How Travel Insurance Work

how-travel-insurance-work

How Travel Insurance Works –  It’s very much okay if you have not used travel insurance before or you are currently planning on purchasing one and you do not know much about what it is about, or how to go about getting it. You are very lucky to come across this article as we are going give you the best information about travel insurance and how you can get the best travel insurance policy for yourself and your family.

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The current pandemic outbreak has exposed the importance of having a travel insurance plan as you travel anywhere in the world because you do not know what to expect on your journey.

It also important to note that Insurance is a cover against any risk you might encounter in anything you do and so having travel insurance will definitely protect you against the risks associated with traveling. Since its almost impossible to predict what you will encounter during our trip regardless of your means of transportation, its becomes very important for you to get a travel insurance that will cover you not only when you fall ill during your travel, but also will cover any damage or loss of any belonging you will be taking along with you.

Travel insurance covers any form of cost or emergency that might occur during your travel. With the travel insurance cover, you are very sure of having a level of confidence and peace of mind when you are making a trip.

In this article, you will be learning a lot about travel insurance and so you have to sit back and enjoy the ride…

Table of content

  • What is travel insurance?
  • What travel insurance covers?
  • How the travel insurance works
  • How to get the best travel insurance plan

What Is Travel Insurance?

Travel insurance is a cover that protects you against certain financial risks, losses or damages that can occur while you are traveling. The losses could range from medical emergencies, loss of belongings, last-minute trip suspension, replacement of lost passport or stolen passport and many more.

One thing you should know about the travel insurance is that it is designed to cover unforeseen and unplanned events, things that are not within your control and you cannot see. Travel insurance varies by plan depending on what you think fits you, your budget and travel plan.

The travel insurance plan will not cover every situation. The travel insurance will only cover those events that are listed in the policy you purchased.  This means that its important you specify all the events you want it to cover when making the purchase.

What Travel Insurance Covers?

Travel insurance covers certain things and its important you know what the travel insurance cover so you will see how important it is and why you need to get one. Here is a good list of some of the events travel insurance can cover for you.

  • Medical emergencies, especially for a broken bone or burns, can be covered for up to $10 million
  • Acts of terrorism are covered for up to $35 million
  • Baggage Loss or damage is covered for up to $3,000
  • Baggage delays are covered for up to $1,500
  • Trip cancellation or even trip interruptions are covered for up to $6,000 per insured trip
  • Flight accidents are covered for up to $25,000

In some or most cases, the travel insurance policy can also cover a worst-case scenario that might be the death of a person and in the case, the package is known as the accident death coverage where the insurance company pays a lump sum of money to your beneficiary.

In choosing a travel insurance policy, you should be sure and specific that it covers any coronavirus-related emergencies especially in this COVID-19 period.

How The Travel Insurance Works

We have been able to show you what the travel insurance covers and in most cases, the policy reimburses you for financial losses after you file a claim and the claim was approved by the travel insurance company.

Filing a claim allows you to submit a proof of your loss to the insurance company so they can verify the event to know what happened, how it happened and reimburse you for the loss as long as that was what was covered in the policy. Some companies will allow you do this online. Its better you confirm from your insurance company for more information on how to file a claim.  

This is a break it down for you to understand better. If you happen to purchase a one-trip prime plan which includes trip cancellation benefits and two days before embarking on the journey, you become sick and advised to cancel your trip; with you insurance plan, the illness will certainly be considered as a tangible and covered reason to cancel a trip and so you could be up for a reimbursement for you prepaid and nonrefundable trip cost but this would be after you have filed a claim with the necessary documents and your claim has been approved by the insurance company.  

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In some other cases, the travel insurance may help you pay your expenses up front especially in cases where you require emergency medical treatment or emergency transportation while on a trip overseas. And most times , there might be a fixed payment of $100 per day or more for a covered travel delay or baggage delay.

Can COVID-19 be considered a covered reason for trip cancellation?

Since the outbreak of this pandemic, a lot of travel insurance companies have included epidemic and pandemic related issues to their travel insurance plan although not all travel insurance companies did this. Additionally, some travel insurance companies have included a coverage that adds covered reasons to selected benefits for losses that are clearly related to covid-19 and any other form of pandemic.

How To Get A Travel Insurance Plan

Travel Insurance companies offer a range of travel insurance plans which includes different benefits and benefit limits depending on what fits your need and budget. To get the best plan for yourself, you will have to get a quote for your trip and you might be required to input your age, cost of trip, date and also means of transportation after which few plans will be recommended for you and then you can compare the costs and benefits of each.

Depending on what you need, you can decide to choose your insurance plan and if you are the kind of person that is budget-conscious, you can choose a plan that includes coverage on trip cancellation, trip interruption and trip delay.

You can also decide on a plan that offer protection in case of medical emergencies when you travel and this plan might not really include trip cancellation or interruption benefits.

Lastly, you can consider the annual travel insurance if you plan to travel on a regular basis as it will offer you with an affordable protection for a full year of travel and might also include trip cancellation and interruption benefits. This plan can also come with other packages like rental car, baggage delay and emergency medical care also it also depends on the insurance provider.

What Affects Travel Insurance Cost?

There are several factors that can affect the cost of travel insurance and this also depends on the insurance company or provider. You should keep these factors in mind when you are purchasing travel insurance plan.

Here are some of the factors that could affect the cost of travel insurance

  • Cost of local healthcare: This is when you are traveling to a place that has high healthcare cost, this can easily increase the price of your travel insurance.
  • The amount and breadth of coverage: the higher the risk that will be involved in your trip, the more expensive the travel insurance.
  • The length and cost of the trip: the longer and more expensive the trip, the higher the price of the insurance policy.
  • Your Age: the older you are, the higher the price of the insurance policy.
  • Medical conditions: the medical condition that you want to cover will increase the cost of your insurance policy.

Final Note

Let’s make this clear. The best time to purchase travel insurance is immediately you have successfully completed your travel arrangements as the earlier you buy the insurance, the bigger the coverage you get. We strongly advice that you shouldn’t wait too long to purchase travel insurance.

Another thing we strongly advice is that, you should ensure you read through your plan documents before you leave and if you are not satisfied with it, you can request for a refund on the ground that you have not started your trip or filed a claim.

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