Let’s Plan Our Holiday

Invariably, every time you purchase airline tickets, one of the options before paying is travel insurance. And like most optional expenses, many people waive the expense, choosing rather to save their money. Others are sufficiently afraid of disaster that they do buy insurance. So this article does not set out to choose one opinion over the other, but rather, to educate on the basics of travel insurance.

Several types of travel insurance exist. The three main types are:

• Trip cancellation which may be used in the event of terrorism, natural disaster, tour company, hotel or airline bankruptcy, poor weather, or emergencies that require cutting a trip short or canceling the trip.
• Coverage for medical expenses and hospital bills is important if one suddenly falls ill while away from home, or has an accident which requires treatment. It is important to remember, however, that when deciding on the amount of insurance, the dollar value in your resident country is not relevant. Coverage should be in line with expenses in the destination country where the accident might occur.
• Reimbursement for non-refundable tickets and missed connections.

Policies are significantly different depending on the insurance company. Coverage, price and benefits will vary. Some insurers offer certain standard benefits such as compensation for accommodations, transportation and lost, damaged or delayed baggage. But do not assume that every policy offers the same advantages.

Further, policies are valid for a specified time frame. Some durations are as short as a day which would accommodate travelers crossing the border from the US into Canada or Mexico for a short jaunt, for example. Others may be as long as a year. But if you decide to stay longer and allow your policy to elapse, you will lose your benefits for the uninsured duration.

Important Points to Understand When Applying for Travel Insurance:

• The insurer is not obligated to provide insurance just because you filled in the application and paid your premium. The application can be denied.
• Not all destinations are insurable.
• The purchaser must disclose any existing or previous medical conditions. Neglecting to provide accurate information can lead to a denial of the claim and actually voiding the policy.
• Cost of travel insurance varies greatly between insurance companies and is based on many personal factors such as the type of insurance you require, the duration for which you will be away, your age, destination, and general health including past and present medical conditions.
• Emergencies are defined by the insurer not the insured. Examples of emergencies may include being called for jury duty, a newly diagnosed illness, or destruction to one’s home.
• Dangerous activities are usually not included in the policy. In fact, many insurers list specific exclusions. Some examples may be extreme sports such as rock climbing, parachuting, bungee jumping, and deep sea diving.
• Usually insurers will not honor accidents caused by alcohol or drugs (if used by the insurer, not another person who causes bodily harm to the insured). As well, other illegal activities would void the benefits from a travel insurance policy.
• Read the policy carefully and if need be use the refund time wisely where applicable.