Travel insurance didn’t cover her Princess cruise after husband’s death

No refund for you. / Photo by busy printing - Flickr
Question: I am hoping you can help me get a refund for a cruise that my husband and I booked last June with Princess Cruises. Jim, my husband, was diagnosed with pancreatic cancer in the spring.

At the time we booked the cruise, his doctors at the hospital were very optimistic about his prognosis. He visited the hospital on a monthly basis for checkups. He had finished his chemo treatment at that time and was being monitored. He was given five years or more to live, and we were ecstatic.

As a result, we decided, along with other members of our family, to take a cruise over Christmas, since Jim was born on Christmas Day. We did elect to take the insurance from Princess Cruises, knowing that in the event that we couldn’t go on the cruise, we would be reimbursed.

Unfortunately, my husband took a turn for the worse in mid-November and his doctor advised him not to go on the cruise. He passed away in December.

Since then, Princess Cruises has denied our claim because Jim had a pre-existing condition and not even the immediate family could be reimbursed because of this policy. We were not aware of this policy; it was not explained to us when we purchased the insurance plan.

As his widow, I am asking that you help me with this claim. Princess Cruises is offering me a 75 percent discount on my next cruise. I can’t even think of taking a cruise because of the financial responsibilities that I have been left with. The money we paid for the cruise would certainly help me pay the many bills that are piling up right now. — Christine Rehak, Seneca, Ill.

Answer: My condolences on your loss. In a perfect world, Princess would refund your cruise, no questions asked. But a look at the terms of your Princess Vacation Protection shows that, sadly, it is correct: The plan doesn’t cover or reimburse for any loss resulting from a pre-existing medical condition.

When you booked your cruise, either Princess or your travel agent should have mentioned the pre-existing clause in your insurance. Your husband’s condition wasn’t covered, and if he couldn’t travel and you had to cancel your cruise, you’d be out of luck.

Offering a 75 percent credit was a nice gesture. The way I read Princess’ policy, it probably could have kept all of your money.

Your story underscores the importance of shopping around for travel insurance. It appears you went with the Princess plan without looking into other insurance policies, some of which might have covered your trip. The next time you take a cruise, you might want to ask your travel agent about other insurance choices that better fit your needs.

When you read the policy, be sure to review the definitions of “pre-existing condition” (that’s the biggest insurance “gotcha” clause) and ask if there’s any way a claim might be denied if you had to cancel your trip. And by the way, that’s not just true with someone who has a terminal diagnosis, but anyone with a medical condition that could potentially interfere with a trip.

Even though Princess is technically right, I decided to ask them about your case. I thought that it might have a little compassion and consider refunding your cruise. I was right.

Princess said it would make “an exception” to its policy, and offered you and your family a full refund.

← Older Comments
  • TonyA_says

    Those are 2 different things – Pre-Existing Conditions and Cancel for Any Reason. For Princess, the cancel for any reason applies to their VOLUNTARY Cancel for any Reason protection provided by Princess Cruises itself (and not by the insurance company). You may get 75% or 100% in cruise credits for this protection.

    Pre-Existing Condition is an EXCLUSION to the whole policy. And Princess Travel Plan will not cover any losses caused by or resulting from Pre-Existing Conditions.

    Therefore, in the most generous case, if you get sick and your sickness is deemed to have been as a result of a pre-existing condition, then the best you get can get is a cruise credit.

  • Michael__K

    Looking at travel insurance rates, they don’t follow the same pattern as the car insurance rates you refer to.

    The waivers don’t cost much, and as you noted yourself, getting third-party insurance with pre-existing conditions included is often cheaper than buying the travel vendor’s plan with pre-existing conditions excluded.

    Which calls into some question the premise that everyone’s fares would have to increase.  Maybe fares would increase if the cruise fares themselves are currently being subsidized by especially high profit margins on insurance… and in that case (IMO) it wouldn’t be a bad thing…

  • lorcha

    Regarding “grey area” cases, here is what one policy says about pre-existing conditions:
    s) PRE-EXISTING MEDICAL CONDITION EXCLUSION: 
    The Insurer will not pay for any loss or expense incurred as the result of an Injury, Sickness or other condition of an Insured, Traveling Companion, Business Partner, or Family Member which, within the 180 day period immediately preceding and including the Insured’s coverage effective date: a) first manifested itself, worsened or became acute or had symptoms which would have prompted a reasonable person to seek diagnosis, care or treatment; b) for which care or treatment was given or recommended by a Physician; c) required taking prescription drugs or medicines, unless the condition for which the drugs or medicines are taken remains controlled without any change in the required prescription drugs or medicines. 

