Types of Travel Insurance
Mentioned below are the most common types of Travel Insurance Policies.
Single Trip Travel Insurance
This insurance provides cover for a single trip. It provides essential coverage for holiday troubles such as flight delays, lost bags, and more.
• The majority of insurance companies provides 24 hour helpline offering support in the event of an emergency.
• The policyholder’s baggage, money, and personal belongings could be covered against damage, loss or theft. You can take additional cover; if you’re planning to go for scuba diving, bungee jumping, and skiing activities that could be considered by an insurance company as adventurous sports.
• This plan also covers the cancellation of the trip or flight delay/cancellation.
Multi Trip Travel Insurance
Multi Trip Travel Insurance is designed for those who travel more frequently. This insurance is aimed to offer cover for specialized trips such as adventure holidays. This insurance cover is best when you’re traveling with your family.
If you are a frequent traveler, choosing multi trip travel insurance is a cost-effective option. It provides,
• Damage/loss/theft of your baggage and personal belongings
• Cover to flight delays or trip cancellation.
• 24 hour helpline to assist policyholders in the event of an emergency.
Long Stay Travel Insurance
At the last minute when you are returning from your travel, you just change your mind to extend your travel. Traveling for an extended period could lead you to experience unfortunate travel mishaps. Buying long stay travel insurance possibly helps you avert holiday adversities by keeping guard against your unexpected costs and chaotic plans.There are times when just one week or two is not enough to explore all the places you are visiting. You might be planning a trip for more than a month, buying long-stay travel insurance policy works fine for your travel needs.
Here are some specific scenarios when this policy remains valid.
• When looking to travel for a prolonged period of time, it’s better to opt for long-stay travel insurance. This travel insurance policy covers your travel from around one month up to six months.
• As far as long stay travel insurance is concerned, it covers you against medical expenses, baggage loss, trip cancellation, etc.
• Those taking trips of a year will need to buy ‘backpacker insurance’ policy. This applies even if you opt for luxury accommodation.
Medical Travel Insurance
This travel insurance takes care of the health and medical issues of the policyholder that occurs during the travel. The cover provided may vary from one insurance company to the other. There are a number of travel insurance plans that both business and leisure travelers can choose from. You should choose an insurance plan that can best suit your traveling purpose and soft on your budget as well.
Medical travel insurance policy typically covers,
• Typically, the travel insurance offers coverage for emergency evacuation and travel medical expense that can help you in any part of the world during a medical emergency. Emergency evacuation coverage pays to transport to and from your hospital, along with other qualified medical expenses you may incur. Medical travel insurance plans are ideal for frequent travelers and senior citizens as well.
• It also covers Emergency Dental Expenses that include acute anesthetic treatment of your teeth.
• Apart from the sum insured specified under the Personal Accident, Insurance company will pay the sum insured to the policyholder if he/she sustains injuries during the journey when traveling by bus, rail or aircraft, and when such bodily injury leads to permanent total disability or death.
• This cover pays for expenses incurred due to loss of baggage and other personal documents and belongings.
Student Travel Insurance
Globalization has opened avenues so they can go abroad to complete their studies in any corner of the world. When going to study in other countries, safety is always a prime concern. Buying a comprehensive Student Travel Insurance policy will ensure you secure your dreams & achieve your aspirations.Student Travel Insurance is specially designed for students to safeguard their financial security in the event of any emergency. This insurance policy will further help students to study abroad without any fear/anxiety, whether they lose their baggage/personal documents or face any medical emergency.
A Student Travel Insurance policy covers
• Emergency Medical Evacuation and Medical Expenses
• Emergency dental treatment
• Loss of Passport, traveling tickets, or other documents
• Permanent partial/total disability and death • Reimbursement of tuition fee when paid in advance and/or for the remaining period (limit mentioned under the policy)
• Legal expenses
Need for Travel Insurance
It’s a proactive move to insure your trip against losses arising from any unfortunate incidents while you’re traveling. Travel insurance provides you a peace of mind against multiple perils related to travel. The Travel insurance safeguards you against listed travel misfortunes like trip cancellation, loss of baggage, medical evacuation, medical expenses abroad, hijacking, etc.
Factors to consider while calculating the premium amount
There are some vital factors that impact the travel insurance premium that you pay.
• Sum Insured
The sum insured is the maximum amount an insurance company will pay in the event of a claim. The higher sum insured would lead to higher rate of premium. Always consider your travel destination when you choose your sum insured. Medical coverage cost is a key component of the insured amount.
• Added Cover
You should seek additional cover that puts a shield against risks associated with adventure sports. Insuring important documents or expensive items also require added cover. These additional covers attract a higher premium.
• Travel destination
Some countries are considered as ‘travel unsafe countries’ and when to travel to those countries, you will need to pay higher premium taking into consideration its risk factor. The destination of your travel makes an impact in determining premium on your travel insurance.
• Stay duration
The premium amount of your travel insurance policy also depends on the duration of your stay. The premium amount increases if you extend the stay by another couple of days or weeks. Longer stays lead to a higher amount of premium.
• Age and Health Condition
Your age and health have major standing as key determinants for underwriting the travel policies. If you buy a travel policy in the early stage of life, it’s a great probability that you will be charged less premium. There are higher health risks as you grow older. Any pre-existing health conditions and conditions arising due to the intake of alcohol/drug may not be covered under the policy.
• Type of travel plan
The top-known travel insurance plans include Single Trip, Multi Trip, Long Stay Travel, and Student Travel Plan. The premium amount you need to pay is determined by the type of the plan you choose.
Buying your travel insurance policy online brings several benefits, but remember to conduct a thorough evaluation and buy a policy that fits best to your needs.
Some travel insurance companies or policies also offer protection with an additional cost involved.
• Preexisting health conditions such as diabetes and asthma.
• Participating in sports having high risk components such as skiing and scuba diving.
• Acute onset of pre-existing conditions.
• Additional Accidental Death and Dismemberment (AD&D) coverage.
• Travel to high risk countries.
Before Buying Travel Insurance Plan, Check on these Key Determinants:
• Get your Travel Insurance policy ahead of time.
• Fill the form completely and truthfully. Get all your medical tests done and obtain the medical report as required.
• If you want to extend the period of cover, furnish essential documents to your insurance company before the cover expires.
• Plan your travel ahead of time and you should also ensure that your insurance covers the entire period of your travel.
• Make sure to read the policy document completely and get the contact details of your travel insurance company so that you can have an ease of claim settlement in the event of an emergency.
• If you are curtailing your travel period, make sure to check whether you can claim for refunds.