What Is Travel Insurance and Why It's Important

What is travel insurance? Taking some days off and finding the perfect destination to enjoy your vacation is incredible, right? But, not everything is perfect, and sometimes there may be accidents and many unforeseen issues.

Lost luggage, for example. Also, you may need medical assistance during the trip. Those are things nobody wants to experience, but if they happen, it's important to be prepared. Travel insurance was created to help you in those unfortunate situations. Check out the article to know more about it 

What Is Travel Insurance?

Travel insurance is a service you hire when you go on a trip to cover possible issues like lost luggage, delayed or canceled flights, medical assistance, damages caused by natural disasters, and other problems.

Travel insurance serves as a safety measure in case of having to face any of the problems mentioned above. Since the insurance will cover the financial costs, provide assistance services, access to emergency care, and other benefits depending on the plan you choose. 

Besides, many countries require travel insurance to enter it. For example Israel, Jamaica, Nepal, and Schengen countries which include places like Austria, Spain, Italy, Netherlands, and Norway, 

Why Have a Travel Insurance

Travel insurance is the type of service that nobody wants to use, but it makes a huge difference when it's needed. Now that you have the answer to the question "What is travel insurance?", its importance is self-explanatory.

When you are in a foreign country, if anything happens to you, travel insurance is the guarantee that you will have the assistance you need. Without it, you may suffer financial loss, or even have to pay a big amount of money to go to a hospital and have proper medical care. 

With travel insurance, you know that you can count on coverage for different types of problems, which avoids many difficult situations. Your trip doesn't need to end because of a flight cancellation or lost luggage, for instance, if you have travel insurance, all you need to do is use its benefits. 

Besides, as mentioned above, in several countries only tourists who have travel insurance can enter. The rules about this have become even more rigid before the Covid-19 pandemic. 

What Travel Insurance Covers

The travel insurance coverage varies according to the company and plans you opt for, but most of them include:

Trip Cancellation or Interruption

Most travel insurance plans offer coverage when you need to cancel or interrupt a trip for reasons like illness, death in the immediate family, or weather issues such as a hurricane or earthquake warning. The travel insurance will reimburse costs that don't offer a refund, such as flights, or accommodation. 

Travel Medical Insurance

The type of health coverage offered can be short-term or major, depending on how long your trip will be. The medical coverage not only helps to pay part of the medical expenses but usually offers other types of assistance like airlift travel to a hospital and emergency medical evacuation.

Baggage Loss or Damaged Belongings

If your luggage gets lost by the travel company or is stolen, travel insurance provides you with an amount of money so you can replace the items. They may also reimburse you if any of your belongings are damaged. However, there are several rules to determine if you can receive a refund or not. 

Flight Accident

In the case of a flight accident where the person gets severely injured, they have the right to receive the insurance policy. If the person dies, the policy must be paid to the beneficiary. If you already have life insurance, it will be covered by this as well.

What Travel Insurance Doesn't Cover

There are some situations, though, that most travel insurance doesn't include in their policy: 

• Adventure sports practice
• Preexisting health conditions
• Missed flights because of being detained at customs
• Events like civil unrest, acts of terrorism
• Luxury items 

How Much Does Travel Insurance Cost? 

The travel insurance price may vary a lot according to the type of coverage you choose. There are premium coverages where the policy includes a wider range of benefits, for example. 

Some credit cards provide travel insurance for their users without any extra cost or at a reduced price. You will need to evaluate what is best for you, but always make sure to read everything in the contract. 

SafetyWing

Safety Wing is a company specializing in travel and health insurance. Its Nomad Insurance plan covers travel medical insurance for people all around the world. You can make a long trip and count with several benefits. The plan covers: 

Medical 

• Hospital
• Room and nursing services
• Intensive care
• Up to the overall maximum limit
• Ambulance
• Usual, reasonable, and customary charges when covered illness or injury results in hospitalization
• Urgent charges
• $50 co-payment, not subject to deductible.
• Physical therapy and chiropractic care
• Up to $50 per day. Must be ordered in advance by a physician.
• Emergency dental
• Up to $1,000. Not subject to deductible.
• All Other Eligible Medical Expenses
• Up to the overall maximum limit.

Travel

• Trip interruption
• Up to $5,000. No deductible
• Travel delay
• Up to $100 a day after a 12-hour delay period requiring an unplanned overnight stay. Subject to a maximum of 2 days. No deductible
• Lost checked luggage*
• Up to $3,000 per certificate period; $500 per item. Up to $6,000 lifetime limit. No deductible.
• Natural disaster — a new place to stay
• Up to $100 a day for 5 days. No deductible
• Political evacuation
• Up to $10,000 lifetime maximum. Not subject to deductible
• Emergency medical evacuation
• Up to $100,000 lifetime maximum. Not subject to deductible or overall maximum limit.

Choose The Best Travel Insurance for You

Now that you know what is travel insurance and how it's important to count on one when you are traveling, include it on the budget for your next trip. Before choosing travel insurance, evaluate carefully what each one covers, and be attempted to the minimal details. Pay attention not only to the price but what guarantees and benefits the travel insurance offers.