Michael DOLLARS AND SENSE ‘IF YOU have out-of-country holidays coming up, make sure your travel medical insurance won’t let you down. ; Regular readers will remember a column I wrote about a local woman who needed emergency surgery in Europe.’ She was holidaying with her partner in Spain when she devel- Oped a serious medical problem. The hospital required a $2,500 deposit before allowing an operation gio go ahead and all bills — the total “came to about $10,000 — had to be paid before the woman left the hos- pital. Every tourist's nightmare situ- ation. “Thad taken out medical insur- ance before we left on the trip,” said the woman, who works in hospital administration here. And while the policy promised that emergency advances could be made, when the emergency situation arose, the couple were not able to get what they needed. “We had traveller's cheques and credit cards, but nol enough money to cover the medical and hospital bills,” she continued. “We had to turn to friends at home to send us money.” Even after the woman returned and filed a claim, it was several months before anything was paid. The total claim came to $15,000, including miscellaneous expenses for transportation, accommodation, etc. “But all those ‘extras’ the policy promises — or you think should be covered — don't always material- ize,” the woman said. “For example, while the insurance company did reimburse us for the medical expenses, they didn’t pay our inter- est costs on the loan we had to take out while waiting for the claim to be settled. “My companion’s meal costs were not covered while he waited for me to be released from hospital, although his hotel bills were. “The only flights we could get home required an overnight stay in Amsterdam; our hotel and meal expenses there were not reimbursed. And of course the medical plan doesn’t pay the additional costs you incur when you change your travel plans even though it’s because of a health problem. “Also, all the Spanish receipts had to be translated, at a cost the insurance company wouldn’t pay.” The woman said the claim process “was bureaucratic with very tittle communication. There were lots of forms to complete and we USINESS Prepare for medical expenses when you travel followed up many times without acknowledgement.” She urged travellers to: @ Make sure you have travel med- ical insurance. If you have an extended health plan at work, find out whether this provides adequate out-of-province coverage. Some home policies offer travel medical insurance as an add-on you can buy. 88 Read the policy details carefully; check what is — and isn't — cov- ered, #@ Don’t count on any promises of an emergency advance. @@ Have a backup financial arrange- ment in place to provide money if necessary — perhups a ietter of credit, plenty of traveller's cheques, a high limit on your credit card(s), a friend or family member who could send you money or perhaps make a deposit to your credit card account if your limit isn't high enough. Have an emergency fund to carry you for several months until the insurance company does reimburse you. @ Establish a contact at the insur- ance company before you leave. Ask about the procedures for getting help and filing a claim. Write down this information, including the indi- vidual’s name and direct phone number. @ Consider getting out trip cancel- jation insurance. Out-of-province medical insurance won't pay any additional travel costs you incur to return home if you miss your regu- lar flight because of illness. “it’s also helpful to have a trust- ed friend or relative back home who can help you out if you are unfortu- nate enough to be hospitalized in a foreign country,” she added. “We really appreciated having an office Changes to alimony tax rules AS MUCH as ex-husbands and ex- wives lead separate lives after a marriage breaks down, some ties still bind.them together. By Harold Chmara Contributing Writer For example, the higher-income Spouse often agrees to pay mainte- Nance or support for an ex-spouse and/or their children for a period of time after the divorce. Existing tax rules generally allow the paying spouse to deduct the alimony or support payments for income tax purposes while the recipient reports the payments as taxable income on his or her tax return. Recently, there have been calls for changes to this system. In Ontario, for example, the Fair Tax Commission argues that a woman should not be taxed on maintenance or support payments. Such calls for change, however, puzzie chartered accountants and tax experts because the existing rules are designed to give divorcing couples a significant tax break. Since the ex-spouse who pays support is usually the higher income earner, his/her income is generally taxed at a higher rate than that of the recipient. Take the example of a “typical” couple. The ex-husband earns $36,000 and pays support of $6,000. The ex-wife earns $14,000. The current rules mean that they pay a total of about $10,220 in income tax, if they live in Ontario. If the system is changed so the husband gets no tax deduction for. the support payments and the wife No down payment. And for your next two wishes... 983 pera tronth $988 a month with no awe pay tent. receives the payments tax-free, the total tax they pay increases to about $11,080 — or $850 more. The higher the income level, the greater the difference between tax now paid, and the tax that would be payable if the rules were changed. If the current rules were changed and support payments were non-tax- able, it is obvious that the ex-wife would save tax -- about $1,620 in our example, But in such a case, the ex-husband would either negotiate lower support payments or take legal action to reduce the amount of his current payments. This is because support agreements are worked out on an after-tax basis. Moneycare is general financial advice by Canada's chartered accountants, Harold Chmara is the director of planning and tax at the Hudson's Bay Company. Uniil July St, the Jaguar XU6 you've wished for can be yours for an unparalleted This time limited leasing offer inchides the F tracserthe : . . [sedate | waique Club Jaguar package of no-cost echeduled maintenanes, roudsice assistance und ad year, 80.000 kin warcanty. [t's the ultimate in wish fulfillment. You could pinch yourself to see if you're dreaming or merely see your nearest Jaguar dealer for details, “PALIN J6, on approved credit. No money down, 2f-manth teem, Total pay Lirence and tases extra, Dealer may lease far le: JAGUAR eN pnts $23,012 MCL Motor Cars (1992) Inc. where messages could be left or relayed, and where faxes could be sent. While most people are more than anxious to help in an emer- gency, it’s important to know ahead of time whom you'll call.” If you do have medical expenses while you are away, find out exactly what receipts and other documenta- tion you need. It's much easier to collect the ( JAVLORMOTIVE” .° ARA, - SERVICE LYD. B.C.A.A necessary paperwork at the time than to try to get missing forms after you return home. Mike Grenby is a North Shore- based columnist and independent financial adviser who works with individuals; he will answer your questions in this coltonn as space allows — write to him clo 2444 Haywood Ave,, West Vancouver, B.C. V7V 1Y1. 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