Why Travel Insurance is Needed

Subscribing to a travel insurance plan can help you to limit any financial losses that can occur due to unexpected situations or emergencies that may arise when you are visiting any state or country.

Some such unexpected emergencies during travelling include:

• Flight or train delays and cancellations
• Medical emergencies such as illness during travel including dental care and hospitalisation costs
• Cancellation of travel due to personal and work-related reasons
• Legal aid costs if caught in litigation when abroad
• Lost or misplaced baggage
• Insolvency of the travel company during the course of your vacation
• Terrorism related trip disruptions

Costs involved in some of the above mentioned situations may be substantial. Hospitalisation expenses in some foreign countries can be a serious financial setback.

Having travel insurance plans which provide coverage for some of the above emergencies can help you to manage financial loss during your vacation or travels.

Types of Travel Insurance

There are two types of travel insurance based on the duration of coverage:-

• Temporary Travel Insurance – You can subscribe to temporary travel insurance from your travel company. Temporary travel insurance is valid only for the duration of the trip. Typically, the coverage offered by temporary travel insurance plans are limited, although less expensive than long-duration travel insurance.
• Comprehensive, Long-term Travel Insurance – This type of travel insurance provides more comprehensive coverage for situations for many instances of travelling, over a period of time. The insurance payments extend for a longer time with more optional coverage available at extra costs.

Other types of travel insurance include:

• Student travel insurance
• Airlines travel insurance
• Insurance for senior travellers
• Business trip insurance
• Cruise insurance

Features of Travel Insurance Plans

Let’s take a look at some features or terms of travel insurance plans:-

• Financial Extent of Travel Insurance Plans – Travel insurance plans can cover the complete travel costs and a certain percentage.
• Pre-existing Conditions – Ttravel insurance plans exclude pre-existing illness conditions from coverage. However, additional options or waiting for a certain time period according to the plan, can include this too under coverage.
• Coverage Exclusions – Travel insurance plans typically do not provide coverage for emergencies due to drugs or alcohol.

Before choosing a travel insurance plan, assess the financial terms as well as the type of coverage of the plan.