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A Comprehensive Guide To Travel Insurance Policy
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Carefully planning your trip and ready to book your next vacation ticket, but have you considered buying a comprehensive travel insurance? Ensure you do! A travel insurance policy protects you from financial losses that you may experience because of some unforeseen circumstances before and during your trip.
Oftentimes, travelers overlook the travel insurance investment until the unexpected hits them. Simply put, a travel insurance policy is created to give travelers peace of mind and financial protection in case of any travel risks. Some travelers prefer not to buy it because they feel it is costly and also a waste of money.
However, that’s not the case as a travel insurance policy doesn’t have to be expensive. Purchasing it gives you an additional form of protection and security. Travel insurance is not only valuable for big-ticket trips like luxury cruises, safaris, or multi-city international vacations, but it’s also helpful when you’re staying closer to home.
We recommend that you ask yourself what you could stand to lose if you had to cancel last minute or your luggage got missing. Your answers will help you decide if travel insurance is right for you or not! However, if you are interested in purchasing travel insurance for the first time, it can be a bit confusing.
In this article, we’ll take you through what a travel insurance policy entails, why you should purchase one, and how much it costs. So let’s dive in!
What Is Travel Insurance?
Travel insurance is a form of insurance that you purchase to protect yourself from certain risks and losses that you may incur while traveling. Though it can range from a canceled flight and delayed luggage to experiencing a medical emergency in a remote area.
If any of these covered losses occur while traveling, you can submit a claim to your travel insurance company and you’ll be reimbursed in monetary value. However, in some cases like having an authorized emergency medical evacuation for an ailment/injury, your travel insurance may pay your expenses in advance.
Why Should I Purchase Travel Insurance?
- The expenses of traveling are a lot and most people can’t afford to lose the money they’ve spent if forced to cancel a trip at the last minute. Therefore, purchasing travel insurance will help you get reimbursed.
- Another reason to purchase travel insurance is that, when any unforeseen situation arises, your travel insurance can help sort it out. Furthermore, situations such as lost bags, delayed trains, and canceled flights usually happen all the time. Travel insurance can reimburse you for any loss that’s covered in their policy and make sure you get where to your destination.
- Undoubtedly, emergencies abroad are quite expensive and you may not be covered by domestic health insurance policies in other countries. As a traveler abroad, if you suffer a serious injury/illness, you may end up with exorbitant bills if you’ll be paying out of your pocket.
The Cost Of Travel Insurance
The total costs for the various available travel insurance policies are based on two main factors. These factors include your prepaid trip costs and your age. That’s it! Are you wondering whether your medical history, your destination, or your claims history will be considered? Nope! The total cost of your travel insurance won’t be affected by any of those.
What Does Travel Insurance Cover?
Travel insurance may differ based on various factors. However, the policy usually covers three essential things. Listed below are the three essential coverage of travel insurance. Scroll down!
- Protection for your financial expenses.
- Protection for your well-being.
- Protection for your personal belongings.
When you are ready to purchase a travel insurance policy, we advise that you look out for these benefits.
1. Trip Cancellation Coverage
Generally, you’ll be compensated by your travel insurance for prepaid, non-refundable trip deposits if the trip was canceled for a covered reason. These expenses may include your airline tickets, hotel rooms, rental cars, tours, as well as cruises. For instance, you can cancel a trip for the following acceptable reasons illness, injury, or death of the traveler.
Also, for a close family member or a traveling companion, civil unrest, serious family emergency, or unexpected jury duty. You can also cancel a trip if your travel supplier stops offering services for over 20 hours because of a natural disaster or a strike. If you cannot access your home or travel destination or if you/your travel partner got fired after buying your policy.
Meanwhile, you cannot just cancel a trip for no particular reason and expect compensation because you purchased travel insurance. Let’s check out this example if you quarreled with your friend and decided not to travel with her. Also, if you decide not to take a flight to Hawaii because it’s too far, these are not covered reasons.
2. Trip Delay Coverage
Let’s say you experience an interruption in your travel plans, your travel insurance policy is capable of providing some financial relief for you. Moreover, travel delay coverage usually offers compensation if you’re delayed due to one of the policy’s covered reasons.
Your policy can compensate you for expenses like food, lodging, and local transportation incurred while you were delayed. Additionally, these covered reasons include severe weather, airline maintenance, or civil unrest.
3. Trip Interruption Coverage
In case you have to cut short your trip because of an illness/injury that you experienced during your trip. Or, if you have a family emergency you must attend to back home, your travel insurance can compensate for your non-refundable expenses forfeited.
Furthermore, your policy may also cover the cost of a one-way economy airline ticket home. Though not all reasons are covered. For instance, if your beach vacation is a washout or you miss your new puppy, you won’t get compensation for the trip interruption.
4. Medical Expenses And Emergency-Evacuation Benefits
If your trip is within the US, your health insurance will cover any illness/injury you may sustain on the trip. However, if your trip is outside the US, then your US-based health insurance may not cover you. Medicare is not acceptable overseas, therefore you must sign up for additional coverage.
Obtaining travel insurance that has superb medical coverage and emergency transportation when traveling internationally is very important. Peradventure, if you fall sick or injured on your trip, these benefits can cover your medical costs.
5. Baggage Loss
In a case where your baggage is nowhere to be found, your travel insurance policy could be a lifesaver. Meanwhile, if your travel insurance includes baggage benefits, then your insurance company will compensate you. This could be up to the maximum stated in the Confirmation of Coverage, for covered loss, theft, or damage to your baggage and personal items.
For every plan, there are specific coverage limits that hold each benefit, which are outlined in the plan documents. Furthermore, your travel insurance policy does not cover all items. For instance, most policies do not cover very expensive jewelry, art, and antique items. Also, cash will never be compensated for.
If you don’t want to lose irreplaceable items, ensure you leave them at home and do not bring them on vacation. Additionally, ensure you read your policy carefully to see what is covered.
Conclusion
Travel insurance policy is not just an optional expense, you must see it as a very important investment. Which helps to safeguard your journey, and your finances, and provides you peace of mind. Go out there, travel, and explore, but do not forget your travel insurance!
