Traveling outside the United States for business or pleasure can be interesting and exciting, but can also present certain risks that a traveler would do well to consider. This is especially true in areas that may be politically unstable or have a history of severe weather or natural disasters. Additionally, becoming ill or injured while out of the country can pose unexpected problems and expense. Protecting yourself before your trip with a good travel insurance policy containing some well-chosen insurance options can provide needed assistance in the event of many untoward events that can possibly occur abroad.
Elements of a Travel Insurance Policy
Buying a travel insurance policy is similar to buying any other type of insurance. In exchange for a predetermined fee called the premium amount, an insurer agrees to assume specific but unknown future risk on the part of the policyholder. Options offered in a typical travel insurance policy are also important to understand; they can include protection for everything from having a work-related event requiring a trip cancellation to reimbursement of golfing greens fees forfeited because of bad weather. Competition in the travel insurance business has also increased significantly in recent years, mainly due to the Internet, and the insurance options offered by various companies have become much more comprehensive. Since more Americans are traveling abroad these days and many excursions are involving adventurous and higher risk elements, the purchase of a travel insurance policy is becoming a much more common consideration.
Like any insurance policy, travel insurance has basic terms common to most and a long list of optional benefits that can be added on at additional expense. The most basic form is simple flight insurance, which covers injury or death occurring during the flight. Medical coverage, which is an add-on, pays benefits towards medical costs incurred as a result of becoming ill or injured while away. You can also get coverage for accidental death and dismemberment, medical evacuation/repatriation, trip cancellation or interruption, departure delay or delayed baggage. Commonly selected coverage will also pay benefits for damaged, lost or stolen personal possessions and the emergency replacement of items deemed essential.
A travel insurance policy is meant to protect the policyholder from financial loss due to a wide assortment of incidents that could possibly occur. They’re typically not expensive but could mean a world of difference.