Understanding travel insurance terms and specific details offered with policy benefits can be similar to deciphering a foreign language. Spending a little time reviewing confusing travel insurance definitions can save money down the road and help you identify the best plans and benefits. Because benefits have to be administered fairly, travel insurance companies and underwriters have to be extremely specific about what they will and will not cover as well as the definition of applicable terms and benefits. The highly-specialized terms and benefit-specific fine print that contributes to confusing travel insurance terms is also responsible or the concise definitions that determine approvals and claim denials.
To some extent, travel insurance terms are also affected by the legal liability of airlines, hotels, innkeepers and other groups providing travel services. Travel benefits and services typically fall into different coverage categories that many shoppers find confusing. For example, medical evacuation coverage includes emergency air transportation while medical expense coverage includes overseas medical bills incurred through a physician or hospital. Other policy terms like Accidental Death & Dismemberment also known as AD&D coverage provide a secondary policy sub-limit specifically for fatal injuries, amputations and severe injuries resulting in the loss of a body part.
Once providers have established what services are offered with each benefit, the policy terms will outline what the coverage limits and exclusions are for each benefit. Confusing travel insurance limits can range from benefits defined in per day allotments for trip interruption coverage to medical evacuation coverage that includes a one-time benefit cap. Some providers also offer unrestricted benefits on some services. Because terms and limits vary with each benefit, travel insurance providers often include a simple chart that includes key limits and benefits associated with each portion of the plan.
Policy exclusions are among the most confusing travel insurance terms. Common exclusions range from specifics that prevent liability in limited circumstances to broad exclusions that prevent policyholders from receiving any type of compensation after situations involving illegal activities, intoxication or dangerous recreational sports. Exclusions also involve complex definitions and confusing travel insurance terms that determine what constitutes unattended baggage or a secure location. In some cases, baggage and valuable items left in a hotel room may be considered unattended if they are not locked in a safe.
If you are unclear about confusing travel insurance terms, it’s imperative to review all of the policy details, fine print and exclusion info included in the summary of benefits. Asking questions before you buy is the easiest way to clarify confusing travel insurance jargon. A few minutes on the phone before your trip can easily prevent a stressful situation when you’re traveling overseas. TravelInsurance.com prides itself on transparency and we have made each benefit in the quote process a click-able link which opens a window containing the coverage details, definitions and exclusions for each benefit.