Categories
Travel Insurance

Everything You Need to Know About Travel Insurance

Various types of insurance schemes are out there. Travel insurance, among them is little known. People love to travel, but do they insure their tours? Not many of them. But knowing about travel insurance can save them couple hundred bucks. Don’t believe me? Okay, keep reading then.

Why travel insurance?

Think of a scenario – you are alone in a foreign country, not knowing the native language thus unable to communicate with the locals – if you need medical assistance or if your stuffs are stolen and you don’t have enough money to cover the expenses, travel insurance is the only thing that can save you.

There’s an apathy

Despite obvious benefits of travel insurance, not many people are keen on the idea of purchasing insurance for travel. A report from Pi Datametrics listed top 20 sites across the entire insurance sector. According to the report, the most popular insurance types are home insurance, health & life insurance and auto insurance.

travel insurance tips

Insurance Information Institute (III) did a quantitative study of the insurance sector. The study shows independent agents, independent broker-dealers, banks and full-service national broker-dealers have been the major distribution catalysts for individual annuity sales between the years 2012 and 2016. Take a look at the infograph below:

individual annuity sales

It’s not that banks and national broker-dealers don’t offer travel insurance. It’s only that people historically purchased life insurance policies from these distribution channels. The popular non-life insurance policies have been auto and health.

Silver lining

Clearly, people are not as enthusiastic to buy travel insurance plans as they are to buy car insurance, health insurance and life insurance. The good news is there’s a silver lining. Travel insurance market is expected to grow in the coming years. Allied Market Research expects this market to be worth $28 billion by 2022. The fact that it’s a global estimate indicates there’s a growing interest in travel worldwide and people are realizing the problems of traveling to unknown places without insurance.

Travel insurance market

Insurance schemes for travel are not as expensive as other insurance schemes. There are quite a few reasons behind this. Reason number one; traveling to an overseas location is always expensive, travel insurance companies know that. They know very if their insurance plans for travel press customers for high premium, many would shy away.

Hence, they offer cheap insurance plans for travel to attract customers. In travel insurance market, competitive advantage lies in lowering premium rate. Companies agree that it is, at least for now, is a requisite for the insurance market for travelers to grow.

Another reason is segmentation of the market. People paying for travel insurance plans are often senior citizens, a family of four or more and businesses travelers. The reason these people pay for insurance is they travel frequently, two or three times a year and they go to far off locations. Without insurance, the out of pocket would be huge for them.

Benefits of travel insurance

If you are still not convinced why you need insurance for traveling, take a look at the reasons below:

  • Insurance plans for travelers cover medical costs. If you can find a good deal, medical evacuation, ambulance and doctor’s cost – everything would be covered.
  • In case you have to return home immediately due to serious sickness, the flight cost would be provided by the company.
  • A lot of travelers don’t consider the financial impact of delays. Insurance for travelers reimburses losses occurred due to unavoidable delay.
  • Sometimes, travelers find it hard to pay additional costs. There are insurance plans for travelers that cover a range of unanticipated costs including housekeeping and domestic services.

It’d be foolish on your part to miss out on these benefits. Insurance schemes for travelers come in various forms and premium options. If you want to avail the benefits and memorize your next trip, talk to a travel insurance provider today.

Things to ask

Like everything else, don’t settle for a bunk deal when better options are around. Find several insurance deals for travel and compare them before selecting one. The selection process, however, can be a little troublesome. Pro tips you should follow are:

  • Ask the insurance company if there’s any hidden cost.
  • Bargain for lowering the premium.
  • Ask them to explain the coverage in details.
  • Ask them if they require you to stay in certain places when you are abroad.

The more you ask, the more you know. And the more you know, the better decisions you can take. So inquire everything about a travel insurance plan before selecting it.

Summing up

Insurance for travelers is a growing trend. It’s not a fad that will disappear after some time. If you are a traveler, who is worried about his future experiences or about problems he might face after visiting a foreign country – problems like sudden illness and resulting medical cost – opt for travel insurance.