    I think where people get tripped up is in part “a”. Say you purchase the policy on 1/1/2012 for travel on 9/1/2012. If you fall ill on 8/1/2012, can’t travel on 9/1, and file a claim, you’re going to need to submit all of your medical records from 7/4/2011-12/31/2011. If your condition first manifested itself during that time, *even if you didn’t realize it at the time*, you are excluded unless you obtained a waiver of preexisting conditions.

    To get a waiver, you need to meet certain conditions:
    PRE-EXISTING MEDICAL CONDITION EXCLUSION WAIVER 
    The Insurer will waive the pre-existing medical condition exclusion up to a maximum of the first $30,000 of Trip Cost per person if the following conditions are met: 1. This plan is purchased within 15 days of making the Initial Trip Payment; 2. The amount of coverage purchased equals all prepaid, non-refundable payments or deposits applicable to the Trip at the time of purchase, and the cost of any subsequent arrangement(s) added to the same Trip are insured within 15 days of the date of payment or deposit for any subsequent Trip arrangement(s); 3. All Insured’s are medically able to travel when plan cost is paid. 

    In other words, this addresses the following issues of adverse selection:
    1. The “Oh no, I’m not going to be able to make my trip! Better buy a policy and file a claim so I can get my money back!” problem. You need to purchase coverage within 15 days of putting down your deposit. Not 6 months later when you’re in a jam.

    2. The “Well, I’m pretty sick, but I think I’ll probably be better next year when the trip starts” problem. You need to be medically cleared to travel when the policy is purchased. 

    I’m not an actuary, but believe me, one has crunched the numbers and determined what provisions are required to limit the insurer’s risk.

  • TonyA_says

    Three vital questions to ask before buying insurance?

    #1 Do you need a WAIVER of pre-existing medical conditions?  Chances are if you, your companion(s), or your family members not traveling with you are sickly or old, the answer is YES.

    #2 Do you need to CANCEL FOR ANY REASON? If you are the type who will change will your mind for whatever reason and might want to cancel a planned trip then consider this added option. If you’re certain you want to take the trip, then you might want to forgo this option since it is expensive and will only usually pay back 50-75% of the cost of the trip.

    #3 What do you want back – cash or credit for another trip? Remember, insurance will only pay for a loss. So if your travel provider provides you with travel credits or vouchers then your loss might be less than what you think they would have been. However, most cruises have stiff cancellation penalties and you can lose your whole fare if you cancel near departure. If you buy travel protection from the cruise line and you don’t want to cruise again, then cruise credits are worthless to you. You might want to go with travel insurance from a separate company that will offer to return your money if you cancel. Do however make sure that your possible reasons for cancelling the cruise or trip is a covered reason for that particular insurance policy (especially the WAIVER in #1).

  • Michael__K

    Why are pre-existing condition waivers so inexpensive then?

  • http://twitter.com/johntbaker John Baker

    Mike … I looked at the verbiage in the policy that I normally buy. If you don’t purchase in time for the preexisting conditions waiver, its basically diagnosed conditions or conditions you should have reasonable know you had … ie you can’t purchase the policy on the way to the doctor because your arm is tingling and your chest is tight and expect them to cover a heart attack.  However, if you purchased the policy before you had any cardiac incidents or symptoms, they would cover you.

    Definately allows some gray into the process when you don’t have the waiver.

  • http://twitter.com/johntbaker John Baker

    @lorcha:disqus I saw this after I posted mine below. Looks like the verbiage from my policy

  • Michael__K

    Looks like you’re quoting a TravelGuard policy.  

    The OP’s probably met TravelGuard’s  adverse selection guidelines (they purchased a Dec cruise in June).  And they probably paid more than they would have paid for a TravelGuard policy(!!).  But they bought a Princess (Berkely Group)  protection plan, which AFAICT doesn’t offer a pre-existing condition waiver.

    Which begs the question: if TravelGuard can afford to sell a pre-existing condition waiver policy for less than the OP’s paid, why can’t Princess do that??

    BTW, I agree that people get tripped by part “a” of the pre-existing exclusion language.  Again, I would hazard to guess that easily ~80% of cases hinge on a subjective interpretation of whether a reasonable person should have sought treatment (e.g. for “weakness” which may have been a clue to a “heart condition”).

  • Noah Rosenthal

    I don’t get all the “no” answers to the poll. If you don’t want travel insurance that exclude preexisting conditions, you don’t have to buy it.

  • lorcha

    I don’t remember whose contract that was. I went to squaremouth and grabbed one at random.

    Regarding cruise “travel protection” plans not offering a preexisting condition waiver, I suspect the answer is that they don’t have to. A decent percentage of people who like to travel by cruise ship are people who don’t like to plan or worry about travel. They want the cruise line to take care of everything: transport them by air to the ship, sail them to destinations, and tell them what to do at each destination via shore excursions. Why shouldn’t this type of traveler also rely on the cruise line’s recommendation on “travel protection”? 

