For Rahul and his family, their first foreign vacation to Mauritius was like a dream come true. However, the fun did not last long. A few days into the vacation, Rahul’s mother started having severe anxiety. She was immediately rushed to a nearby hospital, where doctors diagnosed it as a hypertensive crisis and advised her to get hospitalized immediately. The fun of the vacation ended as Rahul had to run from pillar to post to arrange funds for the medical treatment. Rahul could have easily averted this unexpected ‘expense’ if he had bought a travel insurance policy before starting his journey.
Travelling to a new place is an experience which is always filled with fun and pleasure. However, travel comes with its fair share of risks and uncertainties as well. Just imagine, you are diving in the crystal blue waters of Playa Paraiso, Cuba, exploring the beauty of the real beacon of Paris, “Eiffel Tower” or just sipping the scenic beauty of Switzerland! Then all of a sudden, a severe headache hits you, or you lose passport or baggage in a train or you meet an accident. And all this while you are abroad.
You might be thinking why I want you to imagine about accidents and losses during your vacation? Unfortunately, you can’t completely rule out the possibilities of risks and unforeseen dangers even if you are on a leisure trip. So, what should you do to avoid unfortunate incidents during the journey? Avoid overseas vacation? No, buy a comprehensive travel insurance policy before your next voyage.
What exactly will you get in a travel insurance policy?
The most common risks covered in a travel insurance policy are:
- Baggage loss
- Loss of passport
- Personal accident
- Medical treatment
- Natural disasters
- Flight delay/Missed flights
- Cancelled trips
As an empty house is an open invitation to thieves, some travel insurance policies also cover your house against theft or burglary when you are away on a foreign tour.
Must have Covers
In some cases, having a travel insurance policy with medical coverage is a mandatory prerequisite for entering a country. For instance, a certain health insurance is required to enter the Schengen Area, which includes 26 European nations.
Even if a medical cover is not compulsory in the country you wish to travel, it is important to buy travel insurance as the medical treatment cost can be high abroad. Any medical emergency, while you are on a foreign trip can drain your finances.
Types of travel insurance policies
Mainly, travel insurance plans can be broadly segmented under the two heads: (a) domestic insurance for travelling within India (b) international insurance for travelling overseas. Several other travel policies are covered under these heads:
- Student Travel Insurance: It is for those students who are travelling abroad for pursuing higher education.
- Family Travel Insurance: It insures all the family members who are going on a domestic or foreign trip.
- Senior Citizen Travel Insurance: It is the policy to cover senior citizens between the age of 71 and 85 years.
- Corporate Travel Insurance: The policy is bought by a company for insuring the domestic and foreign travelling of its employees.
Choosing the right travel insurance policy
Follow the below guidelines to buy the right travel insurance cover:
- Purpose of the journey: Your choice of travel policy depends on your purpose of travelling—business, leisure, adventure or any other. Usually, a basic travel policy doesn’t cover the risks involved in adventure trips.
- Travel destination: As medical costs are high in countries like the USA, UK, or any nation in Western Europe, it is necessary to go for a higher insurance coverage even if it means spending more on premium.
- Travel duration: Check how many consecutive days are covered under the policy. Go for the tenure slightly higher than your travel duration because the policy will become invalid if your stay exceeds even by a day from what was mentioned in the policy document. Alternatively, there are some travel insurance policies which allow you to extend the policy in case your trip gets extended.
- Extent of coverage: In addition to the inclusions of the policy, one must also check how much will be the coverage under each head. For instance, some policies may put the maximum coverage amount for loss of checked-in baggage as USD 500. So carefully evaluate all plans before choosing the one which offers extensive coverage.
- Pre-existing health ailments: While it is tempting to hide medical conditions, the insurer can reject your claims in case of concealment of facts. So, at the time of filling the insurance form, declare all the details at the initial stage itself. If the policy/application form is silent on this, talk to the insurer to get more information about this. Generally, insurers do not cover pre-existing medical conditions. However, there are certain travel insurers, which offer coverage with caveats.
- Age of travellers: If you are travelling with your family, it is necessary to choose between a single plan for all family members or individual plans for each member. For instance, if you are above 65, you can go with senior citizen travel insurance plans in which you will get pre-existing illness coverage, and a higher sum insured.
Solicitous and Comfort
Right from newborn to octogenarians and older people, there is no dearth of travel insurance plans that come with a tagline— “no entry age-limit”. Further, some insurance policies are flexible enough to suit your divergent needs on the basis of continent or region you intend to visit.
Some insurers also offer cover in Euros if you are travelling to Europe. If you are a frequent flyer, multi-trip travel policy is an apt choice for you.
In the true sense of the word ‘solicitous’, a few insurers also upgrade you to business class if you are wounded or unwell during travel. Further, some insurers make arrangements to fly your minor kids back home in case they are travelling with you and you need immediate hospitalization in a foreign country. If your spouse or a relative travel to be your side, the insurer will pick the tab for that too!
If you have already made your way to the airport without travel insurance, don’t panic. You can buy travel insurance online in a matter of seconds. Make sure you are correctly putting all the information related to your journey without hiding material facts.
Conclusion
A travel insurance plan will not prevent the occurrence of an untoward event during travel. But, it can reduce the financial impact of that unfortunate event. So, before you step out for your next vacation, make sure you have a travel insurance policy in your suitcase!
The post has been contributed by Twisha Bhatti. Twisha is passionate about personal finance and loves to write about insurance and investments. She can be reached at Twisha.bhatti@gmail.com. The views expressed are personal.