cheap Insurance
Insurance is a form of contract whereby periodic payments (also known as insurance premiums) are made to an insurance company, in order to provide an individual or business compensation in the event of property loss or damage.
The main purpose of insurance is to protect yourself or your family against the financial impact of a tragedy. In general, it is contract in which one party agrees to pay for another party’s financial loss resulting from a specified event. Insurance mainly consist of three things - insurer, insured and policy. An entity seeking to transfer risk (an individual, corporation, or association of any type) becomes the ‘insured’ party once risk is assumed by an ‘insurer’, the insuring party, by means of a contract, defined as an insurance ‘policy’.
There are two main ways to buy insurance. The first one is directly through an agent and the second one is to do it yourself. The main advantage of buying insurance from other is that an honest and competent insurer will decide according to the situation and make suggestions. The advantage of going on your own is that less money is needed for it. While buying any type of insurance, a person will save money by paying annually or semi-annually. Sometimes buying several types of insurance from the same company will save money.
There are different types of insurance available in the market. Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. There are main two types of life insurance that are term insurance and permanent insurance.
The medical insurance policy is a non-life insurance policy, which covers the expenses incurred by an individual in case of an injury or hospitalization. Individuals have to pay a minimal premium for buying medical insurance. Its main types are indemnity plan, preferred provider organization and health maintenance organization.
Homeowner insurance policy covers property and contents. There are two kinds of Homeowners Insurance policies and these policies can be divided into two categories named-Peril Insurance and all-risk insurance.
Auto insurance is the insurance against loss due to theft or traffic accidents. It can be purchased for cars, trucks and other vehicles. Its primary use is to provide protection against losses incurred as a result of car. Its main types are general liability, no-fault insurance, uninsured auto coverage and medical payments.
Car insurance is the insurance against loss due to theft or traffic accidents. Its main types are fully comprehensive auto insurance, third party insurance, fire and theft insurance, third party insurance, specialized car insurance.
Term life insurance provides protection for a specific period of time. It pays a benefit only if you die during the term. Term life insurance comes in two basic varieties term life policies and cash value policies.
There are numerous insurance providers that designs and markets insurance services for individuals, families, groups and businesses worldwide. Now, there are also online insurance facilities that help a person to select insurance just by clicking. After fulfilling the basic requirements of the insurance company, person is eligible for it.
The main purpose of insurance is to protect yourself or your family against the financial impact of a tragedy. In general, it is contract in which one party agrees to pay for another party’s financial loss resulting from a specified event. Insurance mainly consist of three things - insurer, insured and policy. An entity seeking to transfer risk (an individual, corporation, or association of any type) becomes the ‘insured’ party once risk is assumed by an ‘insurer’, the insuring party, by means of a contract, defined as an insurance ‘policy’.
There are two main ways to buy insurance. The first one is directly through an agent and the second one is to do it yourself. The main advantage of buying insurance from other is that an honest and competent insurer will decide according to the situation and make suggestions. The advantage of going on your own is that less money is needed for it. While buying any type of insurance, a person will save money by paying annually or semi-annually. Sometimes buying several types of insurance from the same company will save money.
There are different types of insurance available in the market. Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. There are main two types of life insurance that are term insurance and permanent insurance.
The medical insurance policy is a non-life insurance policy, which covers the expenses incurred by an individual in case of an injury or hospitalization. Individuals have to pay a minimal premium for buying medical insurance. Its main types are indemnity plan, preferred provider organization and health maintenance organization.
Homeowner insurance policy covers property and contents. There are two kinds of Homeowners Insurance policies and these policies can be divided into two categories named-Peril Insurance and all-risk insurance.
Auto insurance is the insurance against loss due to theft or traffic accidents. It can be purchased for cars, trucks and other vehicles. Its primary use is to provide protection against losses incurred as a result of car. Its main types are general liability, no-fault insurance, uninsured auto coverage and medical payments.
Car insurance is the insurance against loss due to theft or traffic accidents. Its main types are fully comprehensive auto insurance, third party insurance, fire and theft insurance, third party insurance, specialized car insurance.
Term life insurance provides protection for a specific period of time. It pays a benefit only if you die during the term. Term life insurance comes in two basic varieties term life policies and cash value policies.
There are numerous insurance providers that designs and markets insurance services for individuals, families, groups and businesses worldwide. Now, there are also online insurance facilities that help a person to select insurance just by clicking. After fulfilling the basic requirements of the insurance company, person is eligible for it.
