Ellen PhillipsTax Tip
Five more days to go, and I hope Consumer Watch readers aren’t among the millions who are still frantically gathering their taxes to postmark by April 15th to Uncle Sam. I had sworn ours would be completed before today’s date (my birthday and I won’t tell how old), and so they were. One area I couldn’t claim (and wouldn’t even want to) are expenses related to pregnancy. However, for those of you with applicable outlays — If you recently had a baby, for example — you and your spouse probably took at least one pregnancy test, enrolled in a series of childbirth classes, and invested in a breast pump and other birthing-related materials. These qualify as medical expenses, which can be deducted from your taxable income if they amount to more than 10 percent of your adjusted gross income. So here’s to eight more months of smart tracking oft-uncommon expenditures; 2016 tax preps will be here before we know it.
My family is planning an extravagant vacation in early summer. All arrangements are made but, with such expense, I feel we need travel insurance. What should I look for in travel plans? – Thomas Traveler
Dear Mr. Traveler: You're wise to put all your ducks in a row, especially if you're spending a mint on your "extravagant" trip. Years ago, I found myself stranded with no outside help and promised I'd never allow that situation to happen again. And I haven't. Just don't make the same mistakes many folks do - assuming travel insurance covers all eventualities; it doesn't. Three different types need a close look to decide if you need one, two or all three. (I place myself in the latter category when taking a big trip.)
1. Trip cancellation reimburses non-refundable payments (such as airfare that's usually much cheaper than refundable tickets) if unforeseen problems occur. Illness, job loss and even acts of terror are covered under this type. Let's say three days before your flight or cruise you get a nasty bronchial infection. You're sick as a dog but have already paid for booking fees, airline fares, hotels, rental car deposits - whatever. Trip cancellation allows the traveler to recoup what he has already spent.
2. Trip interruption repays any remaining nonrefundable payments if you begin a trip but can't complete it because of sickness, death or circumstances beyond your control. Let's assume you and your family are vacationing in the Netherland Antilles and a tropical storm or, worse, a hurricane is bearing down in the next few days of your stay. Trip interruption covers the family for any unused prepaid costs as well as transportation back to your original destination.
3. Emergency medical transportation transports you and your family to a qualified medical facility or to your hospital of choice if you suffer serious illness or injury during the trip. The last time my husband and I traveled without an emergency medical insurance policy, we were in St. Maarten, and kidney stones hit Hubby hard. We went to a local doctor, who prescribed medication that almost put him in renal failure. He was too sick to change to an earlier flight, and we feared if we waited, he might die. It was a horrific quandary. Long story short, now if we travel a great distance, the first item on my list is emergency medical transportation. Had we purchased a policy before the St. Maarten vacation, a med flight, equipped with medical personnel to care for my husband, would have been available and his suffering would have been greatly reduced.
Most interruption and cancellation policies also cover lost, delayed or damaged luggage (although a savvy consumer has the knowledge for financial recovery from the airline). Additionally, it covers the costs of damage to or theft of rented vehicles (which your regular auto insurance also covers). And, perhaps more valuable to those on Medicare, policies also cover emergency treatments while traveling. Medicare doesn't cover payments outside the country nor do some U.S. health policies. (The travel insurance we purchased prior to our trip covered that particular physician, but I doubt it would have paid for my husband's funeral had we not gotten home in time.)
Many reputable companies exclusively sell travel insurance. When checking on the best value for your buck, be sure to include all items for your needs. I cover all bases and purchase regular travel insurance but, also emergency medical transportation. The combination may cost a tad more, but if anything untoward occurs, the protection is invaluable.
Contact Ellen Phillips at consumerwatch@timesfreepress.com.