Life insurance, health insurance, and car insurance, you might have heard about them often, don’t you? However, have you ever purchased or at least, consider to purchase travel insurance? Well, maybe only a small number of people said yes to this question. Those who concern about getting their conditions during a trip abroad covered by insurance are still only a few. Whereas, it is very important matter because if you get sick or injured abroad, the medical cost will be unexpectedly more expensive. So, you need to learn about what is travel insurance, why important, and how you can choose the best one for you. Check out the details below!
What is Travel Insurance?
Travel insurance is insurance package plans that cover travelers who are leaving their home country to go on a trip abroad. This guarantee primarily referred to 2 different insurance package plan, including trip cancellation insurance and travel medical insurance. Trip cancellation insurance usually has been including medical coverage, but some insurance companies that offer only travel medical insurance typically don’t cover for trip cancellation in the package. However, good travel insurance usually should cover five following basic coverages, including:
- Cancelling trip booking
The highest concern of most travelers is getting their trip canceled due to unavoidable situations, and they can’t get their booking cost back. For example, plane tickets, hotel rooms, tour packages, cruise fare, and many more others. The worst thing is if those expenses are pre-paid and non-refundable. The chance you get the money back is almost zero. Under travel insurance, you can use trip cancellation coverage to reimburse for those expenses if suddenly you need to cancel your trip schedule before departing.
However, travel insurance company will only cover due to several reasons, including:
- Injury or sickness (this is the most common reason)
- Death of you, a family member, or traveling companion
- Hurricane or other natural disasters that cancel your flight or damage the destinations
- A terrorist or other similar incident happened in the destination
- Required to go back to work or laid off from work
- Called for jury duty
- Travel supplier or tour company get bankrupt
- And, many other common situations that cause cancellation
There is also “trip interruption coverage” that offer better coverage than cancellation coverage. Trip interruption coverage offers those situations while you are in the middle of the trip. If you suddenly need to return to your home country, this insurance coverage will help you to reimburse the lost portion of your trip and any additional expenses for a last-minute flight back home.
- Medical Emergencies
Most of the people overlook medical emergencies for thinking it already covered by their existing healthcare insurance. However, some of them didn’t cover for medical emergencies abroad. So, you need to reconfirm with your health insurance beforehand. The worst thing happened during your trip is when you, your travel companion, or a family member get sick or injured that need medical emergency in a foreign country and your remaining travel cost run out to cover this situation. For this reason, you need medical expense coverage that will help you to cover accidents, emergency medical care, and even dental care during your trip abroad. Also, your health insurance covers primary emergency care, and they probably won’t cover the cost for repatriate you back home.
- Emergency Evacuations
Under emergency evacuation coverage, the travel insurance company will cover for emergency evacuation expenses. For example, for situations such as ambulance transport to the hospital, airlift to an adequate infirmary, medically equipped flights back to home country, and similar conditions. Commonly, these evacuation expenses cost you for about $50,000. This basic coverage can be deducted if you think you might don’t need it.
- Lost, damaged, or stolen property
Well, this is the common accident happened during travel abroad. Lost or delayed baggage and canceled or delayed the flight. They are common but often overlooked. You can consider adding the coverage for this situation under Baggage coverage so you can reimburse your lost, stolen, or damaged personal belongings. Travel insurance company will also over Baggage delayed coverage to provide money to purchase essential items, such as change of clothes and toiletry until your delayed baggage arrive. There is also Travel delay coverage to help reimburse for additional expenses due to delayed flight such as extra hotel rooms booking cost or a meal at a restaurant.
- 24/7 Worldwide Assistance
Every good travel insurance company is always ready 24/7 to provide support anytime anywhere you need them when you are abroad facing those situations. So, you need to ensure that the insurers have no issue with this service, especially related to the medical issue. With 24/7 worldwide assistance for travel assistance, you can get some help for:
- Locating the nearest hospital
- Organizing for treatment
- Organizing medical transportation, i.e., ambulance
- Replacing prescriptions in an emergency situation
- Organizing transportation home
- Lost, damaged, or stolen baggage replacement assistance
- Lost or stolen passport or other travel document assistance
- Travel information
- Emergency telephone interpretation assistance to overcome language barriers
- And so on.
Some travel insurance also provides extra coverage, including life insurance, hazardous sports activities such as scuba, rental car collision for personal or rental company policy, and identity theft services if you experience stolen belongings.
The Importance of Travel Insurance
Why travel insurance is important? It is because some common insurance plans such as health care insurance don’t cover illness or other accidents abroad. Don’t make yourself regret not knowing the real truth. Here, we can say that travel insurance is a lifesaver in the case something bad happened with you abroad, such as illness, stolen property, and trip cancellation cost. So, you don’t need to spend more extra money to resolve those problems abroad.
In the end, after learning what is travel insurance, have you decide to purchase one too before taking your flight abroad? Ensure that your travel insurance is covering all those five basic coverages so you can overcome any problem abroad with less worry.