American Express Travel Insurance
Phone: 0845 608 0845
American Express Travel Insurance isn't a stand-alone product; instead, it's part of the package of benefits offered to cardholders. Blue cards come with basic accident cover while Platinum cards include a large range of travel insurance services including annual multi-trip insurance.
Cover from basic accident protection to annual multi-trip cover
Family insurance
Available to cardholders only
American Express Travel Insurance isn't something you can order over the phone or on the Web; rather than a stand-alone product, it's part of the benefits package available to American Express cardholders.
The level of cover you get depends on the type of Amex card you have. The bargain basement Blue card comes with simple accident insurance that applies to any plane tickets you purchase with your card; if you've got a Platinum card, you get free annual multi-trip insurance. Presumably if you're loaded enough to qualify for a Centurion card, Amex will provide you with your very own army.
American Express Travel Insurance isn't for everyone, but if you're thinking of getting a new credit card to pay for a holiday, it might be worth considering Amex instead of separate travel insurance.
American Express Travel Insurance isn't a stand-alone product; instead, it's part of the package of benefits offered to cardholders. Blue cards come with basic accident cover while Platinum cards include a large range of travel insurance services including annual multi-trip insurance.
Cover from basic accident protection to annual multi-trip cover
Family insurance
Available to cardholders only
American Express Travel Insurance isn't something you can order over the phone or on the Web; rather than a stand-alone product, it's part of the benefits package available to American Express cardholders.
The level of cover you get depends on the type of Amex card you have. The bargain basement Blue card comes with simple accident insurance that applies to any plane tickets you purchase with your card; if you've got a Platinum card, you get free annual multi-trip insurance. Presumably if you're loaded enough to qualify for a Centurion card, Amex will provide you with your very own army.
American Express Travel Insurance isn't for everyone, but if you're thinking of getting a new credit card to pay for a holiday, it might be worth considering Amex instead of separate travel insurance.
Cheap Travel Insurance
If you're on a tight budget but still want some security if things go wrong, then it's possible to get very cheap travel insurance from a wide range of firms. If you're travelling alone, you can pay less than £10 for a fortnight's insurance that will cover almost any eventuality – a small price to pay when you consider the chaos even relatively minor problems could cause.
If you're looking for cheap travel insurance, there are a number of firms to choose from. OinC.com quoted us £11.04 for a fortnight's cover, while others were cheaper still: backpacker-friendly firm Outbacker Travel Insurance quoted just £9.60 for the same cover.
It's hard to argue with premiums of less than a tenner, but it's important to remember that cheap travel insurance isn't as comprehensive as more expensive products – and in many cases, there's only a few pounds' difference between the cheapest and the most comprehensive services.
It's important to think carefully about the cover you need for your trip: for example, can you live without baggage cover or compensation for delays? If you can't, then cheap travel insurance may turn out to be a false economy. Read the small print carefully.
If you're looking for cheap travel insurance, there are a number of firms to choose from. OinC.com quoted us £11.04 for a fortnight's cover, while others were cheaper still: backpacker-friendly firm Outbacker Travel Insurance quoted just £9.60 for the same cover.
It's hard to argue with premiums of less than a tenner, but it's important to remember that cheap travel insurance isn't as comprehensive as more expensive products – and in many cases, there's only a few pounds' difference between the cheapest and the most comprehensive services.
It's important to think carefully about the cover you need for your trip: for example, can you live without baggage cover or compensation for delays? If you can't, then cheap travel insurance may turn out to be a false economy. Read the small print carefully.
Annual Travel Insurance
Many people travel once a year, usually on package holidays – but these days the combination of cheap flights and busy lives mean that more and more people take a number of short breaks throughout the year. If that sounds like you, then annual travel insurance could save you a fortune.
For single travellers, annual travel insurance is likely to set you back four times the cost of cover for a single trip, so if you do a lot of travelling you'll save an awful lot of money by opting for annual travel insurance instead of several single-trip policies. It's a time-saver too: because you're covered all year round, you don't need to arrange insurance every time you travel.
Annual travel insurance is particularly handy if you've got a family: for example, Nationwide covers children to the age of 23 provided they still live at home and study full-time. You'll often find that your annual travel insurance policy covers your kids if they travel without you – although not all policies do this, so it's important to read the terms and conditions carefully.
If you only take one foreign trip per year then annual travel insurance is a waste of money, but if you travel more frequently it could save you a fortune.
