Is Travel Insurance Really Worth it?

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Tips
to selecting the travel insurance

 

The world is only a plane
trip away and if you are a growing business, travel may be a major expense for
your company.  This is why there are
things you need to know about travel insurance and its benefits.

Travel insurance can
minimize the considerable financial risks of traveling: accidents, illness,
missed flights, canceled tours, lost baggage, theft, terrorism, travel-company
bankruptcies, emergency evacuation, and getting your body home if you die. Each
traveler
s
potential loss varies, depending on how much of your trip is prepaid, the
refund-ability of the air ticket you purchased, your state of health, the value
of your luggage, where you
re
traveling, the financial health of your tour company and airline, and what
coverage you already have (through your medical insurance, homeowners or
renters insurance, and/or credit card).

Travel insurance consists of
five main types of coverage: trip
cancellation and interruption, medical, evacuation, baggage, and flight
insurance. Supplemental policies can be added to cover specific concerns, such
as identity theft or political evacuation. The various types are generally sold
in some combination — rather than buying only baggage, medical, or cancellation
insurance, you
ll
usually purchase a package that includes most or all of them. If you want just
one type of coverage in particular — such as medical — ask for that (though it
might come with a little cancellation or baggage insurance, too). “
Comprehensive insurance” covers all of the
above (plus expenses incurred if your trip is delayed, if you miss your flight,
or if your tour company changes your itinerary). 

Here is a quick breakdown of
each type of travel insurance you should consider:

Trip-Cancellation or
Interruption Insurance:
 Its
expensive to cancel or interrupt any prepaid kind of travel, and for a fraction
of the trip cost, you can alleviate the risk of losing money if something
unforeseen gets in the way.

Medical Insurance:  You might already be covered by your existing
health plan, so check first.  Even if
your health plan does cover you internationally, you may want to consider
buying a special medical travel policy. Much of the additional coverage
available is supplemental (or “
secondary”),
so it covers whatever expenses your health plan doesn
t, such as deductibles.

Evacuation insurance
covers the cost of getting you to a place where you can receive appropriate
medical treatment in the event of an emergency which  might mean a medically equipped — and
incredibly expensive — private jet.

Baggage
insurance
— for luggage that is lost, delayed, or damaged — is
included in most comprehensive policies, but it
s rare to buy it separately.  Check if your homeowners or renters insurance
covers baggage. Travelers baggage insurance will cover the deductibles and
items excluded from your homeowners policy.

Flight insurance (“crash
coverage”) is basically a life insurance policy that covers you when you
re on the airplane. Since plane crashes are
so rare, there
s
little sense in spending money on this insurance.

If you decide to purchase a
travel insurance policy, here are 8 simple tips to make sure you are properly
covered for your next trip:

1.   Make
sure to get the correct travel dates
: sounds simple, but this is
a mistake many people do regularly. It is important because the dates, from the
day you leave your home, to the day you return, will represent the period of
travel coverage.

2.   Verify
the eligibility
: some restrictions apply when it comes to
the location of purchase, city of residency and departure city. Make sure your
area is covered.

3.   Purchase
it at the time you purchase your tickets
: this will help you in the
event of a cancellation to get a full refund. When you buy coverage later than
the date you purchase your ticket, it can give the agencies a reason to add
some restrictions in the event of cancellations.

4.   Make
sure to add children
: while most policies cover children free of
charge, it is important to add them to the policy information.

5.   Include
your pre-existing conditions
: anything from mild to
extreme, make sure to mention these conditions to ensure coverage in the event
of a medical emergency during your trip.

6.   Include
your plans
: think about the type of trip you will be doing. If it
includes sports and activities, check the policy to make sure you would be
covered during any type of activity.

7.   Adjust
it to your budget
: when you have possibilities to choose from,
make sure that your coverage will be enough to cover your travel expenses such
as air fare and hotels. There is no need to spend more than that, but make sure
you are not covering less.

8.   Learn
about your destination
: whether you have been there before or
not, it is good to learn about your destination, their current events, weather,
health conditions and even their political news. In the event of strikes, civil
conflicts and health issues, being covered by your travel insurance will make a
difference while you are at your destination.

For some travelers,
insurance is a good deal; for others, it
s
not. What are the chances you
ll
need it? How willing are you to take risks? How much is peace of mind worth to
you? Take these considerations into account, understand your options, and make
an informed decision for your trip.  At
Avante, we are always standing by to help you weigh the pros and cons of any
insurance you may be considering.  Contact one
of our specialized agents to find the best policy suited for your insurance
needs
.