    On the other hand, travel insurance policy issuers need to compete against each other, which forces them to offer better terms. 

    That’s my guess, anyhow. 

  • 46Shasta19

    I don’t understand how anyone could not know that pre-existing conditions are not covered.  Also, I don’t understand how anyone could not use a 75% discount on a cruise!  Thats a wonderful refund.

  • Lindabator

    But Chris specifically asked if insurance policies should exclude pre-ex. 

  • Michael__K


    Why shouldn’t this type of traveler also rely on the cruise line’s recommendation on “travel protection”

    This case points to a reason why they shouldn’t….

    Kudos to Princess for making an exception.

    But maybe eligible customers would be better served if pre-existing condition waivers had to be included unless the customer explicitly opts-out of them.

  • Lindabator

    True – but this sounds like she booked direct – and that’s why she took the cruise line’s insurance.  Too bad – I have clinets who have had these types of conditions, and we opted for the correct coverage – and when someone passed away just a couple of weeks ago, it was great to know they were covered and promptly reimbursed for the loss.

  • TonyA_says

    Since Insurance is regulated by the States, one solution would be the States to agree on a STANDARD cruise insurance policy that can be sold in their state.  They can call it the US Approved Standard Cruise policy. This way people only have to understand that standard.

  • Lindabator

    Not true – any good insurance coverage covers the costs of getting you to the ship in these cases (have had to use for several clients), but covers far more than a cruise line’s insurance.  And from reading this post for so long, I don’t think anyone here has ever suggested using the tour operator or cruise line’s insurance over 3rd party.  It’s always been recommended as just the opposite – and usually for these reasons.

  • Lindabator

    Actually, pre-existing conditions mean when treatment was sought or medications changed rules kick in.  If you have asthma that you have not had to seek new medical treatment, or had your medications changed within the last 180 days, they would not hold the illness against you.  The problem here, was he WAS treated for the illness, and then passed away due the same illness, so the pre-ex rider kicks in.  If they had chosen a coverage with a pre-ex WAIVER, this would not have happened.  So sad – and also glad Princess made an exception for them.

  • Michael__K

    “I don’t think anyone here has ever suggested using the tour operator or cruise line’s insurance over 3rd party”

    —-

    Then you must have missed the following comments on a recent article (and I’m confident I can dig up others if I go back further):

    If you buy trip protection and air travel from the cruise line they can always give you another cruise. If you buy your own insurance and air travel, then you are on your own.

    http://www.elliott.org/blog/is-this-enough-compensation-for-my-canceled-cruise/#comment-523004103

    If you really want travel insurance or protection it is best you call Princess or BerkleyCare, their program administrator since both your cruise and air were purchased together.

    http://www.elliott.org/blog/is-this-enough-compensation-for-my-canceled-cruise/#comment-524721935

  • Lindabator

    nice idea – but you’d still have exclusions, and still have people who don’t bother to check those before booking.  I’m sure you’ve seen that enough here!  :)

  • TonyA_says

    My speculation:

    I don’t understand how anyone could not know that pre-existing conditions are not covered.

    Maybe the agent who sold them the cruise and travel protection did not tell them about the pre-existing condition exclusion.

    I don’t understand how anyone could not use a 75% discount on a cruise!

    Maybe no more reason to cruise if the purpose for the cruise was to entertain the person who died. Besides, maybe they did not want to spend more money after the funeral expenses.

  • TonyA_says

    Exactly! Whoever sold them the cruise and the insurance would (should, could) have probably known they were cruising to cheer up a cancer patient (in remission?). Therefore, there was clearly a need to get a WAIVER for pre-existing conditions. Very lousy and possibly negligent agent (if they knew).

  • http://pulse.yahoo.com/_EUTS4TUFMGQZAZLOWGCYXX7D6E Roger M

    Boy, am I glad I purchased travel insurance from Tripinsurance.com for my cruise. And I purchased it within 15 days of making the initial deposit, so pre-existing conditions are waived. I read all the fine print, and compared all the products side by side. And, no, I didn’t use (or need) a travel agent.

  • scapel

    If I buy my travel insurance at time of booking it covers pre-existing conditions. If I wait and buy it later it does not cover pre-existing conditons.
    They however once didn’t want to pay a $40 claim when my cruise line changed my embarkation point from Japan to Korea because of the Tsunami. I finally got paid, but they were saying the place had to be uninhabital before they would pay. Did anyone see the video of the results and we were suppose to visit that place. They finally paid.

  • TonyA_says

    I have a feeling TravelGuard or Travelex might even be cheaper than the cruise line’s own (stricter) insurance policy. Princess charges 10-12% for their premium policy. That’s pretty high for a short cruise.