For single travellers, annual travel insurance is likely to set you back four times the cost of cover for a single trip, so if you do a lot of travelling you'll save an awful lot of money by opting for annual travel insurance instead of several single-trip policies. It's a time-saver too: because you're covered all year round, you don't need to arrange insurance every time you travel.
Annual travel insurance is particularly handy if you've got a family: for example, Nationwide covers children to the age of 23 provided they still live at home and study full-time. You'll often find that your annual travel insurance policy covers your kids if they travel without you – although not all policies do this, so it's important to read the terms and conditions carefully.
If you only take one foreign trip per year then annual travel insurance is a waste of money, but if you travel more frequently it could save you a fortune.
10 Tips for Hassle-Free Business Travel
If you're a road warrior, these travel tips will help reduce the stress of your journeys.
1. Choose your Travel Modality Wisely Planes, trains or automobiles: what's the choice to be? While air travel is clearly the only way to go for long journeys, shorter trips of a couple of hundred miles might be faster via train, bus or auto. When making your decision, consider time spent traveling to and
from airports, plus time spent lining up for check in, security and departure. Also consider the effects inclement weather can have on your travel choice. It's no fun hearing the announcement that your plane can't land due to poor visibility and you'll be returning to your departure airport.
2. Consider Alternative Airports If you're flying, consider alternative airports that are outside the city you're going to visit. As a rule, these airports have fewer flights, less overbooking and less delays than their larger counterparts.
3. Obtain an International Drivers License If traveling outside your own country, an international driver's license will be more readily recognized than your locally issued driver's license. The cost is not prohibitive and in most regions, the licenses are easily obtained by showing your local driver's license. Inquire at your local Automobile Association.
4. Get Your Maps Before You Leave Home Travel is less stressful if you know how to get around. Before leaving home, obtain maps of your destination city. One approach is to visit web sites such as City Search (http://www.citysearch.com/) and print out maps. Place your printed maps in plastic folders for protection against the elements. Trying to read a road map while standing on a rainy street corner has its obvious disadvantages.
5. Carry Electronic Documents Rather than Hard Copy Rather than carry heavy stacks of brochures or sales letters, take electronic documents on diskettes and have them printed at a local printing service. Similarly, if you are working a booth in a trade show, it's a good idea to carry electronic documents in
case you run out of the stack you shipped from the office.
6. Find Hotels that Cater to Business Travelers Hotels that cater to business travelers will have Internet capabilities and offer access to business machines such as faxes and photocopiers.
7. Remember Adaptors and Converters If you're traveling to a foreign country, remember that you might need special voltage adaptors for electricity. You might also need plug adapters to accommodate both electrical plugs and telephone jacks. A good travel store will be able to help you decide what's needed.
8. Use Calling Cards When you're staying at a hotel, the phone bill can be a major expense. The cost of calling your family, checking your voice mail and checking your email is best handled by using a telephone calling card or a corporate credit card.
9. Check your Cellular Service Cellular phone companies regularly offer new rates. Check to be sure you're getting the best deal -- some now include long distance charges in the monthly fee. If your business travel will take you to small, out-of-the way towns, your digital phone might not work. You will need an analog or dual digital/anlog phone for such trips.
10. Protect Yourself Against Theft Before leaving home, make copies of your travel documents (passport, airline tickets, travel insurance, credit cards and itinerary).
Take copies with you and leave a copy with a contact at home. Take special precautions for your electronics. See what your local travel store has to offer in terms of protective luggage. You can purchase laptop cases that disguise the fact that they're used for laptops, or laptop cases that look old and
battered. And of course, you already know how fast and savvy a pickpocket can be. Avoid carrying important documents in your purse or hip pocket.
1. Choose your Travel Modality Wisely Planes, trains or automobiles: what's the choice to be? While air travel is clearly the only way to go for long journeys, shorter trips of a couple of hundred miles might be faster via train, bus or auto. When making your decision, consider time spent traveling to and
from airports, plus time spent lining up for check in, security and departure. Also consider the effects inclement weather can have on your travel choice. It's no fun hearing the announcement that your plane can't land due to poor visibility and you'll be returning to your departure airport.
2. Consider Alternative Airports If you're flying, consider alternative airports that are outside the city you're going to visit. As a rule, these airports have fewer flights, less overbooking and less delays than their larger counterparts.
