Travel Insurance: Benefits for the Globe Trotter

by lakemen » Tue Apr 18, 2006 10:59 am

Pack your bags, pull up your socks and put on your favorite cap and start away for the trip you have planned for so long. If you have travel insurance you don't have to fret about a trip cancellation, or flight delay or missing luggage. Your travel insurance will cover all of these.

Some of you who have other policies may be protected in certain cases that are common to travel insurance coverage. If you are overseas, some medical policies may cover you for medical emergencies while some may not. Loss of baggage may be covered by home insurance and there are again many credit card companies that offer members

International medical assistance
Accidental death benefits
Dismemberment insurance and
Baggage loss coverage

The credit card companies may provide such coverage if you purchase tickets on their cards. They also offer such coverage in lieu of a small amount of money as fee.

When you have purchased non-refundable airline tickets that are expensive or booked a cruise tour, the deposit for which can't be refunded when canceling the trip, travel insurance is the solution. However, you may have to cancel your trip for various reasons and in such a case if you can get reimbursement from your travel insurance, nothing like it.

What is travel insurance?

Insurance coverage for travel means that you will be protected financially if you have to cancel your trip for a certain reason, or if any of your baggage gets stolen or lost and other similar reasons. However there may be exceptions to travel insurance and there are a lot of things to consider before you can settle for one.

What does travel insurance cover?

Travel insurance covers you for:

Insurance for trip cancellation: As the name suggests, this policy covers you for canceling a trip for any reason as complying with the policy. Most policies also reimburse the unused portion of the trip if you or an immediate family member falls ill or suffers an injury in the course of the trip. The cost for such policies is usually 5%-7% of the total cost of the vacation.

Tour operator defaults are also sometimes covered in this policy by many travel insurance companies. A policy purchased directly from your tour operator may not have provisions for tour operator default coverage. Hence, it is advisable that you purchase travel insurance policy from an independent insurance provider. However, if you are lucky you may even find insurance providers offering "cancel for any reason" policies.

A category of trip cancellation insurance is the Cancellation Waiver. Though it is different from trip cancellation insurance in certain respects, it nonetheless provides coverage if you have to cancel your trip. It is not an insurance policy and is not regulated by the state department of insurance.

Loss of baggage insurance: This policy provides coverage for lost baggage and also if they are stolen or damaged during your trip. This loss of baggage may also be covered under home insurance or renters policy for theft off-premises. It is also advisable that you find out how much (if any) insurance the airline or trip operator offers. Travelers carrying expensive jewelry, electronic equipment or sporting gear may find it reasonable to get a floater policy for their home insurance or renters policy.

Medical Emergency Insurance: Supposing you were hiking or skiing and have an accident, this policy would cover you in such cases. Say you had to stay in a foreign hospital for a long period. This insurance would provide coverage if you fall ill suddenly on a trip and need to be flown back home. If you already have health insurance, check what coverage you have and whether the above mentioned conditions will be taken care of. Find out if the policy you have will fly you back home or to any place where you can receive first-grade medical treatment. Remember in such a case low cost travel insurance may not be able to provide sufficient coverage.

Accidental Death: This policy provides coverage for the insured or any immediate family member in the event of death of either of them. However, your life insurance may have already covered you for such a condition, or your credit card company may also provide similar services. Check with the respective people and get an insurance done if you are not completely covered.

An insurance company may not be willing to provide coverage if there were already existing medical conditions in an individual. It is advisable that you should apply for insurance when you are fit. This will help you get coverage for any illness that may occur in your future. We all age and with age our chances of falling sick increases. Hence, it is a sensible idea to get insurance when we still have time.

You may purchase cheap travel insurance or an expensive one. But the fact remains that travel insurance should protect you when you need it. Getting the cheapest travel insurance may suit your pocket, but carefully analyze your needs before getting travel insurance quote. Do not be underinsured.

Can you get travel insurance online?

Yes of course you can. Looking for travel insurance cover online may be a good option for those who are keen on shopping before they settle for insurance. You can go through various sites offering travel insurance. Compare the price that each company offers and get the best travel insurance suitable for you.

What are pre-existing conditions and will they be covered?

Although the phrase 'pre-existing conditions' may vary in definition from one insurance company to the other, there may be a general description nevertheless. It may be defined as any illness or sickness of an individual that existed before applying for insurance. It may also be any injury or physical, mental, nervous or medical condition/disorder that existed at the time when making an insurance application or during the time specified by the company and has any complications that might recur or lead to any medical consequences therefrom.

If you ask does travel insurance cover more than what it mentions, then you must know that usually the insurance companies do not cover pre-existing conditions. But if you are lucky you may come across few companies that may offer such coverage.

Tips for travel insurance

Tip 1: Get hold of a good travel agent who has good working relationships with insurance providers who can offer you different types of policies.

Tip 2: You may even consult your regular travel agent for insurance. He might help you with a good policy.

Tip 3: You may rely on the internet for information and participate in forum discussions where you can ask questions on travel insurance. Friends may also be helpful.

Tip 4: The U.S Travel Insurance Association or similar trade associations in your state may provide you with a list of insurance agents on request. They also provide information on travel insurance.

Tip 5: Research your coverage and cost with the help of various insurance comparison sites.

Tip 6: ‘High-adventure' risks may not be covered by many insurance policies. Hence, look for a policy that covers sports related injuries.

Tip 7: If you have any pre-existing condition, then look for a policy that covers such a condition. Most policies don't. However, you may just be lucky.

