Definition of travel insurance
What is travel insurance?
Travel insurance is a document that you buy that protects you from some of the financial risks and losses that can occur while traveling. These losses can be simple, such as a delay in the travel bag, or the losses are large, such as canceling a trip at the last minute or becoming ill abroad and becoming required to pay emergency medical expenses.
Travel insurance coverage
What does travel insurance cover?
Many people feel the term travel insurance is loose and that travel insurance means a lot of different things. However, travel insurance falls into two main
documents : The first is the document that includes travel cancellation insurance.
The second document is a document that does not include travel cancellation insurance but primarily focuses on travel health insurance.
What does a travel cancellation insurance cover cover?
Travel cancellation insurance policy (the second document) is an insurance policy that includes coverage of various risks such as:
1. Cancellation of travel:
In the event that you need to cancel your travel for good reasons before your departure, such as sickness or unemployment, the travel cancellation insurance will compensate you for the expenses you have paid, which are not refundable from the travel cost, such as airline ticket and hotel reservation.
If you purchased travel insurance well in advance of your flight and the time to purchase travel insurance is very close to the time you booked airline tickets and hotel accommodations (the time you paid the non-refundable portion of airfare and accommodation), then many travel insurance documents issued by you will allow Different companies cancel travel for any reason and pay a higher premium.
2. Stop travel:
In the event that you need to return home from your trip early for reasons covered by the insurance policy, such as the house on fire, flooded, or death occurred to someone close to you, the travel insurance will help you pay the additional expenses to make arrangements to return home early.
3. Emergency medical expenses:
If you fall ill or be injured during your trip, travel insurance will pay the expenses.
Your health insurance inside your country of origin may not cover emergency medical cases outside your country of origin, or it may provide limited coverage, or you may find the amount of insurance provided by your local health insurance is low and insufficient due to the currency difference with foreign countries.
4. Emergency medical evacuation:
If you fall ill or become injured during your trip, your travel insurance policy will take care of your treatment at the nearest medical facility where adequate medical care can be provided. Once you are stable enough to travel home, your travel insurance policy may also pay for your repatriation expenses under the “home” benefits.
5. Return of the mortal remains:
God forbid, if the death occurred during travel, the insurance policy will pay for the repatriation of your mortal remains.
6. Travel bags:
Various travel insurance policies may cover the loss of suitcases in which you boarded the plane, as well as the risk of baggage delay.
7. Death in accident and total and partial disability:
This coverage in the travel insurance policy means that a money is paid to the beneficiaries in the event of death in an accident while traveling, and you will also be compensated with a financial amount that is specified from the beginning in the insurance policy if you have a total or partial disability during travel.
8. Other Coverages and Benefits:
There may be other covers and benefits in the insurance policy such as travel delay, emergency cash transfers, counseling and reception services, insurance against passport theft, car rental coverage, airline accidents, etc. These additional coverage may differ between companies and some of them and between documents and each other.
What does the travel health insurance cover cover?
Travel health insurance often does not include travel cancellation coverage, but focuses primarily on medical benefits. A travel health insurance policy may provide better medical coverage than a travel cancellation insurance policy, coverage may not be strictly limited to major emergencies as is the case in a travel cancellation insurance policy. This type of coverage is generally suitable for people who travel longer outside of their home country.
Many travel medical insurance plans also cover many of the benefits mentioned above within a travel cancellation insurance policy.
The importance of purchasing a travel insurance policy
Is travel insurance necessary?
Yes, although many people think that travel insurance is an unnecessary cost. However, if you are traveling far from home, the expenses for Medicare and / or Emergency Medical Evacuation may be much higher than the prevailing cost for Medicare in your home country. It is extremely difficult for most people to pay $ 50,000 in medical expenses in a health emergency. Even if someone had that much money, it would still be difficult to arrange for medical bills and medical evacuations. Let the travel insurance companies handle those expenses in such unfortunate events that you will have enough things to worry about.
Many people wrongly assume that local (home) health insurance, home insurance, or insurance through the bank will take care of everything and they don’t need additional travel insurance. Be sure to carefully review the amount of the grant in the documents you have and make sure that it is sufficient for you to be adequately covered.
The price of the travel insurance policy
Contrary to what many people think, the price of the insurance policy is cheap, but it depends on the type of policy. Is the travel document for the Schengen area (European Union) or for the whole world except for America and Canada or for the whole world, America and Canada, and in order to clarify the price of the travel insurance policy, we will multiply an example with the price of the Schengen travel insurance policy, because it is mandatory when traveling to the European Union countries. For your information, 30,000 yuan is the minimum amount that should be in the Schengen travel insurance policy to cover emergency medical expenses.
For example, the price of the Schengen travel document for a period of five days covering 50 thousand US dollars or 30 thousand euros for emergency medical expenses is on average from 5 to 10 dollars depending on the privileges, covers and other exceptions in the document.
The ideal time to purchase a travel insurance policy
When do you buy a travel insurance policy?
As with all things in life, timing is the most important thing especially when it comes to deciding when to purchase travel insurance. The travel insurance policy is designed to protect you from unforeseen events, which means that the insurance policy is supposed to be purchased before the risk (the unexpected event) occurs. For example, you will not be able to purchase a travel insurance policy after you decide to cancel the trip, just as you cannot purchase car insurance to cover any accident that has already occurred.
It is best to purchase a travel insurance policy when booking your flight so that you are eligible for coverage that allows you to cancel travel before departure. For example, if you broke your leg before traveling and need to delay travel until you can hike in the Alps, travel insurance will compensate you for the non-refundable money you paid.