These
article/tips are not only for travelers in the U.S.A, it is applicable to all
travelers around the world. It is very necessary that you read these tips
carefully one after the other so that you wouldn’t miss any vital point – Read Previous Posts on Insurances.
Any
Traveler thinking ahead are smart to purchase "travel insurance." The
term travel insurance is a bit of misnomer though because it's not really
insurance per the law, it's actually trip protection and there are a few things
you need to know about it.
Trip
protection is considered a type of limited duration "insurance." It begins when you purchase the policy and
ends when your vacation ends. The
premium is based solely on the amount you spent on your trip. You get so much
coverage for so many dollars you spend.
The more you spend for your vacation, the higher the premium.
Comparing
policies is the best way to determine which protection is best for you. Websites such as http://www.visitorshield.com,
http://www.visitorscoverage.com (for international travel),
http://www.insuremytrip.com can be helpful in comparing policy benefits as well
as premium rates.
You
should look for policies that have the following benefits:
Trip
Cancellation –
This
feature will allow you to be reimbursed a certain percentage of your trip
purchase price (again depending on the policy) IF you meet certain conditions.
Things like forgetting your passport, being denied boarding for any reason (passport
damaged, missing documents etc), missing a flight (due to your negligence),
missing a connection (due to your negligence) etc are usually not covered. Things that are covered include death of a
family member (which is usually specifically defined), sometimes job loss, your
own illness or severe illness of a family member or travel partner.
Additionally, look for pre-existing condition exclusion and how long the look
back period is (some policies can look back 180 days some only 90 or 60). Policies have very specific exclusions and
you should check what they are before you buy.
Trip
Interruption/delay –
This
benefit allows you to be reimbursed a defined benefit amount if you are truly
interrupted and cannot complete your trip.
Additionally, if your trip is delayed the policy will often pay a daily
rate for the days you missed or will miss up to a specified maximum. A good policy will often pay for you to
travel back to your destination, should you be able to, by covering you for a
new flight or other transportation to your destination. Reimbursement will happen if the delay or
interruption is caused by flight delay (of more than a certain number of
hours), weather issues, documented theft of travel documents (passports, visas
etc), and the illness, injury or death of family member or traveling partner,
among a few others.
Lost/Delayed
Baggage Benefit –
This
benefit provides you with monetary compensation should your bag be delayed more
than a specified number of hours (determined by the policy you purchase) or if
the baggage is all together lost. Payments are usually calculated as 100%
actual cash value of items if a receipt can be provided. Otherwise payments can
be limited to between 50 and 75% of the cash value without a receipt. Money, tickets, prosthetic limbs, eye glasses
and things of that nature are often not reimbursable. Additionally, there may be a limit on how
much you can be reimbursed for lost or stolen jewelry. Finally, bags that have normal wear and tear
or that have been damaged by the airline do not qualify for reimbursement
either.
Medical
Benefits/Emergency Assistance Benefits –
Most
medical benefits are paid at usual and customary rates (meaning typical for the
area). The illness or injury must occur
while the policy is in effect and cannot be pre-existing (unless you purchased
a waiver). It should be noted that travel protection does not pay primarily if
you already have valid insurance from another source (i.e. your employer or
individual health policy). Most travel
protection plans provide emergency assistance benefits which will often pay for
plane tickets for you to return home in the event of an illness or injury when
it is doctor ordered. It may also pay to
fly a spouse or family member to a hospital where you are. And it will pay for your (or your traveling
companion’s) body to be flown back to the United States in the event of your
(or your traveling companion’s) death.
Accidental Death
& Dismemberment –
Many
policies cover death and loss due to air travel. The schedule of benefits for what a policy
covers will usually be the policy. A typical death benefit is $10,000 for loss
of life with varying amounts for other losses.
Travel Advisory
& Travel Warning (Limited Coverage) –
It
is important to be aware that most travel insurance providers do not cover
regions or countries which the national government considers to be unsafe. Thus, if you intend to travel to a foreign
destination which has a travel advisory warning by your national government, it
is very important to contact your travel insurance provider to understand what
coverage you will or will not have if you decide to go there. Generally speaking, if your government
considers it dangerous to be in a certain foreign destination, your travel
insurance provider may not cover you for any problems you encounter while
there.
Overall,
travelers should purchase a policy that best suit his/her needs taking into
account the benefits and the exclusions.
Some policies are no-frills offering only limited coverage for the above
items. Some policies ofter extensive
benefits beyond what has been mentioned in this article. Whether a policy is worth the premium is at
the discretion of the traveler and it is always a good idea to call the travel
protection company to get more details if needed before you purchase.
This is where we draw the curtains on today's guide. Read Our Next Post for More