Travel Insurance Glossary

Travel Insurance Glossary

 
  • Accident
    An accident is a sudden, unintentional and unforeseen event that results in loss, harm, injury or damage.
  • Accidental Death & Dismemberment (AD&D)
    This benefit provides coverage in the event of death or loss of an arm, leg, hand, foot, or eyesight during your trip. In the case of death, the benefit is paid to your beneficiary.
  • Act of Terrorism
    The illegal use of violence to cause destruction of property or injury or death to individuals for a religious, ethnic or political reason.
  • Annual/Multi-Trip
    Annual or Multi-Trip Travel insurance plans cover all trips that occur within the span of one year. There may be limits on how long each trip can last, often between 30 and 120 days.
  • Athletic or Sports Coverage
    Provides coverage for participation in amateur, club, intramural, interscholastic or intercollegiate tennis, swimming, cross country, track, baseball, softball, volleyball and golf sports only. Some plans only cover pre-paid non-refundable costs relating to fees and equipment rentals or if your equipment is delayed or misdirected by a Common Carrier. Coverage varies depending on the company and plan; please always refer to your policy/certificate for complete details.
 
  • Baggage Delay
    This benefit reimburses you for loss of personal items if your baggage is delayed more than 24 hours during your trip.
  • Baggage & Personal Effects
    Necessary items carried by travelers, including clothing and other personal effects.
  • Beneficiary
    The person or persons designated by the insured to receive the proceeds of the insurance policy upon the death of the insured. If no beneficiary is specified in the policy, proceeds will go to the insured’s estate.
  • Benefits
    The amounts listed in the policy or certificate of insurance that the insurance provider will pay out in the event of a claim to the insured or beneficiary under the terms of a policy.
 
  • Cancel for Any Reason
    Provides reimbursement for non-refundable trip costs and deposits if a trip is canceled for any reason, whether listed as a covered reason under the policy or not.
  • Certificate of Insurance
    The document you receive directly from the insurance company that details the benefits, and coverage provided under those benefits, and the exclusions, of your travel insurance or international medical insurance plan.
  • Co-Insurance or Co-pay
    This is the amount or percentage that the insured pays after the deductible. There is usually a maximum out of pocket amount or limit above which the insurance company will then pay 100%.
  • Common Carrier
    Refers to a conveyance of transportation (commercial airplane, cruise ship, bus, or other vehicle) which is licensed and business intension is to transport paying passengers.
  • Country of Citizenship
    The country a person owes allegiance to, has been born in (and not lost or renounced citizenship in), or naturalized in.
  • Country of Residence
    The country where you currently reside or maintain what is considered your primary permanent residence.
  • Covered Reasons
    Trip cancellation and trip interruption coverage normally provide benefits for “covered reasons” named within the policy. These are the reasons in which the policy will pay out a claim in the event of cancellation or interruption of the trip.
  • Coverage Start Date
    The date an insurance policy becomes effective and benefits are available.
  • Covered Trip
    Refers to the travel arrangements for which you have or will pay before departure and for which the insurance has been paid in full to cover the total non-refundable amount of said travel arrangements.
 
  • Day
    Refers to 24 consecutive hours.
  • Deductible
    The amount that must be paid by the insured before any benefits are paid by insurance company. This may be an annual amount, an amount for the duration of the policy, or an amount for each incident. Most policies requiring a deductible will have range of options to choose from.
 
  • Emergency
    An urgent and sudden onset of sickness, pain or injury that requires immediate medical care and such medical treatment cannot be postponed until returning to your home or residence.
  • Emergency Benefits
    Amounts paid out by the insurance company for urgent and unexpected illness, injury, or accident requiring medical care. These may include emergency medical evacuation, Accident & Sickness expense, and emergency reunion with a family member and costs to return a body to its home country.
  • Emergency Travel Assistance
    A broad range of services provided under the travel insurance policy through a toll-free 24 hour emergency number the insured can call worldwide. Assistance services may include medical referral and monitoring, legal assistance, emergency message center, emergency cash transfer, arrangement of medical evacuations or repatriations, emergency translations, and pre-trip assistance.
  • Exclusions
    Circumstances or expenses in which the insurance company will not pay. They may include expenses related to pre-existing conditions, those caused by illegal drug use, and for injuries caused by dangerous activities or certain sports.
  • Expenses
    Costs or charges incurred by the insured while on a covered trip that may be payable under the policy.
 