3. Obtain an International Drivers License If traveling outside your own country, an international driver's license will be more readily recognized than your locally issued driver's license. The cost is not prohibitive and in most regions, the licenses are easily obtained by showing your local driver's license. Inquire at your local Automobile Association.
4. Get Your Maps Before You Leave Home Travel is less stressful if you know how to get around. Before leaving home, obtain maps of your destination city. One approach is to visit web sites such as City Search (http://www.citysearch.com/) and print out maps. Place your printed maps in plastic folders for protection against the elements. Trying to read a road map while standing on a rainy street corner has its obvious disadvantages.
5. Carry Electronic Documents Rather than Hard Copy Rather than carry heavy stacks of brochures or sales letters, take electronic documents on diskettes and have them printed at a local printing service. Similarly, if you are working a booth in a trade show, it's a good idea to carry electronic documents in
case you run out of the stack you shipped from the office.
6. Find Hotels that Cater to Business Travelers Hotels that cater to business travelers will have Internet capabilities and offer access to business machines such as faxes and photocopiers.
7. Remember Adaptors and Converters If you're traveling to a foreign country, remember that you might need special voltage adaptors for electricity. You might also need plug adapters to accommodate both electrical plugs and telephone jacks. A good travel store will be able to help you decide what's needed.
8. Use Calling Cards When you're staying at a hotel, the phone bill can be a major expense. The cost of calling your family, checking your voice mail and checking your email is best handled by using a telephone calling card or a corporate credit card.
9. Check your Cellular Service Cellular phone companies regularly offer new rates. Check to be sure you're getting the best deal -- some now include long distance charges in the monthly fee. If your business travel will take you to small, out-of-the way towns, your digital phone might not work. You will need an analog or dual digital/anlog phone for such trips.
10. Protect Yourself Against Theft Before leaving home, make copies of your travel documents (passport, airline tickets, travel insurance, credit cards and itinerary).
Take copies with you and leave a copy with a contact at home. Take special precautions for your electronics. See what your local travel store has to offer in terms of protective luggage. You can purchase laptop cases that disguise the fact that they're used for laptops, or laptop cases that look old and
battered. And of course, you already know how fast and savvy a pickpocket can be. Avoid carrying important documents in your purse or hip pocket.
Travel Insurance at a Glance
To travel to some destinations abroad, some insurance is always a good idea (such as trip cancellation, for instance). To others, medical evacuation insurance may spring to mind (in countries with limited medical facilities, for instance). Be sure to consider one or more of the following possibilities and prepare accordingly.
Check your existing insurance policies before you buy travel insurance to cover trip cancellation, lost luggage, medical expenses, or car rental insurance. You're likely to have partial or complete coverage. But if you need some, ask your travel agent about a comprehensive package. The cost of travel insurance varies widely, depending on the cost and length of your trip, your age and overall health, and the type of trip you're taking. Insurance for extreme sports or adventure travel, for example, will cost more than coverage for a cruise. Some insurers provide packages for specialty vacations, such as skiing or backpacking. More dangerous activities may be excluded from basic policies.
For information, contact one of the following popular insurers:
Access America (tel. 800/284-8300); www.accessamerica.com)
Highway to Health (tel. 888/243-2358, www.highway2health.com)
Travel Guard International (tel. 800/826-1300; www.travelguard.com)
Travel Insured International (tel. 800/243-3174; www.travelinsured.com)
Travelex Insurance Services (tel. 800/228-9792; www.travelex-insurance.com)
To compare policies and prices, visit any of these reliable online sources www.insuremytrip.com, www.quotewrite.com, www.quotetravelinsurance.com and www.tripinsurancestore.com.
Trip-Cancellation Insurance (TCI)
There are three major types of trip-cancellation insurance -- one, in the event that you pre-pay a cruise or tour that gets cancelled, and you can't get your money back; a second when you or someone in your family gets sick or dies, and you can't travel (but beware that you may not be covered for a pre-existing condition); and a third, when bad weather makes travel impossible. Some insurers provide coverage for events like jury duty; natural disasters close to home, like floods or fire; even the loss of a job. A few have added provisions for cancellations due to terrorist activities. Always check the fine print before signing on, and don't buy trip-cancellation insurance from the tour operator that may be responsible for the cancellation; buy it only from a reputable travel insurance agency. Don't overbuy. You won't be reimbursed for more than the cost of your trip.
