Travel insurance is a necessity for all travelers, especially those who are planning to travel abroad. When people are in a foreign country, they have a greater chance of falling ill because they may not be used to the living conditions and food in that country, and may also become injured as a result of accidents. Medical expenses can be very high in some foreign countries, and travelers may be required to pay a fortune to get treatment for their illnesses and injuries. Travel insurance policies offer compensation for certain losses incurred as a result of accidents that can happen during travel.
Generally, travel insurance policies offer coverage for: medical expenses, cancellation, baggage, and personal belongings. There are also policies that provide more extensive protection, with coverage for: emergency evacuation, repatriation, travel operator default, and others. Travelers who are planning to take part in high-risk activities, such as: skiing, rock climbing, bungee jumping, and scuba diving, can opt for a special insurance option to cover accidents that result from participation in such activities.
The compensation amounts offered to travelers vary from one policy to another. For medical expenses, the maximum compensation can be as high as millions of dollars, or it can be as low as a $25,000. Since medical expenses in foreign countries can be very high, most travelers will choose a policy that offers a maximum compensation in the hundreds of thousands.
Two common types of travel insurance policies are the single trip policy and the annual multi trip policies. The single trip travel insurance policy provides coverage for an individual for the entire duration of the trip, and it is particularly suitable for travelers who are making trips only once or twice a year. Business travelers or those who travel more than two times a year can save money by opting for the annual multi trip travel insurance. With this type of policy, an individual traveler will get coverage for all the trips they make within a year. A multi trip policy usually costs less than the total price of two or three single trip policies.
Special travel insurance policies are also available for: families, backpackers, seniors, and travelers who have pre-existing medical conditions. Family travelers can gain considerable savings if they opt for family travel insurance, because such a policy provides coverage for every member of the family, and it also offers special features that are suited to the needs of a traveling family. Backpackers usually travel for an extended period of time, and a standard travel insurance policy will not be sufficient to get them covered for the entire duration of their trips. A backpacker policy offers extended coverage as well as special benefits to give backpackers peace of mind when they travel.
Seniors and those with pre-existing medical conditions are not eligible to apply for travel insurance policies meant for ordinary travelers, because they have a higher chance of falling ill or getting injured during their travels. Special senior and pre-existing condition travel insurance policies are available for these travelers.