Total Comments: 17

Posted: Sat Jun 10, 2006 09:36 am Post Subject: Types of Travel insurance

It is important to have adequate insurance protection before set out for a travel. Because so many tensions are associated at present with the travel industry as the global politics is disturbed enough. And so before any unforeseen events take place like cancellation of trips, losses of baggage, medical assistance, educate yourself with the major types of Travel insurances.

1. Trip cancellation/interruption insurance:

This will reimburse in the cases like-
• If the travel company goes out of business
• If you cancel the trip because of illness or death in the family
• Due to other calamities mentioned in the policy

Also most of the policies return the unused portion of the vacation if a family member got seriously ill or injured during the trip. It costs 5% to 7% of the price of the trip to insure. Prices are based on the age as well as on the cost of the trip.

Travel insurance may also cover unanticipated emergencies, like accidents on the way to the airport, a natural disaster, a fire or flood at your house. However, the policy may not cover if someone changes his plan on his own. Generally self-inflicted injuries and problems arising from use of illegal drugs are not included in travel insurance

2. Baggage insurance:

This will cover baggage and personal belongings from theft, lost or damage during the trip. One has to find how much insurance the trip operator is providing for the belongings before purchasing this type of coverage. If homeowner's policy provides the coverage for off-premises theft then the stolen luggage will be covered by the insurer less deductibles.

If someone is traveling with expensive electronic equipment or jewelry, it may be more cost-effective to purchase an endorsement floater to the homeowners or renters policy.

3. Accidental Death:

It provides the coverage if the traveler or his family member die on the vacation. If there is enough life insurance coverage or other financial provisions this may be duplicate one.

4. Emergency Medical assistance:

Coverages are related to the transportation when a medical emergency appears. This will provide coverage in the situations like:

• Staying for a long period in the foreign hospital.
• Got seriously sick or injured and needed to be flown home.

Once again before purchasing this type of policy one needs to know what type of coverage the health insurance policy provides and the limits while traveling abroad.

Besides the four major types there are other types of travel insurance. As for example Baggage delays coverage, Travel document loss coverage, Terrorism clauses. But one needs to decide which are important to him and then match to the company's plan.

Posted: Fri Jun 20, 2008 06:52 am Post Subject:

thanks lakemen.....you article provides lot of information on travel insurance..one thing i want to know that is there any insuance provider which insure us against accidents caused under the influence of alcohols or drugs....any company which provides this insurance under some conditions..i am young and while travelling with my friends there is always a risk of accident because of alcohols....i do not take drugs....
so if you have any information..do tell me

Posted: Sat Jun 21, 2008 10:57 am Post Subject:

Tushar, I'm shamelessly copy pasting the following line from my own article for your benefit. Hope it'll put your anxieties at rest.

Accidents while driving under the influence of alcohol or drugs are certainly not covered.

Insurance companies quite rightly exclude paying any benefit for the accidents caused while driving under the influence. I guess, the time is just right for you to change your old friends and slip into the circle of people who're little more matured.

Best of luck!!

Posted: Fri Jun 27, 2008 08:57 am Post Subject:

Lakemen is right, Tushar. Travellers' insurance excludes damages caused while driving under influence by terming it as an irresponsible behavior of the insured. The same applies if you fail to handle your belongings in a responsible fashion.

Hope that clarifies.

Thanks,
Carol

Posted: Fri Jun 27, 2008 09:17 am Post Subject:

Hi All, I'm glad to find this place. You guys are awesome with your suggestions. I too have a situation with travel insurance.

We're flying offshore on a medical trip for my grandfather. he'll be turning 70 very soon. So, will the insurance company cover him at this age?

Thanks in advance,
Collins

Posted: Fri Jun 27, 2008 09:29 am Post Subject:

Hi Collins, welcome to ampminsure and thanks a bunch for all the praises.

he'll be turning 70 very soon. So, will the insurance company cover him at this age?

Well, age may not be an issue for obtaining travel insurance. Some insurers don't impose any restriction upon the age of the applicant. Also, Travel insurance covers the applicant with the pre-existing medical conditions. But, your problem lies elsewhere.

Medical Trips are not normally covered under a travellers' insurance. Hence, you really need to search hard for a carrier to cover the trip for your grandpa.

BTW, I wish you a safe journey and a quick recovery for your grandfather.

Regards,
Juanita

Posted: Fri Jun 27, 2008 02:03 pm Post Subject:

Yes its right that many people do worry about obtaining travel insurance at that point in age.
But I've seen people within 80 years have had coverage with a little bit of shopping. You may need to pay heavier premiums under circumstances that you choose not to shop but make sure that get benefits eg. medical coverage, theft coverage, trips cancellation, medical assistance back home.
Wish you get the best for your trip!
Plasmahectic

Posted: Sun Jun 29, 2008 04:56 pm Post Subject:

Please help me...My uncle in law is shifting to chicago next week for his treament and insurance comapanies are not willing to insure him....What should i do.Should I go to court against the company?

Posted: Mon Jun 30, 2008 07:14 am Post Subject:

Please help me...My uncle in law is shifting to chicago next week for his treament and insurance comapanies are not willing to insure him....What should i do.Should I go to court against the company?

Tushar, I'm not sure that I've got a grasp of your problem.

What type of insurance policy are you talking about?

Why do you want to move to the court? and against whom?

IMO, the insurance companies have the discretion not to cover certain perils, which they feel may cause damages to their business. I don't think you have a case in hand.

Please, elucidate your question, we then may be of some help to you.

Posted: Mon Jun 30, 2008 09:58 am Post Subject:

what i mean is that will the companies insure him against his life.we are taking him to chicago for his treatment and if something undesired happens on the way, then will the insurance comapnies help us???