What is travel insurance?Many different people loosely understand travel insurance to mean many different things. However, travel insurance primarily falls into two broad categories:
- Package plan that includes trip cancellation insurance.
- Package plan that does not include trip cancellation insurance but primarily focuses on travel medical insurance .
What does trip cancellation insurance include?Trip cancellation insurance is a package policy that includes various items such as:
- Trip Cancellation:
In case you need to cancel your trip for valid reasons prior to your departure, it will reimburse you your pre paid non-refundable portion of your trip cost.
If you have purchased the travel insurance sufficiently in advance of your trip and very close to your initial trip deposit, many travel insurance plans, most at higher premium, will let you upgrade to cancel for any reason.
In case you need to return back home from your trip early due to covered reasons such as your house is on fire or flooded or your close relative passed away, it will help you pay for additional expenses to make arrangements to return home early.
If you were to get sick or injured while you are on trip, travel insurance will pay for the expenses. Your domestic health insurance you have may not cover you outside your home country, or may provide limited coverage or it
may be subject to higher deductible and higher coinsurance and higher out of pocket maximum.
If you were to get sick or injured while on your trip, it would transport you to the nearest medical facility where adequate medical care can be given. Once you are stable enough to travel back home, it may also pay for you to return home under the 'Repatriation' benefit.
God forbid, if you were to pass away while on your trip, this benefit would pay to send your remains back home.
Various policies may cover things such as loss of checked luggage, baggage delay up to various amounts. Some policies may just pay for the additional expenses you incur due to the fact that you lost your luggage and pay for reimbursement of those items (up to their stated maximum amount) and ask you to collect the payment from the travel provider (such as airline) because they lost your luggage.
This coverage would apply in case you were to pass away in an accident or were to lose one or two limbs (dismemberment) in an accident.
There may be other benefits such as travel delay, assistance services, emergency cash transfer, concierge services, ID theft protection, rental car coverage, flight accident etc. They may vary among various policies.
What is travel medical insurance?