Four Things About Travel Insurance You Should Know

Four Things About Travel Insurance You Should Know

If you are planning a short get-away to the sun, a ski holiday to the Alps, a cruise or adventure safari, you should make sure that you get travel insurance. We have compiled 5 things you should know about travel insurance:

1. What does it usually cover?

Travel insurance coverage varies from insurer to insurer, but there are two major types:

• Travel Medical & Evacuation Insurance: This covers the medical emergency expenses while you are on your trip
• Trip Cancellation & Interruption: This vacation insurance is probably the most common type of travel insurance policy sold in North America. It covers the non-refuntable trip costs if you can’t travel due to unforeseen circumstances such as illness or financial default of the travel carrier. It also covers you if you become sick during your trip and have to return home.
• Flight Insurance: Covers Accidental Death & Dismemberment while you are traveling on the commercial aircraft.
• Trip Delay: Provides a nominal reimbursement for travel delays such as plane departure being postponed.
• Baggage Insurance: Provides reimbursement for lost or stolen coverage that is usually part of a vacation insurance plan.
• Assistance: Most insurers provide a 24 hour hotline for help with medical care, transportation and accommodation needs, notification of family and friends in case of emergency.

Note: The policies via TFG Global Insurance Solutions Ltd. and its related web sites offer are not available to citizens currently residing in the USA.

The above plans are usually sold as single trip plans. But the vacation insurance and the travel medical and evacuation plans are also sold as annual multi-trip insurance plans that cover you throughout the year up to 1 month per trip.

2. How much does it cost?

The cost of annual travel insurance policies is dependent on one’s age, trip length, trip cost, the plan you want and coverage limits. Trip cancellation and interruption plans on a per trip basis are typically based on the cost of your trip, your age and amount of coverage you want. Most vacation insurance plans are between 4% and 8% of total trip price. 

Travel medical and evacuation plans are quite inexpensive, especially if you are young.

3. Won’t my domestic insurance plan cover me?

It is important to know what coverage you may have through your home or health insurance, or on your credit card. However, only travel insurance provides trip cancellation/trip interruption coverage, protecting your financial investment. And not all health insurance plans will provide full coverage when you travel internationally or outside of a designated network area. (For example, Medicare does not cover health care expenses outside of the United States.) Medical evacuation coverage is rarely covered in most standard health insurance policies.

4. Why should I buy a travel insurance plan?

Here are six reasons to buy travel insurance:

• To protect your personal items while traveling
• To protect your financial investment in your trip
• To protect your health and well-being.
• To cover the high medical costs associated with getting sick or injured while traveling abroad that may not be covered by your domestic health plan.
• To cover the cost of being evacuated to a medical center of excellence or back home.
• Peace of mind

Travel insurance is a great value for travelers who are concerned about: their trip being cancelled, delayed or interrupted for reasons outside their control; urgent access to medical care while abroad, medical evacuation and payments for those services; and protection of personal baggage.