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Do I Really Need Travel Insurance?

NickFeb 10, 2015

Do you need travel insurance? This is a question that is commonly asked by travel agents among tourists or travelers planning to go on extended trips and holidays here or abroad. But what exactly is travel insurance and do we really need it?

Unlike most insurance policies such as life or home insurance, travel insurance is something that is not commonly discussed because travelling abroad is not something that everybody enjoys but rather a privilege. But for those who find themselves lucky enough to be traveling abroad or do this for a living, then travel insurance might be something you might want to consider.

There are three major types of travel insurance; an entry-level plan, mid-level plan and premium plan. In general, mid-level plans provide the best balance between price and coverage while entry-level plans only cover basic items such as trip cancellation or interruption.

How much insurance can I afford?

You get what you pay for but you might be surprised that similarly priced plans being offered by different companies also vary in the number of items it covers. Just like any product the price of any plan plays a considerable part in the mind of consumers. Prices vary but some factors influence how much your premiums would cost. Age, destination and length of travel are just some of the common considerations. The amount of covered items and benefits are also important. Estimates for travel insurance range in the 5 to 10 percent of trip costs or around $500 to a $1000 for a $10,000 trip.

What type of holiday am I going to?

After deciding how much you could spend on travel insurance then it’s time to understand what type of protection this could buy you. There’s no use purchasing a cheap travel insurance policy when it’s only worth its value in paper. Each trip is different and the number of things that could go wrong is unique to the trip. Some travel insurance companies offer coverage for adventure trips where the likelihood of injury is high. Some destinations are considered high risks due to political or geographical location so expect premiums to be higher.

What does it cover?

Trip cancellation and interruptions are standard items covered in any trip insurance policy. However, covered items in each plan vary accordingly. Travel insurance comes highly recommended for some travelers especially for those going on special trips or extended vacations.   

How much am I covered for?

After choosing the plan which provides the right amount of coverage, understanding how much compensation you’re entitled follows. Does your travel insurance cover the entire cost of the trip? You should not only look into how much medical cover are you receiving but also if it requires a primary medical insurance. Some of the items covered under travel insurance are already included in your airline ticket. Items such as lost baggage or medical cover for dismemberment and death.

Why travel insurance?

Travel insurance just like any other insurance policy serves to protect you financially against any medical expenses or any type of damage incurred during your trip. While travel insurance has been available for a while, the number of covered items has significantly improved over the years. This makes it easier for any traveler to find a policy that meets specific needs and budget concerns.