There are dozens, if not hundreds of types of insurance in the world – insurance designed to help manage risk for all different types of situations and scenarios. Sometimes insurance is mandated by laws and regulations (the most common being auto insurance), other times it is required by certain institutions (such as homeowners insurance being required by mortgage companies), and still other types are completely elective.
Today, we’re taking a look at an elective coverage – Travel Insurance – and how it can benefit you if you’re taking a trip and looking for peace of mind.
What is Travel Insurance?
Travel insurance is coverage that can be obtained when you are planning a trip, whether it’s domestic or international, to help provide some security that if something goes wrong, you’ll have help to handle anything that comes your way. Most travel insurance policies cover medical expenses, lost luggage, flight delays or cancellations, trip cancellation, and other expenses that might be incurred due to a mishap while away from home.
How does Travel Insurance work?
In most cases, there are two different kinds of travel insurance – a single trip policy, which can cover the exact duration of a specific trip, or a multi-trip policy, which usually covers unlimited trips within a set span of time.
If you typically only go on one big trip a year, you might be more inclined to obtain a single trip policy. This type of policy is going to be more affordable, because the risk that something will go awry during a single weeklong trip is significantly lower than multiple trips. After all, there are only two flights to cover, fewer bags, and a shorter period of time.
On the flipside, if you are a frequent traveler, a multi-trip policy might be more appropriate and more affordable to provide the protection you need than insuring each trip individually.
What else do I need to know about Travel Insurance?
The most important part of successfully utilizing a travel insurance policy is to familiarize yourself with precisely what is covered and what isn’t. Many travel insurance policies include exclusions – such as limited or no coverage for pre-existing medical conditions, or for injury or illness caused by alcohol, drugs, or reckless behavior. Knowing what exclusions exist can help you decide whether a specific travel insurance policy is right for your needs, and can help save you time, frustration, and disappointment if you are looking to file a claim for something that isn’t covered.