Before you travel to a domestic or foreign location, a great deal of planning and packing is involved. Additionally, you would like to undertake the trip within your travel budget. As per the country or the place you will visit, you should take special precautions to safeguard your health and luggage. Even though travel insurance is not mandatory in certain parts of the globe, you should protect your financial interests by buying a travel insurance plan. You should buy a plan to fulfil your insurance requirements. Hence, you are advised to buy a travel insurance plan as soon as your itinerary is finalized.
Importance of Travel Insurance Plan
A travel insurance policy covers various kind of risks associated with the travel. It will cover your luggage and travel documents as well. If you suffer from an injury or sickness during the journey or while staying in a foreign country, the travel insurance policy will come to your rescue.
If there is an eventuality, the travel insurance company will pay the compensation. You should understand the fact that a travel insurance plan will protect various kinds of risk factors. Hence, you should buy the policy to avoid your out of pocket expenses.
Hence, you should buy a policy regardless it is mandatory or not. You should buy a travel insurance plan to protect your own interests rather than the compulsion imposed by country or institution.
Benefits of Travel Insurance Plan
The following are some of the benefits that you can enjoy with a travel insurance plan:
- Trip Cancellation– If you want to cancel the trip for genuine reasons, the insurance company will pay compensation. You should buy the trip cancellation cover to make the most of your insurance plan.
- Medical Emergency– If you meet with an accident, you would require immediate medical assistance. When you are covered by the insurance policy, the travel insurance company will reimburse the bills.
- Medical Evacuation or Repatriation– If the insured needs better medical assistance; the insurance company will bear the transportation costs to travel to the other hospital. If there is an unfortunate death of the insured, the incurred expenses for transporting the mortal remains of the insured to the home country would be covered.
- Loss of Baggage– If there is the loss of checked-in baggage; the insurance company will pay the compensation. You should disclose the personal belongings to the insurance company so that they will be covered by the insurance policy.
- Loss of Travel Documents– If there is a loss of travel documents such as passport or visa, the insurance company will pay expenses to obtain a new set of travel documents.
- Flight Delay– If there is flight delay beyond certain hours; the insurance company will offer compensation. It will pay for the boarding and lodging expenses as well.
- Emergency Dental Treatment– The travel insurance policy will cover emergency dental treatment. You can buy a travel insurance policy so that the insurance company will pay the amount for the treatment to get relief from the dental pain.
- Liability Coverage– If there is damage caused to the third-party due to your negligence, the insurance company will pay the compensation to the third-party.
Travel Insurance Premium
The travel insurance policy will analyze the proposal form submitted by the applicant and the policy will be issued by offering an insurance quote. The insurance quote will be in proportion to the expected insurance coverage.
The insurance premium payable by a senior citizen is higher than a young person. The insurance company will also assess various risk factors that are relevant to the trip. The place of visit, duration of stay and type of travel will have an impact on the insurance premium. Hence, you should disclose the information properly in the insurance policy so that you will not face claim rejections.
In a Nutshell
In some countries such as the United States, having travel insurance is mandatory for anyone travelling to such countries. On the other hand, the healthcare expenses are very high in countries like the United Countries. If you do not buy a comprehensive travel insurance plan, your out of pocket expenses will be very high. Hence, you should buy the right kind of travel insurance policy to cover travel-related risks in an efficient manner.