BASICS
To keep yourself worry-free and happy while traveling, purchase travel
insurance cover. If an illness, accident or sudden change in plans
forces you
to cancel or interrupt travel plans, you face two major financial
losses - money you've invested in non-refundable prepayments, and
medical expenses that aren't covered by your health insurance. Most
regular health insurance plans do not provide coverage abroad. You
should discuss the type of travel insurance coverage you will need with
your travel
agent. Examine different policies, make careful inquiries and always
read the fine print. Two features are essentia for a travel insurance
providerl: a 24-hour, toll-free
phone assistance and a plan that provides direct, immediate payment to
the medical provider. If you travel frequently (many times a year),
then it may be wiser
to take an annual travel insurance policy rather than many individual
ones. Taking into consideration recent world events, you should also
enquire how your travel insurance covers you in case of a terrorist
situation, kidnapping or worse. Make sure your travel insurance
coverage
allows you a reimbursement if you cancel a trip due to a war or
terrorist acts in the country you are visiting and exactly how this
works.
TYPES
OF TRAVEL INSURANCE COVERAGE
The coverage and limitations of each type varies depending on the
insurance company issuing the policy. The following is a brief
description of some of the general types of travel insurance services.
Trip
Cancellation: The most important and common type of travel
insurance. Generally covers non-refundable payments or deposits if a
trip is canceled or interrupted due to unforeseen circumstances like
the following ones: you, your travel partner, or a family member cannot
travel due to sickness or a list of other acceptable reasons; your tour
company or airline goes out of business or can’t perform as
promised; a family member at home gets sick, causing you to cancel; for
a good reason (such as a car accident or inclement weather), you miss a
flight or need an emergency flight. It's smart to buy your travel
cancellation insurance
policy within seven to 21 days of the date you make the first payment
on your trip. Travel cancellation travel insurance policies purchased
later
than this
cutoff date
(as
determined by the insurance company) do not cover default of carrier
(if your airline or tour operator goes out of business) or pre-existing
medical conditions (if you or an immediate family member has a known
health problem). Note that some travel cancellation insurance does not
cover certain travel
companies, especially those under bankruptcy protection. Always read
the fine print to see what's covered (e.g., how they define "travel
partner" or "family member", your great-aunt might not qualify). The
cost for travel
cancellation insurance varies, but figure around 5 to 10 percent. Two
factors can increase this cost: age (rates increase dramatically for
every decade over 50) and duration of trip (longer trips cost more to
insure).
Trip
Delay: Provides reimbursement for expenses incurred when a
trip is delayed.
Accident/Sickness
Medical Expenses: This type of travel insurance covers
costs incurred due to injury or
illness that occur while on a trip. Before buying a travel accident
insurance
policy for your trip, check with your medical insurer you might already
be covered by your
existing
health plan. Find out about benefit caps and deductibles
(if any) and the procedure for reimbursement of emergency expenses.
Generally, your expenses are out-of-pocket and you bring home
documentation to be reimbursed.
Pre-existing
conditions
are now generally covered in accident and travel
cancellation coverage (depending on how recently you've been treated
for the condition), but check with your agent or insurer before you
commit. Declare any pre-existing conditions both for you and any
relatives at home. In most cases a travel accident insurance policy
won’t provide cover if you fly home early because a relative
was being treated for a pre-existing condition and dies as a result of
that condition. In many policies, a pre-existing medical condition is
regarded as any condition for which you have been to see a doctor or
taken medication in the previous month before you buy travel insurance.
Some policies may not provide cover if the relative is over a certain
age. Travelling companions (not a family member) are normally covered
for breaking their trip if you get sick or vice versa but again you
must declare if your companion has a pre-existing illness at the time
of taking out the policy. Disinclination to travel is not covered. If
you are planning some
high risk activities during your trip such as bungee
jumping, sky diving, white water rafting, or even some less risk
activities such as diving, water skiing, jet skis etc, be sure to ask
whether these are covered by your travel accident insurance policy. For
the USA, Japan and
Europe, make sure you have unlimited cover for hospital and medical
costs - $500,000 is not uncommon for medical expenses in the United
States.
Medical
Evacuation/Emergency Transportation: This type of travel
insurance covers transportation
when a medical emergency while traveling requires transportation to a
hospital or other medical facility. It can be extremely expensive and
is usually not covered by regular medical insurance. If you want this
coverage, ask the insurance company if it covers your flight home or
simply to the nearest hospital.
Supplier
Default: This type of travel insurance covers deposits or
payments lost due to
the financial default of a travel supplier.
Baggage/Personal
Effects Loss or Delay: This type of travel insurance
covers losses due to items lost, damaged or delayed during a trip.
Usually included in most
travel insurance policies. Almost always puts a strict cap on
reimbursement for such items as jewelry, eyewear, electronics and
photographic equipment -- read the fine print. If you check your
baggage for a flight, it's already covered by the airline (generally
with a cap of $1,500-$3,000).
