Basic Guide To Travel Insurance

Single versus Annual Multi-trip coverage
The first thing to consider when purchasing travel insurance is whether you need coverage on a per trip or annual basis. Single trip insurance only covers you for one trip at a time and is generally recommended for the occasional traveler. It allows you to tailor your policy to meet the precise needs of the upcoming trip without incurring costs for unnecessary and unused benefits. A single trip policy is ideal if you travel only two or three times a year and want travel coverage for a set number of days.

But if you are an avid adventurer or frequent business traveler, annual multi-trip coverage may be best.  An annual multi-trip policy covers you for every trip throughout one year; this can be cost effective as you only pay for the coverage once instead of every time you travel. Having year round coverage gives you the flexibility to take advantage of last minute travel opportunities or airfare deals without the additional stress of arranging travel insurance for the trip. Most annual multi-trip policies, however, have restrictions as to the length and number of trips covered per year.

Who is covered by the Policy?
Travel insurance plans often provide coverage not only for you, but also to family members and other traveling companions. Please be sure to read the policy certificates to understand who is considered a family member or traveling companion.

All travel insurance policies have age limits for coverage. Some plans lower coverage limits depending on age and some benefits may not be available. So always be sure to review the plan coverages and restrictions to find out if you are eligible for the maximum coverage.

What is Covered
Travel insurance is designed to insure you against many travel related losses while providing such benefits as:

In the event of any of the covered reasons listed above, the policy will reimburse you the full or partial amount of the trip cost. Some travel insurance plans offer a cancel for any reason benefit at an additional cost that will allow you to cancel for any reason, covered or not.

Travel Delay
In the event that your trip is delayed and you require additional accommodation for hotel or food, the cost can be covered by the policy. Covered reasons for trip delay include many of the same indicated under trip cancellation/interruption. Each policy has daily and policy maximums for reimbursement and requires a minimum time a trip is delayed before the coverage kicks in. It is usually between six or twelve hours.

What is covered under Emergency Medical Expenses?
The medical coverage provided by travel insurance is possibly the most important component of any plan. Just think of the high out of pocket costs you would incur without coverage and the peace of mind it provides knowing you are covered for a medical emergency hundreds of miles away from home.

A standard travel insurance policy will provide emergency medical treatment or surgery in the event of an accident or illness while traveling. Emergency dental care may be included to relieve pain. Under this benefit, the plan can cover extra travel expenses and accommodations if a medical condition does not allow you to return home at the prearranged time. It may also cover expenses to fly a family member to accompany you while hospitalized, if deemed medically necessary.

As previously mentioned, medical coverage can be applicable to a traveling family member or travel companion.

Pre-Existing Conditions
A major coverage feature offered on some travel insurance plans is coverage for a pre-existing condition. This is a condition that was diagnosed or existed for a set period of time prior to the purchase of a travel insurance policy and requires treatment; the look back period varies depending on the travel insurance company.

In order to be covered for a pre-existing condition, the policy usually must be purchased within a certain number of days of the initial trip payment, and the full amount of the trip cost and entire trip stay must be insured. Some companies require that the condition has been controlled with medication for a period of time without requiring further treatment.

Medical Evacuation and Repatriation
In the unfortunate event that you must be medically evacuated or air lifted out of an obscure location in order to obtain the proper medical care, travel insurance can supply such coverage. The policy may provide evacuation right at the site of injury or oblige you to get to an airfield or the nearest hospital.

Depending on the travel insurance plan, it could simply offer evacuation to the nearest adequate health care facility or it could cover evacuation back home or to the hospital of your choosing. This can be a major factor and you should read your policy to see what applies to you.

Repatriation of remains can also be covered in the event of death and the costs associated with arranging for the return of mortal remains back to the place of residence.

Lost Baggage and Baggage Delay
Most travel insurance policies do reimburse you in the event of lost, stolen or delayed baggage. The policy limits are pretty restrictive, so it is recommended you do not travel with extremely valuable items. If you must carry valuable items on your trip, it is important to check your home insurance policy as it may provide a clause for items temporarily taken out of the country. A suggestion is to only travel with valuable items that are absolutely necessary.

What is Accidental Death & Dismemberment?
Another significant benefit offered by travel insurance is 24hour AD&D and flight only AD&D. This provides cash payment for accidental loss of life or limb while traveling. The coverage can be good for the duration or just for the flight portion of the trip.

If you are only interested in AD&D coverage, there are stand-alone AD&D and Flight Accident plans available.

24hour Emergency Assistance Services
All travel insurance policies provide a 24hour emergency travel assistance service accessible worldwide. This service offers valuable benefits such as: medical referral and monitoring legal assistance, emergency message center, emergency cash transfer, arrangement of medical evacuations or repatriations, emergency translations and pre-trip assistance.

Traveling in Europe has been simplified with the introduction of the Schengen visa. As a visitor to the Schengen area, you will enjoy the many advantages of this unified visa system.  With a Schengen visa, you may enter one country and travel freely throughout the Schengen zone. Internal border controls have disappeared; there are no or few stops and checks. This means that internal air, road and train travel are handled as domestic trips, similar to travel from one U.S. state to another.

In order to obtain the visa, travelers must show proof that they have sufficient medical coverage to meet the requirements of the Schengen Visa.

Visa requirements are:

The lists of Schengen countries to require the visa are: Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Greece, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden.

Once you purchase a travel insurance plan you will get an email confirmation that contains the declaration of medical insurance or certificate of coverage. You can use it as proof to the consulate at the time of the Visa application.

The Free Look Period
As with other types of insurance, travel insurance has a free-look provision allowing you to review your policy and cancel it if you wish with a refund of the plan cost.  The free look period varies depending on the travel provider, but it is usually between 10 to 14 days.

Some policies do not offer a free look period but instead require written notification prior to departure.