Regardless of the distance you are going to travel, you should always be prepared and have your travel insurance secured. It also does not matter whether you are an avid traveler or just travel once a year. Travel insurance should always be a part of your budget.
Travel insurance is refused by some people because of its cost and they don’t think that it’s worth it. However, smart travelers would recommend you to get yourself one as you cannot predict what can happen, especially if you are in a different country. Travel insurance has various advantages that will assure your security, not only for your personal belongings but also your overall safety.
Travel insurance coverage has five basic inclusions: medical, evacuation, trip cancellation and interruption, and flight and baggage insurance. Some policies can be included in the package depending on the preferences of the applicant, like political evacuation or identity theft insurance.
Travel insurance companies offer different types of coverage. Some offer what they call a comprehensive insurance which covers the said 5 inclusions above. The insurance policy will still depend on the preference of the customer, if you would like to get only one type of coverage or get some additional features. There are also some companies who offer the insurances inclusions as a package.
The travel insurance cost varies depending on the inclusions and the days of travel. Some might cost around 5 to 12 percent of the total trip. Your age can also affect the rate. Rates are significantly higher for applicants aged 50 and above, while children aged 17 and below can have it for free.
Trip Cancellation or Interruption Insurance
Some say that this is the most useful inclusion in travel insurance. It is common knowledge that cancelling a trip can be very expensive and one may lose more money than expected because of unforeseen circumstances. You may end up getting sick, or your schedule might change, etc.
This insurance covers your financial losses in case you or someone in the family that is included in the insurance encounters a health problem while overseas. Before buying one, make sure that you talk to your existing medical health care plan because some already include travel medical insurance in their coverage.
A simple explanation for this inclusion is that when an emergency situation happens to you in place that is not well equipped to treat you, you can be transferred to the nearest medical facility or to your home. This is not included in your regular medical insurance and will not be considered if you participate in activities that are deemed dangerous by the companies, such as skydiving, mountain climbing, skiing, etc.
This insurance covers lost, damaged or delayed baggage, but it cannot be bought alone. It is usually combined with another insurance inclusion. Most companies also do not cover expensive belongings, such as gadgets, jewelries, etc.
This is the least popular and least demanded type of insurance. This just basically covers you while you are on the plane and can only be used if there is a plane crash. Though it is thought of as not too useful, it may still be worth including in your policy.
The more inclusions you have, the more your travel insurance cost would be as well. Travel insurance is a safety investment and is really advisable if you are going to travel to a foreign country.