Categories
Travel Insurance

4 Tips for Buying a Travel Insurance Policy

So you read my last article and decided to buy travel insurance? Great. The next step is to compare travel insurance offers. It’s not as easy as it sounds. So here I am again with nuggets of advice for you to select a good insurance deal for travel.

Travel Insurance Policy

Keep reading as the tips are coming below:

Understand the coverage

This holds true not just for travel insurance, but for all insurance types. Because insurance coverage is limited, you must know your needs and your reality. Here are the important questions you should be asking yourself:

Where am I traveling to? Should I drive or take a flight? What fun activities am I going to indulge myself in once I am there? How many people are going with me?

If it’s a solo trip, the premium would be low. Budget travelers may be interested in this. Most insurance for travel offers is for couples or families, so good luck finding one for a person single traveling. If your plan is sightseeing and nothing else, you can quickly find a desirable travel insurance scheme. But if you are traveling to a sea sight for enjoying scuba diving, snorkeling, and paragliding, the premium could be high as these are all risky activities.

Simply put, the coverage is a variable. So is the premium rate. If you are traveling to a nearby place, for a small duration and not pining for an adventurous trip, the premium would be affordable.

Is it upgradable?

Do ask this question to the insurance agent. It all depends on his answer. If he answers in the affirmative, the policy is worth buying. If he answers in the negative, forget it and look for another plan which might be worth paying money for.

But what does it mean for a travel insurance scheme to be upgradable? It means the coverage could be extended in the future. Sometimes, an insurance policy for travelers only covers indemnity for the medical cost that one incurs abroad during their trip. But a little bit of bargain and more insights into the company’s policy guidelines (agents are often hesitant to reveal the full scope of the coverage) can give you a better deal.

However, the fact that some travel insurance policies are upgradable doesn’t indicate you can include high-risk activities under the coverage on a later date. What you can do instead is buy a separate insurance plan. I am sure there insurance plans for tourists who go to places for their share of adventurous activities.

Similar to upgrade, downgrades are also crucial. If after visiting the place of fancy, you somehow feel that you have unnecessarily bulked up the travel insurance coverage, should you be able to downgrade it and get a portion of your money refunded? Ask your agent.

Zero tolerance for intoxicants

Most insurance policies for travelers have zero tolerance for intoxicants. In other words, the policies don’t cover accidents/injury/illness due to alcohol and drugs. For any traveler, looking for an insurance plan, this is a very important thing to remember.

Many nations have strict laws against drugs. Alcohol is permissible, but drugs are “no-no” in most places. It’s best that you fully know the laws of the country you are planning to visit. Is alcohol consumption banned there? Is it allowed for tourists? Get every piece of information to save yourself from legal trouble and also for travel insurance coverage.

Insurance companies don’t disclose how they verify whether an injury/accident happened due to alcohol or drug. So no point asking them. Just stay away from intoxicants and if you meet an accident or fall sick during your trip, get the local authorities you confirm that you didn’t do alcohol or drug before.

Additional Exclusions

It’s important you get a list of all the exclusions. Just like extended coverage, an insurance policy for travelers might have an extended list of exclusions. Injury or damage caused by extreme weather conditions is a great example of exclusion. Normally acts of gods such as earthquake and natural calamity fall into this category.

However, a travel insurance company might extend their exclusion list to include acts of war, civil or political unrest and acts of terrorism. If the policy you are buying comes with an extended list, you won’t be reimbursed for any damage to health and belongings due to the said acts during your entire trip.

If you have any pre-existing medical condition, declare it before your purchase the policy. Or else, any damage occurring due to it would be null and void.

Tell the truth

When looking for a travel insurance policy, we expect the insurance provider to be truthful. We as customers should tell the truth as well, which in this context means not hiding anything and disclosing everything that might be relevant to the policy.

Summing up

The tips discussed here will help you get yourself a suitable travel insurance plan – one that addresses all your queries and concerns. So follow these tips.