Take Care When You're Over There - Brief Article

Kiplinger's Personal Finance Magazine, August, 2000 by Kimberly Lankford

Q&A | A junior year abroad requires an education in HEALTH INSURANCE coverage.

My daughter will be studying in Geneva next semester. Will our health insurance cover her over them, or do we need to get a separate policy? --B.M., Elmwood Park, N.J.

Your insurance will probably leave some gaps. Even in the U.S., most HMOs don't pay for anything but emergency care when you're out of the area, and preferred-provider plans pay limited out-of-network benefits. Foreign travel creates additional risks. Most policies will not cover transportation costs if a patient must be moved to another city or returned to the U.S.

Recognizing these realities, many study-abroad programs automatically include foreign health insurance. For example, the Council on International Educational Exchange's overseas study programs include an insurance plan that covers up to $50,000 in doctor's services and hospital expenses, and up to $10,000 for emergency medical evacuation. Students in CIEE's programs also get an International Student Identity Card (the $20 cost is part of its fees), which includes up to $25,000 in emergency medical transportation and $3,000 in accident medical-expense benefits.

If your daughter's program doesn't include such coverage, it's probably worthwhile to buy a policy on your own. Roy Milan of Champion Insurance Advantage, a health insurance brokerage that specializes in foreign travel, generally recommends Reliance's study-abroad policy, which costs $28 per month for students under age 25. It covers up to $500,000 in medical expenses and up to $100,000 for evacuation.

One final idea: Talk with officials at your daughter's college about their experience with health care where she's going. Colleges usually send students to the same areas repeatedly and know how the local hospitals and doctors work.

Credit cards With this card, the term "on the house" takes on a whole new meaning

It sounds like a dream come true: a tax-advantaged credit card. That's how Washington Mutual Bank, based in Seattle, is promoting its On the House Visa. That's not "on the house" as in "free." It means that the debt you take on with this plastic is backed by your home. The interest rate is tied to the prime rate and currently ranges between 8.5% and about 14%-about half the rate on a typical credit card. And because this card is secured by your home, the interest may be tax-deductible.

The downside: Tax deduction or no, the idea of putting your home at risk every time you whip out your card gives many consumers heartburn. Washington Mutual thoughtfully puts a large picture of a house on the card to remind you of what you're doing. --JOAN GOLDWASSER

Low-interest premium cards Best if you carry a balance

                             RECENT   CASH-ADVANCE   ANNUAL
ISSUER                       RATE     RATE/FEE(c)    FEE

Pulaski Bank & Trust (G)      8.75%    8.75%/none    $50
Simmons First National (P)    9.95     9.95/none      50
USAA Savings Bank (G, P)     10.5     10.5/none       45

                             LATE/        TELEPHONE
ISSUER                       OVER LIMIT   NUMBER

Pulaski Bank & Trust (G)     $20/$20      800-980-2265
Simmons First National (P)    20/none     800-636-5151
USAA Savings Bank (G, P)      20/none     800-922-9092

No-fee premium cards Best if you usually pay the balance each month

                      RECENT    CASE-ADVANCE   GRACE     LATE/
ISSUER                RATE(*)   RATE-FEE(c)    PERIOD    OVER LIMIT

Capital One (P)        9.9%      19.8%/2.5%    25 days   $29/$29
Wachovia (G)          11.9        19.99/4      20 days    29/29
AFBA Industrial (P)   12.4        12.4/2       25 days    15/none

                        TELEPHONE
ISSUER                   NUMBERS

Capital One (P)       800-822-3397
Wachovia (G)          800-842-3262
AFBA Industrial (P)   800-776-2265

Rebate cards Best of the retail cards

                      RECENT          CASH-ADVANCE
ISSUER                RATE            RATE/FEE(c)

Kroger Visa           17.47%-21.47%   17.47%-21.47%/3%
Macy's Premier Visa      21.65           21.65/3
Bloomingdale's Visa      19.7            19.65/3

                      ANNUAL           REBATE
ISSUER                FEE              STORE/OTHER

Kroger Visa           none([dagger])   2%/1%([double dagger])
Macy's Premier Visa   none             3/1
Bloomingdale's Visa   none             3/1(#)

                      TELEPHONE
ISSUER                NUMBER

Kroger Visa           877-257-6437
Macy's Premier Visa   800-922-7028
Bloomingdale's Visa   800-670-9840

(*) As of June 9; rates are adjustable, often tied to the prime rate,

(c) Cash advances often have no grace period: additional fees may be charged. (G) gold card (P) platinum card

([dagger]) if used three times a year

([double dagger]) expires after three years

(#) to earn rewards, must spend $1,000 annually

SOURCE FOR LOAN RATES AND CREDIT CARDS: Bankrate.com, a division of Ilife.com, N. Palm Beach, Fla.; 800-327-7717, ext. 274