Imagine you’re due for a vacation then you and your friends decide to go on a trip which eventually never made it out of the WhatsApp group because only a few showed commitment and your timelines just couldn’t align. You make the decision to go on the vacation alone but on the day of your trip, you fall ill and are unable to travel. How awful, right? No vacation and your money is gone.
Or let’s paint another scenario: on the day of your trip, you leave your house for the airport but on getting there, you realize you misplaced your passport. After several attempts in search of your passport, you still couldn’t find it, making you unable to catch your flight. This leaves your vacation entirely disrupted and money spent becomes a waste. Nothing can be more painful than that.
These two scenarios can be regarded as one of the worst things that could happen to a vacationer because after spending a lot of money on flight, accommodation and tourist activities, you don’t get to have the vacation experience that you desired, causing you to bear the financial loss with no hope of a refund.
Do you know that even though these incidents were beyond your control and could not have been averted, if you purchased comprehensive travel insurance you could have been protected from the financial impact?
WHAT IS TRAVEL INSURANCE?
Travel insurance is a type of insurance policy that covers the risks associated with travel. While it may seem as an additional expense, it is advisable for travellers to buy it to be protected from any unforeseen circumstance that could possibly disrupt or derail their travel. Travel insurance may cover the costs of trip cancellation, baggage loss, medical expenses, etc.
TYPES OF TRAVEL INSURANCE
Not one travel insurance plan is the same, therefore, it is important to know the various types of insurance, so you can choose the best one for your trip.
Domestic Travel Insurance
Domestic travel insurance provides coverage for trips within your home or resident country. While you may think it’s not necessary to buy insurance for a domestic trip, there are certain situations in which it may be required such as missing a flight, falling sick before your trip or losing a luggage.
International Travel Insurance
This type of insurance provides coverage for International trips. It covers trip cancellations, missed flights, lost baggage or travel documents, medical emergencies in a foreign country. Some countries require visitors to purchase international travel insurance before entering their country, especially countries within the Schengen region.
Medical Travel Insurance
Whether it’s an illness, injury or medical evacuation, this insurance covers medical emergencies and healthcare costs while you’re away from home and ensures you get the necessary medical care without bearing the financial cost.
Single-Trip Travel Insurance
This is an insurance policy that covers any travel risks right from the start of your journey until you return home. It gives you protection against trip cancellations, lost baggage, medical emergencies for only a single trip.
Multiple-Trip Travel Insurance
Multiple-trip Travel Insurance is a type of insurance suitable for frequent travellers. You can save time and money by not buying insurance every time you need to travel, and It covers multiple trips within a specific period of time. This travel insurance covers all trips taken within 365 days and it provides protection against trip cancellations, missed flights, lost baggage or travel documents, and medical emergencies.
Senior citizen Travel Insurance
This type of insurance is suitable for older travellers who may be affected by age-related concerns during travel. With this insurance, older travellers can enjoy travel because their unique needs are covered and they’ll be protected against trip cancellations, missed flights, lost baggage or travel documents, and medical emergencies.
Group Travel Insurance
This travel insurance provides protection for all members of a group. If you’re travelling with your family or friends, group travel insurance offers insurance coverage for everyone in the group so that they are protected against trip cancellations, missed flights, lost baggage or travel documents, and medical emergencies.
Student Travel Insurance
This is a type of insurance that is available for students travelling abroad for educational purposes. International students are protected from the financial burden of trip cancellations, missed flights, lost baggage, personal belongings and travel documents, medical emergencies, or even legal expenses during their academic year while they are away from their home country.
TRAVEL INSURANCE INCLUSIONS
Before buying travel insurance, it is important to know the features that are included in your travel insurance so that you’re not met by any unpleasant surprises.
1. Baggage coverage: your travel insurance will cover any delay, theft, or baggage loss while you’re on a trip.
2. Trip cancellation coverage: a few days or hours before your trip, an unforeseen event could occur and force you to cancel. A travel insurance will cover the financial costs of any non-refundable cancellation.
3. Medical coverage: when travelling, it can be expensive to pay out of pocket for healthcare abroad. However, if you purchased a travel insurance plan, your medical costs will be covered significantly.
4. Lost passport coverage: in the event that your passport is lost, a travel insurance policy may offer both financial protection and assistance to obtain a replacement.
5. Missed connections coverage: if you miss a connecting flight due to an unforeseen event, your travel insurance will cover the financial burden.
6. Emergency evacuation and repatriation: if the need arises for a medical evacuation or repatriation due to a medical emergency, natural disaster or civil unrest, a travel insurance policy covers the costs and ensures you receive appropriate medical care or are transported back to your home country.
7. Rental coverage: travel insurance offers coverage for any theft or damage done to your rental car or home while on a trip.
8. Permanent disability and death coverage: this coverage provides financial protection for severe situations that result in permanent disability or death during travel. Permanent disability coverage provides a significant amount to assist with medical care or lifestyle adjustments due to the disability sustained during a trip. In tragic cases where a traveller dies during a trip, death coverage provides financial assistance including funeral expenses, transportation of remains, and other related costs to the traveller’s designated beneficiaries in order to ease the financial burden on the deceased family during a difficult time.
TRAVEL INSURANCE EXCLUSIONS
Travel insurance policies typically come with certain exclusions not covered by the insurance. Exclusions may vary between policies and insurance providers. It is important for travellers to read and understand these policies to know the specific exclusions of the insurance they want to purchase. By knowing and understanding these exclusions, travellers are aware of the situations or events that may not be covered by their insurance, therefore allowing them to plan accordingly or seek additional coverage if necessary.
1. Pre-existing ailments: many insurance policies exclude coverage for medical conditions that existed before you purchased the travel insurance. All pre-existing medical conditions should be disclosed at the time of purchasing your travel insurance. If your insurance provider discovers that you concealed a pre-existing ailment, your policy will be null and void.
2. High-risk activities: some adventurous or high-risk activities such as scuba diving, bungee jumping, skydiving, or extreme sport may not be covered under standard insurance policies.
3. Alcohol or drug-related incidents: insurance coverage does not typically extend to problems or accidents resulting from drug or alcohol use.
4. Unlawful activities: any incident or loss resulting from illegal acts or behaviours are typically not covered.
5. War or terrorism: damages or losses caused by an act of war or terrorism, civil unrest, or government actions are usually excluded.
6. Travel to high-risk countries: certain countries or regions considered to be high-risk due to political instability, conflict or health hazards may not be covered.
7. Pregnancy delivery: the medical costs incurred by a pregnant woman during delivery are usually not covered.
MISTAKES TO AVOID WHEN BUYING TRAVEL INSURANCE
To ensure you buy the right travel insurance policy, avoid the following mistakes:
1. Not reading the fine print: not reading and understanding the details of your travel insurance policy could put you in an unpleasant situation. It is advisable to carefully review the inclusions and exclusions of your insurance policy.
2. Waiting too long to buy: the appropriate time to buy travel insurance is immediately after booking your trip to cover any cancellation that may occur.
3. Buying inadequate coverage: in an attempt to save money, you may make the mistake of buying a cheaper insurance coverage which may turn out to be inadequate for your travel needs. Sometimes, cheaper insurance does not provide comprehensive coverage. While travel insurance may seem like an additional expense, it is otherwise seen as an essential
investment that protects you against unforeseen circumstances that could potentially delay or disrupt your travel.