Medical Insurance
Most health insurance policies cover you if you get sick away from home -- but check, particularly if an HMO insures you. If you travel abroad, note that with the exception of certain HMOs and Medicare/Medicaid, your medical insurance should cover medical treatment -- even hospital care -- overseas. However, most out-of-country hospitals make you pay your bills up front, and send you a refund after you've returned home and filed the necessary paperwork. In many cases, you pay the foreign hospital, then try to collect from your provider when you return home. Members of Blue Cross/Blue Shield can now use their cards at select hospitals in most major cities worldwide (tel. 800/810-BLUE or www.bluecares.com for a list of hospitals). If you purchase medical insurance from groups such as Access America, be warned that they pay you some or all of the difference after your primary coverage pays you first.
Under U.S. law, insurance companies are not required to cover any medical expenses incurred in countries on the State Department's Travel Advisory List, even if their policies indicate they will cover out-of-country medical expenses. Some supplemental carriers (such as the ones listed in this chapter) will sell travelers coverage for these areas. You can view the Travel Advisory List at http://travel.state.gov).
Some credit cards (American Express and certain gold and platinum Visa and Master Cards, for example) offer automatic flight insurance against death or dismemberment in case of an airplane crash if you charged the cost of your ticket to the card, and if you have signed up for the program in advance of our trip.
If you require additional insurance, try one of the following companies:
MEDEX International, 9515 Deereco Rd., Timonium, MD 21093-5375 (tel. 888/MEDEX-00 or 410/453-6300; fax 410/453-6301; www.medexassist.com)
Travel Assistance International (tel. 800/821-2828; www.travelassistance.com), 9200 Keystone Crossing, Suite 300, Indianapolis, IN 46240 (for general information on services, call the company's Worldwide Assistance Services, Inc., at tel. 800777-8710)
Only for diving destinations: The Divers Alert Network (DAN) (tel. 800/446-2671 or 919/684-8181; www.diversalertnetwork.org).
The cost of travel medical insurance varies widely. Check your existing policies before you buy additional coverage. Also, check to see if your medical insurance covers you for emergency medical evacuation: If you have to buy a one-way same-day ticket home and forfeit your nonrefundable roundtrip ticket, you may be out big bucks.
Lost-Luggage Insurance
On domestic flights, checked baggage is covered up to $2,500 per ticketed passenger. On international flights (including U.S. portions of international trips), baggage is limited to approximately $9.07 per pound, up to approximately $635 per checked bag. If you plan to check items more valuable than the standard liability, you may purchase "excess valuation" coverage from the airline, up to $5,000. Be sure to take any valuables or irreplaceable items with you in your carry-on luggage. If you file a lost luggage claim, be prepared to answer detailed questions about the contents of your baggage, and be sure to file a claim immediately, as most airlines enforce a 21-day deadline. Before you leave home, compile an inventory of all packed items and a rough estimate of the total value to ensure you're properly compensated if your luggage is lost. You will only be reimbursed for what you lost, no more. Once you've filed a complaint, persist in securing your reimbursement; there are no laws governing the length of time it takes for a carrier to reimburse you. If you arrive at a destination without your bags, ask the airline to forward them to your hotel or to your next destination; they will usually comply. If your bag is delayed or lost, the airline may reimburse you for reasonable expenses, such as a toothbrush or a set of clothes, but the airline is under no legal obligation to do so.
Lost luggage may also be covered by your homeowner's or renter's policy. Many platinum and gold credit cards cover you as well. If you choose to purchase additional lost-luggage insurance, be sure not to buy more than you need. Buy in advance from the insurer or a trusted agent (prices will be much higher at the airport).
Car Rental Insurance (Loss/Damage Waiver or Collision Damage Waiver)
If you hold a private auto insurance policy, you probably are covered in the U.S., but not abroad, for loss or damage to the car, and liability in case a passenger is injured. The credit card you used to rent the card also may provide some coverage.
Car rental insurance probably does not cover liability if you caused the accident. Check your own auto insurance policy, the rental company policy, and your credit card coverage for the extent of coverage: Is your destination covered? Are other drivers covered? How much liability is covered if a passenger is injured? (If you rely on your credit card for coverage, you may want to bring a second credit card with you, as damages may be charged to your card and you may find yourself stranded with no money.)
Car rental insurance costs about $20 a day and up.
What To Do If You Get Sick Away From Home
If you worry about getting sick away from home, consider purchasing medical travel insurance and carry your ID card in your purse or wallet. In most cases, your existing health plan will provide the coverage you need. See the section on insurance earlier in this chapter for more information.
