Is Travel Insurance Confusing to You?

By W K Vandiver

I have found that the best way to make travel insurance simple is to begin by breaking it down into the various types of what most people think of when considering Travel Insurance.

Basic types of travel insurance:

-Trip/Cancellation Insurance
-Emergency Evacuation Insurance
-Travel Medical Insurance

First let's look at Trip/Cancellation Insurance. This is what most people think of when you say Travel Insurance, it will pay up to some maximum amount if you trip is cancelled or interrupted for a specified reason plus there are normally quite a few other very valuable benefits on good Trip/Cancellation Insurance policies.

Here are some of the things which could be covered:

-Trip Cancellation/Interruption: The covered reasons for a trip cancellation/interruption will be pretty specific and if your trip is cancelled or interrupted for one of the covered reasons you will be reimbursed, if not, you will not be reimbursed. Among the normal covered reasons for cancellation or interruption include; emergency illness, injury or death, financial default of your travel supplier, terrorist incident, the list can go on and on so it's important for you to read the Benefits section of the policy to determine exactly what he covered reasons are.
-Travel Delay: pays for a number of reasons also, among them are; travel supplier delay, natural disaster, medical quarantine and as before there can be any number of reasons.
-Baggage and Personal Possessions: usually includes damage to, loss of or theft of your checked or stored baggage by a common carrier or while stored with your hotel.
-Baggage Delay
-Emergency Medical/Dental expenses
- Emergency Medical Evacuation/Repatriation is used when there is an emergency medical incident, then usually the policy will pay reasonable expenses for evacuation to the nearest adequate medical facility. It also usually pays for reasonable expenses when you are confined in a medial facility.
-Emergency Reunion or Return of Mortal Remains is a benefit we all hope you will never have to use but is a really great benefit when needed. It covers things like: return of minor children or grandchildren, transportation and lodging for family members, etc. Be sure to look at the benefits of your policy to see exactly what is covered.

Common Carrier Accidental Death and Dismemberment

Again let me say read the Benefits section of the Trip/Cancellation Insurance plan you are considering as the complete list of benefits and exclusions should be listed there. Each Trip/Cancellation Insurance policy has slightly different benefits and the cost will vary from company to company. But keep in mind that cheaper is not always better.

Most plans are available with different levels of benefits; basic, normal and the highest level of coverage. The cost of trip cancellation insurance varies depending on the company issuing the policy as well as the benefit level. Generally it is from 4% to 10% of the cost of your trip. Usually there is a minimum trip cost (for example $500).

So, to sum it all up, if you and a companion are going on a trip and the total cost is $2000 each, your Trip/Cancellation Insurance cost should be from $160 to $400 depending on what your ages are.

Well, that's about it for Trip/Cancellation Insurance, next we'll take a look at another type of Travel Insurance called Emergency Evacuation Insurance.

W K Vandiver is the owner of a number of Travel Insurance and Global Medical Insurance websites.
For further information about Travel Insurance please visit our website.

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