Insurance, Travel insurance

Travel insurance coverage plan reimbursements

Trip cancellation, trip interruption, and emergency medical coverage benefits are due to you as they have travel costs implications.

Why should you be concerned about travel insurance? Well, it is for the same reason you have to cover your house in case of a fire or a flood.

Travel insurance has several benefits that will help you recover your lost items, or recover costs of flight tickets. Reimbursement for your vacation accommodation costs should be part of your insurance coverage plan.

trip cancellation, benefit
Trip interruption vs Trip cancellation. Photo by Elizabeth French from unSplash

Trip Cancellation

Normally you may have to cancel a trip due to illness, your travel companion being ill or a family member being ill right before you take the trip. Others may involve the death of the host at your destination. Terrorism at your destination location, severe dangerous weather, or disruptions at your vacation residence form part of the benefits on the coverage plan. Others include loss of a passport due to theft as you cannot travel without one or an assault causing you or your travel companion to no longer be able to travel.

trip interruption, reimbursements
Will you be reimbursed for booking an earlier return flight ticket? Image by JC Gellidon from unSplash

Trip Interruption

Unlike trip cancellation, trip interruption takes effect once the traveler has begun their trip. The interruption occurs once you are on the trip and an example could be a burglary in your house which compels you to return home immediately. The travel insurance plan also reimburses you for a return flight ticket you have to book for an unplanned earlier return flight. This coverage is not automatically part of the initial trip cancellation coverage. There are various plans which reimburse you for the travel costs ranging between 100 and 150 percent.

Emergency Medical Coverage

There are two types which are the Primary and Secondary insurance coverage. With primary coverage, the claim will be paid first whether there are other insurance coverages the traveler has. The secondary coverage pays the claims from the traveler after they have completed filing with their primary insurance provider. Important to note that normally travelers are required to pay for the emergencies immediately from their own pockets ad the insurer will pay at a later stage. There are very rare cases where the insurer pays the claim immediately.

Other benefits covered by travel insurance which include and are not limited to, are accidental death, medical evacuation, hurricane and bad weather, and loss of personal items.


Why you need travel insurance

Travel insurance is one of the most overlooked types of insurance. In some parts of the world like Asia and Africa, insurance as a whole is seldom considered important in any way, instead, insurance and its agents are treated with skepticism and apathy. In other parts of the world like Australia, South America, North America, and Europe, the concept of insurance is grossly welcomed. Perhaps, this is due to the professionalism of the practice and advanced knowledge in these parts.

Travel insurance is a type of insurance that focuses on covering contingencies that may occur during travel time including medical expenses, trip cancellation, lost luggage, flight accident and other losses incurred while traveling, either internationally, or domestically. Travel insurance seeks to compensate the insured traveler for these incidents that may or may not occur due to travel.

Travel insurance

Overseas travel insurance provides complete protection, as well as a sense of security, while you are on a foreign land. The premium for travel insurances are often about 5%-7% the cost of trips, although fees vary with age and medical history. Money polices include coverage for children with no extra charges. 

Travel insurance can cover medical expenses; medical treatment, including transportation to the medical facility. The policy also covers trip cancellations in the sense that, if one has already paid for a trip and needs to cancel for one reason or the other, travel insurance may cover trip cancellation and trip interruption for the pre-paid or non-refundable portion of transport fare.

Illustration depicting a sign with a travel insurance concept.

However not all policies cover trip cancellation. Also, if the insured traveler losses his/her checked luggage, the policy will cover this loss and provide equal compensation. Travel insurance may also provide travel assistance services which will ease the process for the insured. Some of which include booking and payment. Travel insurance can also cover for disruptions to your trip; these disruptions are much out of your control and can end up costing you a whole fortune.

Travel insurance also helps ease your mind as you relax and enjoy your trip. The thought of knowing you have protection in case of any mishaps is so refreshing. Travel insurance has different policies and specific benefits, inclusions, exclusions, exceptions and limits. It should be noted that not all travel insurance is the same. It is very important to take time to read the policy wordings carefully to know what you are paying for.