The purpose of trip insurance is to protect you financially in the event of canceled flights, medical emergencies or other unexpected situations. There are several types of travel insurance plans, and it can be confusing to choose one if you don’t know what each type covers. Clear up your confusion by reading the below overviews of each type. Once you understand the main differences between these plans, you can begin comparing plan coverage and prices between insurance providers.
Travel Accident Insurance
The purpose of this insurance is to provide term life and accidental death and dismemberment protection for you and your family. This covers unexpected and sudden losses that occur because of travel or flight accidents. Some other emergency assistance benefits might cover baggage loss, evacuations, medical and dental expenses, pre-existing medical conditions and repatriation. The benefits apply while you are on a trip that is insured or during the coverage period. This type of trip insurance is ideal for frequent world travelers, particularly those who visit risky regions.
Travel Medical Insurance
General health insurance doesn’t protect you when you travel abroad, but travel medical insurance acts as a sort of extension to cover medical, dental and evacuation costs during your travels. This trip insurance is very affordable because it doesn’t cover a host of other incidentals such as trip cancellations. However, some plans include benefits for delayed or lost baggage or delayed trips. You can usually purchase travel medical plans for a single trip or multiple trips over a certain period.
Medical Evacuation Insurance
This type of plan focuses on covering the cost of evacuations and repatriation. If you are hospitalized while traveling with your family, it may cover the cost of an emergency medical reunion and the return of any minor children home. Some plans may also provide term life and AD&D benefits to protect your family as well as coverage for lost luggage, adventure sports and trip interruptions.
Package Travel Insurance
Compared to travel accident, evacuation and medical insurance plans, package travel insurance is much more comprehensive, which is why it’s the most commonly purchased. Package plans are customized according to the different needs of various travelers. A typical plan includes coverage for evacuations, luggage problems, medical and dental costs, returning minors home, and trip cancellations, delays and interruptions. Some plans also cover adventure activities, credit card and passport services, identity theft assistance, pet care, pre-existing medical conditions, rental car collisions, roadside assistance and sports equipment.
Annual and Specialty Travel Insurance
Annual travel insurance is similar to package travel coverage, but instead of covering a single trip, it covers all of your trips for an entire year. Some of these plans are renewable. Specialty travel insurance provides coverage for certain aspects of a trip, such as car rentals and term life, to supplement the benefits that you already receive. This type of plan is ideal when you are concerned about a specific risk.
In general, you need travel medical insurance for medical emergencies and package travel insurance to cover trip cancellations. Since the specific benefits or coverage differ so much between plans and providers, it’s important to read the terms and conditions of each before buying trip insurance.
The Basics of Travel Insurance
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