The Basics of a Travel Insurance Policy

Travel insurance provides protection for individuals and families traveling domestically and internationally against financial losses and medical expenses that may occur before or during their trip. The main categories of insurance protection are:

• Trip cancellation
• Medical expenses
• Accidental death and accidents
• Specialty coverage

Without the right protection, a dream vacation or simple business trip can become a major ordeal if travelers are unprepared. Review your existing credit card, hotel and transportation provider cancellation policies. If their schedules, exclusions and conditions are insufficient, a travel insurance policy can provide travelers with much needed peace of mind should circumstances interrupt their plans. This article will explain the basics as well as some of the additional trip protection available.

Trip Cancellation

This insurance coverage protects travelers in the event that they have to cancel, interrupt or delay their journey. Typical reasons covered by a trip protection policy include delays due to sudden illness or injury and weather-related issues as well as terrorism. The insurance benefit is usually the difference between the cost of the tickets and the amount refunded by any vendors.

Medical Expenses

Travelers may experience an emergency, an acute illness or need routine medical care during their trip if they become ill or injured. Depending upon the policy, the insurance may provide short-term coverage, long-term care or medical transportation and repatriation services. Many regular medical insurance policies do not cover treatment overseas.

Accidental Death and Accidents

These policies are designed to provide benefits to a traveler’s surviving beneficiaries in the event of a fatal accident, dismemberment or other serious injury.

Specialty Coverage

These policy riders are designed to cover travelers who may participate in high-risk extreme sports or similar activities during the trip. There are policies designed specifically for those traveling aboard a cruise ship. Designed to fill gaps in general coverage policies, these specialty products may provide better coverage than a regular package plan.

Purchasing a Travel Insurance Policy

Travel insurance can be purchased in one of three ways:

• Per trip protection is the most common type of insurance. It covers travelers for a single trip.
• Multi-trip policies provide protection for several trips during a one-year period as long as no trip exceeds 30 days.
• An annual policy provides coverage for a full year. It is designed to cover frequent travelers and those whose journeys may exceed 30 days.

Enter your trip details into our free quote form to compare and buy travel insurance online.