If you suffer from a chronic illness, consult your doctor before your departure. For conditions like epilepsy, diabetes, or heart problems, wear a Medic Alert Identification Tag (tel. 800/825-3785; www.medicalert.org), which will immediately alert doctors to your condition and give them access to your records through Medic Alert's 24-hour hotline.
Pack prescription medications in your carry-on luggage, and carry prescription medications in their original containers. Also bring along copies of your prescriptions in case you lose your pills or run out. Carry the generic name of prescription medicines, in case a local pharmacist is unfamiliar with the brand name.
And don't forget sunglasses and an extra pair of contact lenses or prescription glasses.
Contact the International Association for Medical Assistance to Travelers (IAMAT) (tel. 716/754-4883 or 416/652-0137; www.iamat.org, e-mail iamat@sentex.net for tips on travel and health concerns in the countries you're visiting, and a free list of local, English-speaking doctors around the world. IAMAT is ahead of many governmental organizations in providing information about conditions such as malaria worldwide, and for a small donation (they suggest $25) will provide you with a set of all their publications showing where you can eat and drink the food, water and milk safely, and where not.
The United States Centers for Disease Control and Prevention (tel. 800/311-3435; www.cdc.gov) provides up-to-date information on necessary vaccines and health hazards by region or country (Their booklet, Health Information for International Travel, is $25 by mail; on the Internet, it's free). Any foreign consulate can provide a list of area doctors who speak English. If you get sick, consider asking your hotel concierge to recommend a local doctor -- even his or her own. You can also try the emergency room at a local hospital; many have walk-in clinics for emergency cases that are not life threatening. You may not get immediate attention (just as is true back home in most cases), but you won't pay the high price of an emergency room visit such as those charged in the USA (usually a minimum of $300 just for signing your name).
Additional Advice -- The Safe Traveler
Since the attacks on America of September 11, 2001, most travelers are concerned about safety, particularly if they travel by air. Both government and the airlines have acted to improve security at airports and on aircraft, though it must remain true that there can never be too much security in either place. Moreover, there has been a sea change in the attitude of what passengers should do in an emergency. For decades, governments and airlines have unanimously ordered passengers to stay in their seats, do nothing in cases of attempted hijackings and the like. Now, however, passengers are taking matters into their own hands, as was proved in the December 2001 case of would-be bomber Robert Reid, who was subdued before he could destroy the American airline jet on which he was a passenger. Alert fellow passengers and a brave flight attendant stopped him before he could ignite his shoe bombs. (It is generally believed that passengers on Flight 93, the fourth plane taken over by Al Qaeda terrorists on September 11, fought with the criminals, causing the plane to crash before it could destroy its presumed target of either the Capitol Building or the White House in Washington DC.) Report any suspicious activities, not just physical appearances, to authorities the minute you spot it. Better to be inconvenienced than risk a hijacking or even just to sit there worrying about a possible hijacking throughout your flight.
On the ground, you should be alert, also. In countries where there is a chance of guerrilla activity, stay in well-recognized tourist areas, but keep away from crowds, especially political rallies. Don't sit next to plate glass windows in hotel lobbies or restaurants in these countries. In developing countries, take taxis from your hotel rank, ensuring that the doorman approves the taxi and opens the door for you. Returning to the hotel, phone and ask for them to send a cab to get you, with the cab's number for you to verify. In such places, use public transport only when you are sure of the destination and the stops en route.
Check your existing insurance policies before you buy travel insurance to cover trip cancellation, lost luggage, medical expenses, or car rental insurance. You're likely to have partial or complete coverage. But if you need some, ask your travel agent about a comprehensive package. The cost of travel insurance varies widely, depending on the cost and length of your trip, your age and overall health, and the type of trip you're taking. Insurance for extreme sports or adventure travel, for example, will cost more than coverage for a cruise. Some insurers provide packages for specialty vacations, such as skiing or backpacking. More dangerous activities may be excluded from basic policies.
For information, contact one of the following popular insurers:
Access America (tel. 800/284-8300); www.accessamerica.com)
Highway to Health (tel. 888/243-2358, www.highway2health.com)
Travel Guard International (tel. 800/826-1300; www.travelguard.com)
Travel Insured International (tel. 800/243-3174; www.travelinsured.com)
Travelex Insurance Services (tel. 800/228-9792; www.travelex-insurance.com)
To compare policies and prices, visit any of these reliable online sources www.insuremytrip.com, www.quotewrite.com, www.quotetravelinsurance.com and www.tripinsurancestore.com.
