There was a time when travel insurance was seen as a luxury. Now, travel insurance is an essential part of all tour and trip plans. Travel insurance, like other forms of insurance, has seen phenomenal growth in business over the years. There are different products and services that are offered by travel insurance firms and their finer details can be spell binding for the regular traveler.
If you are suitably covered under travel insurance, then there is no need for panic. However it is important to ascertain the financial strength of the company offering travel insurance because if a travel insurance organization is not able to pay the future claims or benefits promised in the plan, the very purpose of buying the insurance is lost.
There are ratings that indicate the financial strength of a travel insurance company and a reputed travel insurance company markets the programs that are underwritten by reliable insurance companies.
Hence before signing up for a travel insurance scheme it is essential to:
- Determine the extent of coverage for each segment along with the reimbursement amount
- Determine the deductible and ensure that the up-front payment is within acceptable limits
- There are some insurance plans that require payment of medical expenses and other bills before reimbursement. Therefore it is necessary to understand the terms of payment
- Since credit cards sometimes provide insurance coverage with the purchase of airline tickets it pays to check all avenues before finalizing a deal
Travel insurance essentially covers two areas:
Individual travel insurance
Such trips are designed for a single trip and cover the traveler just for one trip
Annual travel insurance or multi-travel insurance
For people undertaking frequent trips availing the annual travel insurance or multi-travel insurance is advantageous.
Annual travel insurance policy is cheaper than several single-trip insurance schemes and one can save on the time and effort involved in processing individual travel insurance policies.
Most annual travel insurance policies allow a person to travel as many times in a year but confine each trip to the number of days specified as per the policy.
Annual travel insurance plans are best suited for families as yearly travel insurance for a couple is cheaper than policies for 2 single adults. Moreover such policies also cover children under 18 with their parents.
Annual travel insurance also provides 24 hour access to medical referrals and assistance and provides cover against accident, medical expenses, including emergency medical transportation, lost or damaged luggage, travel delays or missed departure and legal expenses and personal liability.