Have you purchased a travel insurance plan before?
Would you like to know how it works and its benefits?
Firstly, let’s get to know what travel insurance is: Travel insurance is a plan that protects you from some unforeseen risk and loss that might occur while on a trip. Most travelers spend a lot of time and effort planning the perfect vacations, but they often overlook the importance of getting a good travel insurance policy. Travelers are more vulnerable to illnesses and accidents when they are traveling in a strange land, and there is no sure way to prevent unfortunate incidents from taking place.
Travel insurance cannot stop or avert some misfortune but offers consolation.
Travel insurance provides you with indemnification for
TRIP CANCELLATION OR INTERRUPTION: This is the Number 1 concern with most travelers.
Plane tickets, cruise fare, tour packages, hotel rooms, charter fishing boats, golf greens fees.
You invest money when planning a trip. If these expenses are pre-paid and non-refundable, you risk losing it if something goes wrong.
Travel insurance covers expenses if you need to cancel your trip for a covered reason
Trip Cancellation Coverage reimburses you for pre-paid, non-refundable expenses if you need to cancel your trip before you depart.
Insurance companies provide a list of covered reasons for trip cancellation, an overview of typical covered reasons is below.
Covered reasons to cancel your trip
Sickness, injury, or death of you, a family member, or a traveling companion
Hurricane damages your destination or cancels your flight
Laid off from work or required to work
Terrorist incident in your destination city
Bankruptcy of your travel supplier
Called for jury duty
The most common reason is the first one…someone getting sick or a family member passing away.
Cancel for Any Reason (CFAR) coverage will allow you to call off your trip for any reason, as long as you meet the plan criteria.
Trip Interruption Coverage is similar to cancellation coverage, but covers you while you are on your trip for the same list of covered reasons.
If something happens and you are required to return home, insurance will reimburse you for the lost portion of your trip…as well as any additional expenses for the last-minute flight home.
THEFT, LOST BAGS, DELAYED BAGS, DELAYED FLIGHTS
These coverage are for the “smaller things” that are nice to have.
Travel insurance covers baggage and delays
Baggage Coverage can reimburse you for your personal belongings if your luggage is lost, stolen or damaged.
Baggage Delay Coverage provides money to buy essential items until your delayed bags arrive, such as a toiletry kit, a swimsuit, or another change of clothes.
Travel Delay Coverage provides reimbursement for additional expenses if your flight is delayed, such as an extra night in a hotel or a meal at a restaurant.
MEDICAL EMERGENCIES ABROAD
This is crucial, and often overlooked.
Most people think they are covered for medical emergencies if they already have existing health care insurance. Within the United States, that will be true.
Outside the U.S., however, is a big IF. Most do not provide coverage, and Medicare never covers you abroad.
Would you feel comfortable having a family member risk inadequate medical care in a foreign country?
For cruises, your health insurance from home may not cover you if you’re traveling on a foreign-flagged ship (which includes most cruise ships).
Travel insurance covers emergency medical expenses
Medical Expense Coverage will cover you for accidents and emergency medical and dental care when you travel abroad.
Even if you are covered for basic emergency care overseas (again, a big IF), your current health insurance provider will almost certainly NOT pay to evacuate you and repatriate you back to the U.S.
HOW IT WORKS
Travel insurance can be purchased from Travel Agents or directly from Insurance Company.
To be able to access the indemnification, you will have to file your claims, if they are genuine and submit to the right department of the insurance company with Proof.