Understanding Travel Insurance Benefits
Whether you are traveling abroad for the holidays or a study abroad trip, purchasing a travel insurance plan for yourself is a wise choice to protect yourself against unfortunate things that can happen while traveling. Understanding travel insurance benefits can help you choose the most appropriate plan to cover what you care about most.
Travel insurance can include a wide range of travel benefits. The most two common types of travel insurance include trip cancellation insurance and travel health insurance. While, both trip cancellation and travel health insurance may provide some similar travel benefits, trip cancellation insurance puts an emphasis on protecting your travel cost while travel health insurance puts an emphasis on coverage medical expenses and therefore provides more comprehensive medical coverage.
Common Benefits for Travel Insurance Plans (Health and Trip)
The following benefits are commonly found on both types of travel insurance:
- Accidental Death &
- In case of death or if you lose a limb due to an accident while traveling, the Accidental Death & Dismemberment benefit will provide a defined amount of money to you or your beneficiary named on the policy.
- The beneficiary is the person who would receive the insurance benefit in case of death when Accidental Death is included as a benefit on your policy.
- Emergency Medical
- When traveling to remote locations where adequate medical facilities are unavailable, this benefit will provide transportation for a medical emergency so that you can receive treatment at a medical facility equipped to provide you with the appropriate medical care.
- Repatriation of Remains
- In case of death, this benefit will cover the cost of transporting the body back to your home country.
Common Benefits of Trip Cancellation Travel Insurance Plans
If you are concerned about protecting your travel cost, trip cancellation insurance can help. Here are the most common travel benefits found in trip cancellation plans:
- Trip Cancellation
- This travel benefit will protect you against unforeseen events outside of your control that result in your trip being cancelled. The insurance will reimburse you for the non-refundable cost of the trip that you have already paid for. These events may include things such as a severe sickness, injury, flight cancellation due to severe weather, natural disaster, traffic accident while en route, etc.
- Trip Interruption
- Similar to trip cancellation, trip interruption protects you after you have already left on your trip. It covers the cost of your return trip and non-refundable trip payments in case of unforeseen covered event. This typically includes an event outside of your control such as a death or sickness of a family member, strike, bankruptcy, etc.
- Trip Delay
- If case you are delayed en route to or from you trip for a certain amount of time, the trip delay benefit will reimburse you for expenses such as accommodations and transportation so that you’ll be able to rejoin your scheduled trip.
- Cancel for Any Reason
- Typically found as an optional add-on in a trip cancellation policy. While the standard trip cancellation benefit only covers you in case of specified uncontrollable events, adding the Cancel for Any Reason benefit allows you to be reimbursed for a cancelled trip outside of the listed reasons on the policy.
Common Benefits of Travel Health Insurance Plans
If your main concern is about getting medical treatment in case you get sick or injured on your trip more than just in case of a life threatening emergency, choosing a travel health insurance is a good choice. Here are the most common benefits found in travel health insurance plans:
- Policy Maximum
- This is the maximum limit that the insurance plan will pay out for all the covered benefits paid out on your policy. Choosing an adequate policy maximum is important because you don’t want your policy to maxed out before covering your medical treatment.
- This is how much you pay out of your own pocket first before the insurance will pay toward any remaining expenses. In most cases, you can choose to buy a plan with or without a deductible. Be sure to check if this is a per visit, per year, or per condition deductible.
- Outpatient Treatment
- This refers to medical care that you may receive by a doctor, clinic or hospital that does not require an overnight stay for treatment.
- Inpatient Treatment
- This refers to medical treatment that you receive at a medical facility that requires you to be admitted for at least 24 hours (at least one overnight stay).
Understanding travel insurance benefits is crucial to choosing the right insurance plan. Ask yourself, what am I looking to protect? If you are primary looking to cover your expensive trip, we recommend the RoundTrip plan that includes travel benefits such as trip cancellation, trip interruption, trip delay, etc. If you are more concerned about an emergency expenses in case you get sick or injured, our Atlas Travel Plan would be a better suited option.