Travel Insurance Reviews FAQ
One of the most enjoyable parts of vacationing is encountering something unexpected. Finding a beautiful out of the way hotel, viewing a great piece of art, discovering a lively festival, or finding other new discoveries are great. However, when you run into something unplanned that is dangerous, expensive, or painful you will be glad you have travel insurance.
The following are the ten most often asked questions about travel insurance:
1. What is travel insurance?
Travel insurance is an insurance policy the covers you financially if an unforeseen loss occurs either before you leave for your vacation, or while you are on it. Coverage can include emergency evacuations, unplanned medical expenses, trip cancellations, lost luggage, missed flights, and more. Travel insurance is very helpful when things go wrong, whether you are traveling to a foreign country or vacationing in one of the 50 states.
2. Why do I need travel insurance?
Like all insurance policies, travel insurance helps manage risk. If something unexpected happens while you are traveling, you will be covered. Maybe the best reason to purchase travelers insurance is to protect your monetary investment in the event your trip is cancelled. In addition, it will provide logistical and financial assistance if you need medical help, your travel is interrupted, you lose your luggage, require help abroad, and much more.
3. Won't the insurance coverage I already have be enough?
Probably not. Private health insurance is usually limited to the United States. For senior citizens, Medicaid will not cover medical expenses incurred outside of the US. Any coverage offered by credit cards is not nearly is comprehensive as travel insurance.
4. How much does travel insurance cost?
Typically, travel insurance coverage that includes cancellation insurance will cost between 5-8% of the trips total cost. This may sound expensive, but think about how much it would cost if you have a medical emergency that is not covered by insurance, or even if your entire vacation was cancelled. Travel insurance is not free, but like all insurance plans, it provides protection against a major financial loss.
5. When is the best time to purchase travel insurance?
Ideally, right after making any deposits for your trip. This gives you the maximum coverage against your vacation being cancelled. In addition, some benefits are offered only when you purchase the policy within 10-15 days of booking the trip.
6. Are terrorist attacks covered by travel insurance?
Most policies cover terrorism as a reason for cancellation. The attack must have occurred in a city on your itinerary within a short time period before your scheduled departure (30 days is standard, but sometimes as low as seven). The best thing to do if you are concerned is to add a "cancel for any reason" benefit to your policy; this allows you to cancel your vacation with no major financial loss at anytime within the policies allotted time period.
7. What if we need medical attention – can travel insurance help with that concern?
Coverage is included for medical treatment and for emergency medical transport (evacuation). Medical procedures are expensive anywhere, and your health insurance likely only covers incidents that occur domestically. If someone in your party was to be injured and require emergency evacuation and you do not have the necessary coverage, you could be on the hook for a very large expenditure. Travel insurance will also assist and provide foreign language translation to help locate the closest medical facility.
8. Should I buy insurance from the cruise line or an independent company?
Cruise lines sell their own polices as a way to make extra money. Be aware that the plans will not cover tour operators, airline tickets, or excursions off the ship; only the cruise itself is covered. Also, if you end up making a claim, you could learn that the only thing you are eligible to receive is non-transferable credits that must be used within one year, and are only redeemable on the cruise line you were using.9. I have an existing medical condition – can insurance provide medical coverage for me?
Most plans will offer a waiver that excludes any pre-existing, or current medical conditions. Specific criteria must be followed, such as paying for your coverage soon after you make the first payment towards your trip, and buying coverage that will cover the total cost of all non-refundable expenses. If you need to cancel or prematurely end your trip because of the pre-existing condition, you will need to provide medical documentation of the occurrence. Ask your insurance provider for more information about your specific circumstances.
10. If I lose my job, can travel insurance help me recover my pre-paid expenses?
Many plans offer coverage for this scenario, though only is you or a member of your party loses their job through no fault of their own. Some policies will offer an optional benefit called "cancel for work reasons", this adds job related reasons for cancelling your trip to your coverage. Job relocation, lay-offs, mergers, and more are included, depending on the policy. Also, a "cancel for any reason" benefit is helpful if you are worried about losing your job, however, these are more costly.
