- Travel insurance is not mandatory for travelers
- The insurance plan protects travelers from losses and financial risks
- Travel insurance needs to be purchased early enough to maximize on the coverage
- Anyone who cannot afford to lose the money they have invested on the trip needs to buy an insurance plan
Most people are familiar or have had experience with health insurance, car insurance, or home insurance. Travel insurance is not as popular as other types of insurances because most people do not understand how it works. Different people understand travel insurance to mean different things. Generally, insurance helps protect one from unexpected events such as loss of any kind, theft, injuries, and health-related issues. Unlike mandatory car insurance, travel insurance is elective, meaning that it is upon an individual to decide whether or not they want it. However, insurance experts recommend that every traveler needs to have travel insurance.
What is Travel Insurance?
Travel insurance is an insurance plan purchased by travelers to protect them from certain losses and financial risks while traveling. Some of these unexpected events that may occur during a trip may be minor such as misplaced luggage or extreme such as trip cancellation, luggage loss, a medical emergency, or delayed flights among other events. Ultimately, travel insurance is meant to enable the traveler to focus on the trip and travel with peace of mind. The benefits of travel insurance vary by plan and company. Some plans cover only specific situations while other plans cover a wide range of events.
How Does Travel Insurance Works?
Travel insurance works in similar ways as car and home insurance. In case of an unexpected event in the course of travel, one is expected to file a claim for reimbursement. Filling a claim means providing necessary proofs of loss to the insurance company. Once the claim is filed, the insurance company will investigate to verify what happened before they can reimburse the traveler for the covered losses. The number of days taken to process the claims varies with the company and the time it takes to verify the claim.
When Should One Buy Travel Insurance?
According to financial and insurance experts, a traveler should purchase a travel insurance plan immediately after making their first trip payment if they want to maximize their coverage period or if they would want to be eligible for pre-existing medical condition benefits. The earlier travel insurance is purchased, the larger the coverage window one has. Some companies have a minimum period after which it is not possible to qualify for certain coverage. Some companies offer annual travel insurance plans for their clients. This plan allows frequent travelers to purchase travel insurance that will grant them protection throughout the year.
Is Travel Insurance Necessary?
Now that we have an understanding of what travel insurance is, how it works, and when it should be purchased, the next issue is whether or not it is necessary. Several factors need to be considered before determining if travel insurance is necessary. Some of these factors are the destination, the person traveling, and the cost. A person who cannot afford to lose the money they have invested in the trip will probably consider travel insurance necessary. Those who are traveling to remote places and may require emergency transportation or medical treatment while away from home may choose to purchase a plan. Otherwise, those who do not want to incur additional expenses on their trip will choose to forgo travel insurance.