What is a Travel Insurance Policy?
Travel has become an integral part of our lives in the past few years. Nearly every family takes some kind of leisure trip at least once a year. Businessmen need to travel frequently for work as well. Travel Insurance Policies aim to protect travellers against unforeseen circumstances, such as a trip interruption or cancellation, loss of baggage and belongings, medical emergencies or repatriation of remains in case of death. Travel insurance covers a broad category of coverage options which take into account various exigencies that may occur in a trip.
What are the benefits of buying a Travel Insurance Policy?
Travel insurance is the best way to safeguard yourself against possible losses in your trip. Most importantly, travel medical insurance safeguards against emergency medical expenses incurred. Your domestic health policy may not explicitly provide coverage abroad. Travel Insurance also typically offers coverage against trip cancellation or interruption, mostly in the case of certain emergencies pre-defined under the policy. It offers cover against loss of baggage, identity theft, and in some cases, repatriation of remains in case of your death. Travel insurers also offer on call assistance. Many people view Travel Insurance as an unnecessary overhead, especially on expensive trips. However, it can make all the difference and provide you with financial compensation in an emergency situation where you don’t know anyone.
What are the different types of Travel Insurance Policies?
There are various types of Travel Insurance Policies that can be availed.
1. Corporate Travel Insurance Plans:
This is availed by companies for their employees who are travelling on business trips. Corporate plans typically cover both domestic and international travel and offer all the standard coverage benefits of a Travel Policy
2. Student Travel Insurance Plans:
This type of policy is ideal for people who are travelling with a student visa in order to study abroad. These policies cover loss of passport, interruption in studies, and any medical expense incurred during this travel. There is much less paperwork in the student policies.
3. Single-Trip Insurance Plans:
This is a one-time policy that generally applies to a single domestic or foreign trip. These policies will only grant coverage for a single trip taken by the insured. These plans typically cover cancellation and interruption expenses as well as medical expenses.
4. Multi-Trip Insurance Plans:
These plans are generally meant of frequent travellers, such as businessmen or any other individuals. These policies have extended coverage for loss of baggage, passport, medical and other standard plan options. These are meant to provide convenience for frequent travellers so that they do not have to purchase travel insurance separately for every trip taken.
5. Family Insurance Plans:
These plans cover accident coverage, hospitalization and other expenses for an entire family travelling together. The claims are distributed across members.
6. Senior Citizen Insurance Plans:
These are aimed to provide a hassle free experience to senior citizens. They offer benefits such as cashless hospitalization and carry all the standard benefits of regular plans.
How to choose a Travel Insurance Policy?
Travel insurance comes in many flavours. There are several things you should consider while choosing the right Policy for you.
The location and distance of your travel is a big factor in determining the right policy for you. If you’re travelling to unsafe areas or if the distance of travel is exceptionally large, then different plans will apply for you. There may be exclusions to certain destination in many policies. Domestic and International Travel policies have different plans.
What you will do on your trip might factor into your travel plan choice. If you are going for a regular business trip, you may only want the basic plan. If you are going to take part in some adventurous activities, it may be a good idea to look for claims against injury in such activities or emergency medical coverage.
3. Age and Health:
Your age and health may be a factor in travel plans. Certain policies have exclusions in certain claims clauses for individuals travelling with pre-existing medical conditions. There are very different coverage options for senior citizens with most insurers. Many insurers have an age cap to offer travel insurance.
When is the right time to buy a Travel Insurance Policy?
You should think about investing in a Travel Insurance policy after your trip and itinerary are planned out. Students who are travelling abroad for recreation or studies should look to compare travel plans a few months before the travel date. Businessmen or other individuals who are anticipating frequent travel can get multi-trip travel insurance beforehand. This ensures that you can get coverage for a term which includes all the trips you plan to make. This insurance can be extended as well. People who are considering travel to dangerous areas, or considering adventure travel trips should look into insurance options while planning the trip itself. Many policies carry exclusions for certain types of activities during travel, or certain destinations deemed “dangerous”.
Should I buy the cheapest Travel Insurance Policy available?
Often, travellers do not consider Travel Insurance as a priority. Most people neglect to buy insurance and if prompted to do so by the booking agency or family and friends, end up buying the cheapest option available. This is not an advisable strategy as basic travel plans will not cover you against the real emergencies such as loss of baggage, medical emergencies, travel assistance or other exigent circumstances. It is better to take some time to research and compare the various travel insurance policies on the market to decide the policy which provides the best benefits and is most economical policy for you.
How can a Travel Insurance Policy help protect your Family?
Travel insurance can help you and your family out of tight situations in a strange place. With coverage options such as loss of baggage, medical coverage, passport loss, trip cancellation and interruption coverage, financial compensation is provided. In the unfortunate event of the death of the insured on trip, there are provisions for repatriation of the remains back to the family. This may be an extreme circumstance, but the peace of mind in such a situation is incalculable.
For a genuine and transparent advice on your Travel Insurance Plans, call our advisers on 9948 661 204 and get a Free Consultation for the first time. Alternatively, submit our enquiry form and one of our Financial Advisors will get back to you at your convenience.
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