  • Family Plans
    Plans that cover everyone in a family and may include relations outside the immediate family, such as grandparents and in-laws.
 
  • Hazardous Sports & Activities Coverage
    Coverage for medical expenses resulting from participating in certain hazardous or high risk sports and activities such as scuba, sky diving, mountain climbing, skiing, bungee jumping, and/or amateur or professional racing, etc. Travelers who plan to engage in any sport or high risk activity should look into plans offering this optional benefit.
 
  • Immediate Family Member
    For the purpose of coverage under a travel insurance plan, immediate family members may include spouse, parent, legal guardian, step-parent, grandparent, grandchild, in-laws, natural child, adopted child, stepchild, brother, sister, step-brother, step-sister, aunt, uncle, niece and nephew of the person buying the policy.
  • Individual Plans
    Travel Insurance plans priced for one single traveler.
  • In-Flight Accidental Death
    Death resulting from damage to the aircraft person was traveling in.
  • Initial Trip Deposit/Payment
    This is the date you made your first deposit or payment toward the cost of your trip. It is important since you are eligible for additional benefits if you purchase your plan within a specified time period after your initial trip payment. For example the Pre-Existing Condition Waiver, Financial Default or Bankruptcy of a Supplier, Cancel for Work/Business Reasons or Cancel for Any Reason benefits.
  • Injury
    Unexpected or unforeseen physical harm to a person while on their trip that requires emergency medical treatment or care.
  • Insured or Insured Person(s)
    The person(s) named and covered under travel insurance policy for which the premium has been paid.
  • International Medical Insurance
    Medical insurance when traveling outside your home country that covers you in the event you become ill or hurt during your trip. Typical benefits are Medical Expenses, Medical Evacuation, Accidental Death, Repatriation of Remains, and Emergency Assistance.
 
  • Loss of Limb
    An injury resulting in a physical severance at or above the wrist or ankle joint.
 
  • Maximum Policy Coverage
    The maximum amount that will be paid for covered expenses by the insurance company. This may be an overall maximum or an amount for each accident or illness.
  • Medical Evacuation
    Medical Evacuation arranges for medical transportation of the insured to the appropriate medical facility to receive care.
 
  • Period of Coverage
    The period of time on which the travel insurance coverage begins through the date the coverage ends.
  • Plan Underwriter
    Is an Insurance company that underwrites the risk for the coverage and benefits of a plan. An underwriter sometimes administers its own products.
  • Pre-existing Condition
    Medical conditions associated with the insured (or a spouse, travel companion, or close relative in the case of travel insurance plans where trip cancellation results from the medical condition of someone other than the insured ) that existed or required medical treatment prior to the purchase of the travel insurance policy. Many plans will waive pre-existing condition exclusions if the policy is purchased within a number of days from initial trip deposit (7-21 days).
  • Premium
    Amount paid to purchase the travel insurance plan.
  • Primary Coverage
    Plan will be pay first in the event of a claim without regard to other existing coverage the insured may be enrolled in.
 
  • Repatriation of Remains
    In the event of death during your trip, the policy will cover expenses for preparation and transportation of mortal remains back to place of residence.
  • Reasonable and Customary Charges
    Amounts charged for services that do not exceed what is normally charged for similar services by others in the same area.
 
  • Scheduled Departure Date
    The date on which you are originally scheduled to leave on your Covered Trip.
  • Scheduled Return Date
    The date on which you are originally scheduled to return to the point where the Covered Trip began or to a different final destination.
  • Scheduled Trip Departure City
    The city where the scheduled trip on which you are to participate originates.
  • Secondary Coverage
    Plan will pay out benefits only after an existing insurance policy covering the claimed expense is exhausted.
  • Sickness
    A disease or illness of the body that requires you to consult with a physician for medical treatment or hospitalization during your trip.
  • Single-Trip
    Travel insurance coverage for just one trip.
 
  • Travel Companion
    A person(s) who is traveling with the insured on the covered trip for which insurance was purchased and whose name(s) appear on the same covered travel arrangements.