Even the most perfectly planned travel plans can go awry and we have ample examples to corroborate the phenomenon. Well, the COVID-19 Pandemic is the best recent instance wherein the itineraries of millions of people were jeopardized due to factors beyond their control. So, what can you do to best deal with such untoward incidents? Well, opting for travel insurance is an ideal solution. Interested to know more? Read ahead!
What is a Travel Insurance Policy?
In layperson’s language, travel insurance can be defined as a type of insurance that covers various things associated with traveling. These include medical expenses, lost luggage, flight cancellation, and more. It ensures an all-encompassing and comprehensive coverage in case of any emergency during a person’s trips to another country.
Types of Travel Insurance
Many people are aware of the basics of travel insurance. But, what they do not realize is that travel insurance is of several types. To begin with, travel insurance policies differ depending on whether you are traveling abroad or domestically. Likewise, there are variations based on if you have a single trip or multiple trips planned and whether you are traveling alone or with a group. The typical travel insurance policies include –
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International and Domestic Travel Insurance Policies
As the name suggests, international travel insurance plans cover trips taken abroad and domestic travel insurance policies cover trips within the country. Furthermore, in case of international travel insurance, the plans are categorized vis-a-vis the countries they cover.
Also read: Guide to Using your Credit Card’s Travel Insurance
So, you can find plans that cover specific countries or regions, while there are others that cover all countries except a few. Finally, you can also opt for travel insurance policies that cover your trips to any country sans any exception.
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Single-Trip and Multi-Trip Travel Insurance Plans
The second type of travel insurance plan is based on whether you have single trips or multiple trips planned ahead. A single-trip travel insurance, quite understandably, covers one specific trip for a specified number of days that is lucidly stated in the policy. The coverage begins from your date of departure till you return.
A multi-trip travel insurance plan, on the other hand, pays for many trips you take within a year of the policy’s start date. It is excellent if you are a travel enthusiast or have business trips coming up frequently.
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Individual and Group Travel Insurance Policies
Quite understandably, an individual travel insurance policy is appropriate if you are either traveling alone or with your family. Yes, the term is ‘individual,’ but it covers both you (the policyholder) and your family members joining the trip. However, the only condition is that their names must be clearly mentioned when you buy the individual travel insurance plan.
On the other hand, a group travel insurance plan is a great choice for organizations whose employees are traveling or frequently travel for business. Likewise, these plans also have pertinent relevance for tour operations to cover separate individuals who might be traveling together as part of a tour package.
Also read: Does Personal Car Insurance Cover Business Use? Which Policy To Buy?
It is essential to remember that most travel and vacation plans by agencies include group travel insurance.
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Student Travel Insurance Policy
Last but not least, another type of travel insurance that has gained popularity in recent times, especially after the COVID-19 pandemic is the student travel insurance policy. The Coronavirus Pandemic of 2020 was an incredibly challenging phase for many, including millions of students studying abroad. Study abroad students must have student travel insurance since it pays for medical costs overseas and reimburses paid semester fees in the event that the policyholder’s education is disrupted for legitimate, uncontrolled circumstances.
Now that we have touched upon the types of travel insurance plans, let us check what they usually cover.
What Does a Travel Insurance Cover?
Some of the risks covered under a travel insurance plan are –
- Personal accident cover, which includes permanent total disability and the death of the policyholder
- Accident and sickness medical reimbursement
- Emergency evacuation
- Dental treatment relief
- Repatriation of remains in case of death
- Baggage delay
- Loss of checked baggage
- Loss of passport
- Flight hijack
- Flight delay
- Home burglary
- Trip curtailment
- Trip cancellation
- Missed connection or missed departure
- Bounced hotel
- Bounced airline booking
It is essential to remember that risks covered under a travel insurance policy varies on the type of plan you choose and your unique requirements.
What Is Excluded from a Travel Insurance Plan?
Usually, a travel insurance does not cover losses caused by reasons and circumstances that are within your, the policy holder’s, control. These plans are specifically designed to prospect your trip investments in case of situations and circumstances that are beyond your control.
For instance, if your departure during a connecting flight is delayed because of the initial flight being a lot later than expected, you can file a standard trip insurance claim. However, if your departure is missed because you were sleeping in the lounge area and did not hear the boarding call, then you are not eligible to file a trip cancellation insurance claim.
Likewise, a travel insurance policy comes with certain exclusions, such as –
- Elective procedures
- Mental health care
- Routine pregnancy
- Routine physicals
- Routine dental exams
- Physical therapy
- Participation in adventure or extreme activities
Do You Need a Travel Insurance Policy?
Opting for a travel insurance plan becomes worthwhile if one or several of the below-mentioned pointers resonate with you.
- Your trip is non-refundable and you cannot afford to lose it all
- You are traveling internally
- You are traveling to a remote area with limited healthcare facilities
- You are traveling to a region prone to hurricanes
- Your trip includes multiple flights or many destinations
Wrapping It Up
So, there we have it, an overview of a comprehensive travel insurance plan, its five types and whether or not you really need it. If you are someone who travels from one part of the globe to another several times a year, a travel insurance plan, especially a multi-trip insurance policy, is worth it.
