Should You Invest in Travel Insurance?

Photo by: Bigstockphoto
Photo by: Bigstockphoto

Travel insurance is a type of insurance that provide coverage for medical expenses, trip cancelation, flight accidents and other losses incurred while traveling locally or internationally. Travel insurance is usually purchased prior to the booking of a trip to determine the exact duration and coverage of the trip.

Types of Travel Insurance

Trip Cancellation

This travel insurance provides coverage for trip cancelation or a trip cut short due to family or personal emergency. The policy also offers reimbursement in full or in part for any non-refundable portions of travel expenses spent. Usually, trip cancelation insurance features various conditions and stipulations depending on when and how you purchased it. This insurance policy is suitable for long-haul flights.

Baggage Loss/Theft

This insurance policy is meant to provide reimbursement from all or part of the value of your travel belongings lost, stolen or damaged during the trip. Assessing the value of your belongings will depend on the policy, including the level of reimbursement or how and where it was lost.

To file a claim, you will provide proof of ownership, including receipts or photos. This insurance policy is suitable for those who are traveling with very expensive items.

Emergency/Accidental Medical

This is the most popular of all types of travel insurance. The policy provides partial or full coverage for medical costs in case you fell ill or sustained an injury during the trip. The insurance company will assess the circumstance surrounding your falling ill or becoming injured as you file a claim. Do note that not all types of emergency medical insurance are accepted overseas. That’s why it’s mighty important to check with your local agency to see if an insurance label is accepted in your destination. In addition, the insurance company has the right to reject a claim if it does not fit the terms of the policy.

Benefits of Travel Insurance

Protection from Cancelled Flights

There are cases wherein a flight is canceled, leaving passengers struggling to rebook their flight. A travel insurance makes it easier to rebook a flight without loss on the part of the passenger. The money you will spend will be reimbursed in part or in full, depending on the stipulations of the policy.

In Case of Medical Emergencies

Say you are suffering from a serious condition and you lost your luggage. Along with your prescription medication, you lost all your valuables. Travel insurance helps cover the loss from a stolen or lost luggage. It also allows you to have a prescription filled during emergencies. Travel insurance also provides medical emergency in case you fell ill in a foreign country.

Protection from Document Loss

If say, your luggage is lost along with your passport, your credit card, money, etc. Travel insurance will give you access to emergency cash and a replacement passport.

Protection from Natural Disasters

Some policies provide coverage against natural disasters. For instance, if a cruise ship, hotel or resort forces you to evacuate the premises due to a hurricane or a typhoon. Your insurance provider will cover costs spent on accommodations during an emergency.