It is a pleasure to have you here once again! This is yet another article created to educate you on the right way to secure your future with insurance.
However, this article is based on Travel insurance.
On this writeup, I'll be speaking on the basics of Travel insurance. This includes;
• What is travel insurance?
• Types of travel insurance
• Uses of travel insurance
• What does travel insurance cover?
• What travel insurance might not cover
• What travel insurance plan should you get?
Let's begin.
WHAT IS TRAVEL INSURANCE?
Travel insurance is a type of insurance policy put in place to provide coverage for the protection against financial losses and risks that could happen while traveling.
These mentioned risks range from minor travel inconveniences including delayed luggages or missed airline connections to bigger travel issues such as damaged goods, injuries or major illnesses.
TYPES OF TRAVEL INSURANCE
Although there might be more available forms of travel insurance depending on the country you are in, these are the basic types of travel insurance known.
- Domestic travel insurance
- International travel insurance
- Medical travel insurance
USES OF TRAVEL INSURANCE
As i said before, travel insurance is a coverage put in place for protection against financial losses that could take place during travelling.
So, this insurance policy is used to protect one's self from travel damages and inconveniences.
WHAT DOES TRAVEL INSURANCE COVER?
Well, depending on the coverage a person chooses, travel insurance can cover a whole lot of possible travel losses and damages.
The broad list of the possible fallouts travel insurance can cover is as follows;
- Loss of Luggage: Travel insurance can help cover the expenses incurred due to the loss or robbery of luggage.
This is very beneficial and useful when an airline loses a person's bags, because it can be very difficult to get the airline management to pay for lost luggage.
The Department Of Transportation (DOT) requires airlines to compensate boarders with up to $3,300 for lost luggage in the United States.
In other top foreign countries, the fixed maximum amount is $1,750.
However, in order to receive these amounts, passengers must be able to provide receipts that prove the value of their lost luggage and their contents. Some airlines also require the claim to be filed within 21 days from the day of the loss of the luggage.
The Department Of Transportation (DOT) also doesn't define when luggage is officially lost, to make matters worse.(This as opposed to just 'delayed')
In most top countries, a luggage is only considered lost after 21 whole days. And for delayed bags, the DOT only requires the airlines to provide the victims with sufficient funds to buy clothes, medicine, toiletries and other necessities.
But with the right travel insurance plan, a person doesn't need to go through all these. Your insurance plan is already giving you a cover for any missing/lost luggage.
- Sickness or Injury: Most health insurance plans do not provide full coverage in foreign countries.
Some do not even provide coverage at all.
But with travel insurance, you can get protection from medical expenses abroad that your health insurance plan does not cover, incase you fall sick.
In addition to your everyday health insurance, travel insurance works and can provide coverage for your medical expenses incase you get injured or sick during or before your vacation.
- Trip Cancellations in the last minute: Travel insurance can provide coverage for expenses that arise due to last-minute trip cancellations.
In the event of a cancellation, most cruise lines, hotels and resorts will not give you a full refund.
For example, if a trip or booking is cancelled two weeks or more to the day of checking in, most resorts will likely at least charge a cancellation fee.
Most times, many cruise lines might give you only a refund of 25%, or better still give you a partial credit on another cruise.
But if the cancellation is made within two weeks of the trip, most resorts won't even give you any refund at all.
We all know unforeseen circumstances take place, so with travel insurance, you can be covered in this scenario.
- Coverage beyond credit card: Travel insurance can provide coverage beyond your credit card. Some credit cards provide limited coverage, with restrictions and limits for interruptions and cancellations annually(that is if they offer it)
However, only few credit cards offer coverage for medical expenses, most expensive travel risks and emergency leaves, all of which travel insurance covers.
WHAT TRAVEL INSURANCE MIGHT NOT COVER
It is a general knowledge that travel insurance is a very beneficial type of insurance policy.
However, while there are a thousand and one reasons why you should get travel insurance(Not speaking literally), it is important to note that certain things may not be covered under the insurance plan.
If you have a preexisting insurance plan, look for a plan that provides a preexisting plan waiver.
You should also check into what coverage a plan provides if you wish to cancel a trip to an area with political unrest due to the problems in that area.
Good travel insurance plans also cover some incidences of tour operator defaults due to funds issues. You should look into how that's being handled before booking your trip.
WHAT TRAVEL INSURANCE PLAN SHOULD YOU GET?
Well, before thinking about looking into travel insurance, there are a list of factors you personally should consider.
You should look at the possible reasons that could make you want to cancel the trip.
Part of it are; Are there acts of war in the country you intend to visit? Is a trip delay because of weather going to change your vacation dramatically? Is it possible you will need to take a work-related trip instead or your school year will be extended?
All these above are valid reasons for needing to cancel a trip or wanting insurance you should think over. However, not all travel insurance covers these terms.
Carefully scrutinise the travel insurance plans below. You might find your desired plan.
- Comprehensive travel insurance: This policy covers delays or cancellation due to lost luggage, sickness or death and some emergency medical expenses.
If you're looking to know exactly what this plan covers, you should read the fine print.
- Cancel for any reason insurance: With this type of coverage and insurance plan, when you need to cancel a trip because you have an urgent issue that came up, you can go ahead. The travel insurance company doesn't usually need a reason.
Their only requirement is you need to cancel the trip within the specific time frame, which is commonly at least 48 to 72 hours before you leave.
On this plan, you get a percentage of your prepaid, non-refundable trip costs back at around 70% without having to give a single reason to the travel insurance company.
You can also get this insurance policy as a standalone policy, or as a rider coupled with a comprehensive policy.