  • TonyA_says

    Hey those where my old comments based on entirely different situations. Those folks were not sick. One of them was a gift. I think the other one was to protect against the cruise itself cancelling – like the one in PR. Or it may have been Lindblad’s. So it depends what you are looking for. If getting another cruise is fine w/ you then the cruise’s own travel insurance may be good enough.

  • Michael__K

    Right, @KMiller4816:disqus  was giving general advice,  not specific to sick passengers (except for the last sentence).

    I merely pointed out that other commenters (like yourself) have seen it differently.

    Clearly it’s not accurate that  no one “has ever suggested using the tour operator or cruise line’s insurance over 3rd party.”

  • TonyA_says

     Congratulations, you bought from an agent. :-)

  • AUSSIEtraveller

    we sell travel insurance, but these days, many people go for the cheapest policy they can find online, without realising why its cheap.

    They may read the summary of whats covered but very few read the fine print.

    We say, you only find out how good your insurance is, when you need to make a claim & we only deal with 1 large company, because others have weasilled out of claims.

    CAVEAT EMPTOR !!!

    (ask someone who’s been dealing with these insurance companies for years, not some JOHNNY COME LATELY ONLINE)

  • AUSSIEtraveller

    we sell travel insurance, but these days, many people go for the cheapest policy they can find online, without realising why its cheap.

    They may read the summary of whats covered but very few read the fine print.

    We say, you only find out how good your insurance is, when you need to make a claim & we only deal with 1 large company, because others have weasilled out of claims.

    CAVEAT EMPTOR !!!

    (ask someone who’s been dealing with these insurance companies for years, not some JOHNNY COME LATELY ONLINE)

  • jennj99738

    I am always curious how people who don’t know or understand something as fundamental as a preexisting condition exclusion manage to find Chris’s blog *after* the fact when they’re trying to get help to fix their own mistake but never before.  It’s my own cynicism, I guess.  
    I am glad that Princess made an exception for this case.

  • TonyA_says

    jen, there is a good and bad effect of the internet. One bad effect is those with money (the big suppliers and OTAs) have a bigger megaphone. They have a one size fits all service because that’s the only way you can sell to the masses. I suppose the OP got caught in their web.

    The good effect of the internet is that advocates also get a shot of getting heard, too. So after one gets screwed they google for help and they find Elliott. The problem is they learn AFTER they have already parted away with their money.

    I just hope people do a little bit more research before they plunge and buy that big trip. Buying trip insurance is a bit complex. It took me a while to understand what it can and cannot do for one’s trip. It gets even more complicated if you mix air and cruise and something else. Yes newbies make mistakes but you’ll be surprised even TAs do, too, when we tend to assume a lot and forget to do our homework.

  • Michelle C

    So the family should have read the contract, but I’m sure every single one of us has skipped over something we should have read before signing. On a personal note I could give a rats-ass what the contract says.  Almost everything is pre-exsisting.  I wouldn’t be surprised if a car accident is denied because owning a car is pre-exsisting.   He was given the go ahead by his doctors.  That should be good enough.   I can see why pregnancy would be excluded, and mental anguish claims would be denied but if the MD gives you clearance when you have a chronic illness, then that should be proof enough that death or disability was not immanent.  I’m very glad this family got their refund.

  • Michael__K

    Except that this a case where the vendor’s ***more expensive***  policy is clearly inferior to cheaper policies available from third parties…

  • AUSSIEtraveller

    Michael_K

    & you know this because ?

  • Michael__K

    Don’t take my word for it.

    Princess’s insurance coverage terms and pricing is publicly available:
    http://www.princess.com/downloads/pdf/faq_answer_legal/Princess_Vacation_Protection.pdf 

    You can quote comparable policies from other insurers (like TravelGuard) online…

    (Also, other commenters have noted the interesting direction of the price discrepancy).

  • Martin Pietrzak

    Unfortunately insurance policies are written by lawyers and actuaries that have the provider’s interest in mind and more importantly to reduce the amounts it need to payout to stay profitable. As long as insurance companies are for profit identities, these cases will be quite prevalent.  It is a necessary evil in most cases and cost of feeling somewhat secure while on the road…sad to read but we had a similar experience as well…

  • http://twitter.com/eeinsf ee sf

    ”
    Offering a 75 percent credit was a nice gesture.”

    The 75 percent discount on a future cruise is part of the policy.  It was not a nice gesture.

  • jackfile

    Getting travel cover is vital. The particular most severe can occur to be able to those who belong to the particular capture regarding a lot of complacency. Tourists are already patients regarding robbery, offense, incidents, and also health-related emergencies. With out insurance policy they are often prone….http://cityplaceauction.com/

← Older Comments