Trip-Cancellation Insurance (TCI)
There are three major types of trip-cancellation insurance -- one, in the event that you pre-pay a cruise or tour that gets cancelled, and you can't get your money back; a second when you or someone in your family gets sick or dies, and you can't travel (but beware that you may not be covered for a pre-existing condition); and a third, when bad weather makes travel impossible. Some insurers provide coverage for events like jury duty; natural disasters close to home, like floods or fire; even the loss of a job. A few have added provisions for cancellations due to terrorist activities. Always check the fine print before signing on, and don't buy trip-cancellation insurance from the tour operator that may be responsible for the cancellation; buy it only from a reputable travel insurance agency. Don't overbuy. You won't be reimbursed for more than the cost of your trip.
Medical Insurance
Most health insurance policies cover you if you get sick away from home -- but check, particularly if an HMO insures you. If you travel abroad, note that with the exception of certain HMOs and Medicare/Medicaid, your medical insurance should cover medical treatment -- even hospital care -- overseas. However, most out-of-country hospitals make you pay your bills up front, and send you a refund after you've returned home and filed the necessary paperwork. In many cases, you pay the foreign hospital, then try to collect from your provider when you return home. Members of Blue Cross/Blue Shield can now use their cards at select hospitals in most major cities worldwide (tel. 800/810-BLUE or www.bluecares.com for a list of hospitals). If you purchase medical insurance from groups such as Access America, be warned that they pay you some or all of the difference after your primary coverage pays you first.
Under U.S. law, insurance companies are not required to cover any medical expenses incurred in countries on the State Department's Travel Advisory List, even if their policies indicate they will cover out-of-country medical expenses. Some supplemental carriers (such as the ones listed in this chapter) will sell travelers coverage for these areas. You can view the Travel Advisory List at http://travel.state.gov).
Some credit cards (American Express and certain gold and platinum Visa and Master Cards, for example) offer automatic flight insurance against death or dismemberment in case of an airplane crash if you charged the cost of your ticket to the card, and if you have signed up for the program in advance of our trip.
If you require additional insurance, try one of the following companies:
MEDEX International, 9515 Deereco Rd., Timonium, MD 21093-5375 (tel. 888/MEDEX-00 or 410/453-6300; fax 410/453-6301; www.medexassist.com)
Travel Assistance International (tel. 800/821-2828; www.travelassistance.com), 9200 Keystone Crossing, Suite 300, Indianapolis, IN 46240 (for general information on services, call the company's Worldwide Assistance Services, Inc., at tel. 800777-8710)
Only for diving destinations: The Divers Alert Network (DAN) (tel. 800/446-2671 or 919/684-8181; www.diversalertnetwork.org).
The cost of travel medical insurance varies widely. Check your existing policies before you buy additional coverage. Also, check to see if your medical insurance covers you for emergency medical evacuation: If you have to buy a one-way same-day ticket home and forfeit your nonrefundable roundtrip ticket, you may be out big bucks.
Lost-Luggage Insurance
On domestic flights, checked baggage is covered up to $2,500 per ticketed passenger. On international flights (including U.S. portions of international trips), baggage is limited to approximately $9.07 per pound, up to approximately $635 per checked bag. If you plan to check items more valuable than the standard liability, you may purchase "excess valuation" coverage from the airline, up to $5,000. Be sure to take any valuables or irreplaceable items with you in your carry-on luggage. If you file a lost luggage claim, be prepared to answer detailed questions about the contents of your baggage, and be sure to file a claim immediately, as most airlines enforce a 21-day deadline. Before you leave home, compile an inventory of all packed items and a rough estimate of the total value to ensure you're properly compensated if your luggage is lost. You will only be reimbursed for what you lost, no more. Once you've filed a complaint, persist in securing your reimbursement; there are no laws governing the length of time it takes for a carrier to reimburse you. If you arrive at a destination without your bags, ask the airline to forward them to your hotel or to your next destination; they will usually comply. If your bag is delayed or lost, the airline may reimburse you for reasonable expenses, such as a toothbrush or a set of clothes, but the airline is under no legal obligation to do so.
Lost luggage may also be covered by your homeowner's or renter's policy. Many platinum and gold credit cards cover you as well. If you choose to purchase additional lost-luggage insurance, be sure not to buy more than you need. Buy in advance from the insurer or a trusted agent (prices will be much higher at the airport).
