Many travelers are away from home several times a year, and travel insurance companies have designed annual coverage plans for them.

Companies like HTH Worldwide, Travelex, International Medical Group, and Travelguard all offer a variety of annual coverage, multi-trip insurance plans. These plans offer many of the standard benefits such as medical/dental coverage, accidental death, and emergency medical evacuation.

These annual travel insurance plans usually limit the length of individual trips, from 30-70 days per trip. Longer trips allow for more risk to the insured, so they do need to add these individual trip limits.

No. Medicare, the federal health insurance program for people age 65 and older and for individuals with disabilities, does not provide care in foreign countries.

Travelers who depend on Medicare when in the US need to purchase a travel insurance policy with international medical coverage. Most policies from comparison sites offer some level of international medical coverage, but be sure to read the policy for specifics.

Some finding from a recent US Travel Insurance Association study:

• Travelers who buy trip insurance tend to be well-educated, frequent travelers, and have higher incomes
• 70% of cruise travelers buy travel insurance
• Purchasers of travel insurance are more likely to have a destination or activity as part of their trip rather than visiting friends and relatives
• People are more likely to buy travel insurance when there are more factors out of their control. For example: travelers going abroad are 3 times more likely to buy insurance than domestic travelers
• 77% of people using a travel agent to book their vacation bought travel insurance

The 2006 Travel Insurance Consumer Survey was conducted online in late 2005 of 850 people who had taken at least one leisure trip of one night or more in the last 12 months.

So no big surprises here, but I am impressed with the number of cruise travelers who insure their trip. The reason may be because they are booked through agents, which increases the chances of buying coverage. Cruises also tend to be all-inclusive, which gives the traveler one large cost to worry about as opposed to several small trip costs.

The total trip cost includes any non-refundable, pre-paid trip arrangements. This represents the actual lost money if you need to cancel the trip.

Non-refundable, pre-paid costs might include airfare, hotel reservations, pre-arranged transportation, or any other arrangements that would represent a financial loss. The cost of these items should be added together to determine the total trip cost.

Some costs that would not qualify as non-refundable, prepaid costs are:
• Lodging costs not subject to cancellation penalties
• The cost of meals during the trip
• Visa, passports
• The cost of souvenirs or gifts
• Side trips you arrange while traveling

The cost of these items should not be added to the total trip cost. If you have any questions, contact the insurance company and they will answer any questions.

What if I change my mind after I purchase a travel insurance policy?

Most companies offer a free-look period for their travel insurance policies. This means you can purchase your policy and have 10 days to return it for a refund of premium. Think of it as a 10 day money-back guarantee (often there is a small processing fee of $3-$5, depending on the company)

Some travelers purchasing insurance for the first time like to recieve their policy and read the actual terms from the insurance certificate. Having 10 days to do so makes them more comfortable.

When shopping for travel insurance, make note of the free-look period and keeop it in mind as you shop. If you a fairly sure you have found the right policy, go ahead and purchase it knowing you can return it and get a refund.

2 things to keep in mind regarding a free-look period

1. Free-look periods and conditions vary by travel insurance companies. Make sure you understand the conditions.

2. There are benefits to purchasing travel insurance sooner rather than later. If you keep buying and returning policies, you may not enjoy these benefits.

As hurricane season starts sending big storm up the coast, many people consider purchasing travel insurance.

Here are some travel insurance basics for hurricane season

1. You can claim if your flight is cancelled because you are either
traveling to or traveling from an area affected by the hurricane.

2. You can claim if you are in an area that is under a mandatory
evacuation and you have to leave for a few days.

3. You can claim if you are in an area that is under a mandatory
evacuation order and you have to either cut short or extend your
vacation.

4. You can claim if your home was rendered uninhabitable by the
storm.

5. You cannot make a claim if the hurricane or storm was named
BEFORE you purchased insurance.

This last point is important. Basically, it states that you cannot buy insurance for your trip after the storm was named. This is referred to as the “named event” clause, and also applies to events like terrorism and airlinne strikes. This is also why travelers are encouraged to purchase their travel insurance as soon as possible, so they are covered for such events.

Travel Insurance Services (TIS) has issued a press release announcing a “cancel for any reason” option for their policies.

From PR Web’s press release:

“There is a large segment of the population who just don’t believe they will become sick enough to cancel a trip,” said Kevin O’Neal, President of Travel Insurance Services. “This product is for them√¢‚Ǩ‚Äùbecause chances are they can picture an important meeting, unexpected weather or a child’s school function interrupting their plans.”

Cancel for Any Reason coverage makes it simple. If you cancel your trip for any reason not otherwise covered by the Travel Insurance Select policy, you will be reimbursed for 75% of the prepaid, forfeited, non-refundable payments or deposits you paid for your trip. All you have to do is:

– Purchase within 15 days of the date your initial deposit/payment for your trip is received;
– Insure all prepaid trip costs that are subject to cancellation penalties; and
– Cancel your trip 2 days or more before your departure date.

The availability of this optional coverage gives customers the ability to customize their travel insurance to fit their trip and their lifestyle. Many retirees or empty-nesters may feel that purchasing the basic Travel Insurance Select product is sufficient because they don’t have a long list of commitments that could interfere with their travel. But professionals, families or people caring for older family members may want the flexibility they get by adding the Cancel for Any Reason coverage to the basic Travel Insurance Select plan.

Many people wonder if there are deductibles with travel insurance policies, similar to auto or home insurance.

In general, there are no deductibles for travel insurance policies
Most policies at least give you a “no-deductible” option, if it is not a standard policy feature. This means that a covered claim is paid in full, with the insured paying nothing.

If there is a deductible on an insurance policy, such as an auto policy, the insured pays the deductible amount first, then the insurance company pays the rest.

Bizpack is a policy add-on that provides cancellation benefits specific to work related situations. It is offered with travel insurance plans from Access America (now known as Allianz).

If you have purchase the BizPack Expanded Coverage, you will have the following covered reasons included:

1. You or a Traveling Companion are required to work during Your scheduled Trip. You must demonstrate proof of requirement to work, such as a notarized statement signed by an officer of Your employer.

2. Your company being made unsuitable for business by fire, flood, burglary, vandalism or natural disasters.

3. Your company being directly involved in a merger or acquisition. You must be an active employee of the company that is merging and You must be involved in such an event.

Many travelers never see the need for trip cancellation due to illness or accidents, because it has never happened to them. I would imagine work related trip cancellations are a bit more common, and for a flat rate of $19 per covered person, regardless of trip cost, it is a pretty good deal.

Just keep in mind you will need to document your requirement to work, otherwise it becomes a “cancel for any reason” policy with insureds simply claiming they had to work.

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From the Dallas Morning News, a good article about traveling with your children and travel insurance plans that will cover them.

The article includes input from Dan McGinnity of Travel Guard and Peter Evans from InsureMyTrip.com.