If you often travel, you must have come across travel insurance. But you probably didn’t understand much about it because you had no means of verifying whether it was a scam or a decent bargain. Despite that, whenever you travel heavily, you become vulnerable to financial or physical loss. Insurance agencies have designed different packages to cover the losses that you may face away from home.
For an informed decision on whether you need a travel insurance plan before your vacation or not, it would be best for you to know about travel insurance benefits. So before you throw that suitcase in the trunk of a cab for that next intercontinental meeting, you might want to go through this article.
Why Travel Insurance Might Be Worthwhile
Going on the road may come with difficulties like falling ill or getting in an accident, misplacing or having your stuff stolen, missing flights, and in extreme situations, losing your life. Travel insurance coverage is an ideal option for you if you travel frequently and need a sense of security if the worst transpires on your vacation.
While you may purchase different plans to address issues like identity fraud, here are the five primary kinds of travel insurance available. It might be worth it if you choose a package that suits your needs.
- Flight Insurance: Insurance taken for flights is essentially a life insurance policy that protects you if your airplane crashes when you’re on your journey.
- Luggage Insurance: This insurance policy protects you when your baggage gets lost, delayed, or destroyed on the road or plane. Most travel insurance plans have it. Electronics, jewelry, and other high-priced commodities may be subject to exclusions or price limits.
- Cancellation Insurance/ Travel Interruption: This policy reimburses your costs should your travel be cut short due to unexpected circumstances like illness or the cancellation of a pre-paid planned excursion. The insurance will pay for the non-refundable expenses you spent to partake in the journey. This kind of insurance will also protect you when you have to cancel a vacation following an accident or bad weather.
- Medical Coverage: If you’re going abroad, a medical travel plan may cover healthcare expenses that your primary healthcare insurance doesn’t cover. This kind of healthcare coverage pays for the medical costs that your direct health insurance doesn’t always cover.
- Evacuation Policy: In the event of an emergency, the evacuation coverage policy will incur the costs of your transportation to a healthcare facility where you’ll receive good care. But this coverage may exclude dangerous sports like paragliding. However, some travel premiums offer packages for extreme adventure sports.
When Not To Consider Travel Insurance
Buying travel insurance under these circumstances may be a waste of money.
- Paying for travel insurance may not be a sound decision if you seldom travel or already have cover via another type of insurance policy.
- It’s a smart move to know what travel cover you already have. You may be having your travel-related losses already covered by your renters’ insurance, property insurance, medical insurance, or your credit card company may offer loss coverage in certain instances.
- Some traveling agencies provide travel coverage plans. You may be given a travel insurance plan as part of a vehicle hire agreement or as part of a holiday package purchased from a cruise line.
Verdict: Is travel insurance worth it?
It is upon you to determine whether a travel insurance package will give you peace of mind when on your journey or if you do not need any. It is also imperative that you read the contract to ensure you know who and what is covered and the per-claim limit and policy term limitations to make it worthwhile.