Car Rental Insurance (Loss/Damage Waiver or Collision Damage Waiver)
If you hold a private auto insurance policy, you probably are covered in the U.S., but not abroad, for loss or damage to the car, and liability in case a passenger is injured. The credit card you used to rent the card also may provide some coverage.
Car rental insurance probably does not cover liability if you caused the accident. Check your own auto insurance policy, the rental company policy, and your credit card coverage for the extent of coverage: Is your destination covered? Are other drivers covered? How much liability is covered if a passenger is injured? (If you rely on your credit card for coverage, you may want to bring a second credit card with you, as damages may be charged to your card and you may find yourself stranded with no money.)
Car rental insurance costs about $20 a day and up.
What To Do If You Get Sick Away From Home
If you worry about getting sick away from home, consider purchasing medical travel insurance and carry your ID card in your purse or wallet. In most cases, your existing health plan will provide the coverage you need. See the section on insurance earlier in this chapter for more information.
If you suffer from a chronic illness, consult your doctor before your departure. For conditions like epilepsy, diabetes, or heart problems, wear a Medic Alert Identification Tag (tel. 800/825-3785; www.medicalert.org), which will immediately alert doctors to your condition and give them access to your records through Medic Alert's 24-hour hotline.
Pack prescription medications in your carry-on luggage, and carry prescription medications in their original containers. Also bring along copies of your prescriptions in case you lose your pills or run out. Carry the generic name of prescription medicines, in case a local pharmacist is unfamiliar with the brand name.
And don't forget sunglasses and an extra pair of contact lenses or prescription glasses.
Contact the International Association for Medical Assistance to Travelers (IAMAT) (tel. 716/754-4883 or 416/652-0137; www.iamat.org, e-mail iamat@sentex.net for tips on travel and health concerns in the countries you're visiting, and a free list of local, English-speaking doctors around the world. IAMAT is ahead of many governmental organizations in providing information about conditions such as malaria worldwide, and for a small donation (they suggest $25) will provide you with a set of all their publications showing where you can eat and drink the food, water and milk safely, and where not.
The United States Centers for Disease Control and Prevention (tel. 800/311-3435; www.cdc.gov) provides up-to-date information on necessary vaccines and health hazards by region or country (Their booklet, Health Information for International Travel, is $25 by mail; on the Internet, it's free). Any foreign consulate can provide a list of area doctors who speak English. If you get sick, consider asking your hotel concierge to recommend a local doctor -- even his or her own. You can also try the emergency room at a local hospital; many have walk-in clinics for emergency cases that are not life threatening. You may not get immediate attention (just as is true back home in most cases), but you won't pay the high price of an emergency room visit such as those charged in the USA (usually a minimum of $300 just for signing your name).
Additional Advice -- The Safe Traveler
Since the attacks on America of September 11, 2001, most travelers are concerned about safety, particularly if they travel by air. Both government and the airlines have acted to improve security at airports and on aircraft, though it must remain true that there can never be too much security in either place. Moreover, there has been a sea change in the attitude of what passengers should do in an emergency. For decades, governments and airlines have unanimously ordered passengers to stay in their seats, do nothing in cases of attempted hijackings and the like. Now, however, passengers are taking matters into their own hands, as was proved in the December 2001 case of would-be bomber Robert Reid, who was subdued before he could destroy the American airline jet on which he was a passenger. Alert fellow passengers and a brave flight attendant stopped him before he could ignite his shoe bombs. (It is generally believed that passengers on Flight 93, the fourth plane taken over by Al Qaeda terrorists on September 11, fought with the criminals, causing the plane to crash before it could destroy its presumed target of either the Capitol Building or the White House in Washington DC.) Report any suspicious activities, not just physical appearances, to authorities the minute you spot it. Better to be inconvenienced than risk a hijacking or even just to sit there worrying about a possible hijacking throughout your flight.
On the ground, you should be alert, also. In countries where there is a chance of guerrilla activity, stay in well-recognized tourist areas, but keep away from crowds, especially political rallies. Don't sit next to plate glass windows in hotel lobbies or restaurants in these countries. In developing countries, take taxis from your hotel rank, ensuring that the doorman approves the taxi and opens the door for you. Returning to the hotel, phone and ask for them to send a cab to get you, with the cab's number for you to verify. In such places, use public transport only when you are sure of the destination and the stops en route.
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