What is Travel Insurance?

Complete Guide about Travel Insurance

Are you planning for your next trip abroad? Do you need to attend your cousin’s wedding in the US? Do you have an upcoming business meeting in Thailand? If yes, you should consider getting a travel insurance policy to safeguard you from financial losses when traveling to an unfamiliar country.

What is travel insurance?

Travel insurance is designed to protect individuals from different mishaps that one can face during travel. The mishaps can range from minor inconveniences to major accidents, but the plans are there to save you from all the unfortunate events. Also known as trip cancellation insurance, the plans include medical coverage along with trip delay, trip interruption, trip cancellation, medical evacuation, repatriation of remains, baggage loss, AD&D, and more.

What are the types of travel insurance?

There are two types:

1. Trip cancellation– Trip cancellation travel insurance plans cover the events that are not known to the buyer on the date of purchase. It seeks to refund your money in case you are unable to travel due to an unknown situation covered under the policy. Such International Travel Medical Insurance plans may or may not include medical coverage but usually include trip interruption, evacuation, and lost luggage coverage. The cost of the plan depends on the cost of the trip, the number of days of the trip, and the age of the traveler.
2. Travel medical insurance– The US, as well as non-US citizens, can consider these International Travel Medical Insurance plans while traveling outside their country of residence or country of citizenship for a short duration (5 days to 364 days) for leisure or business. These travel medical insurance plans provide inpatient and outpatient medical coverage but exclude preventative care, preexisting condition coverage, maternity or trip cancellation. The cost of the plan is calculated based on the age, the number of days of coverage, and the amount of coverage and deductible you opt for.

Is visitor insurance different from travel insurance?

Yes. Visitor insurance is mainly focused on medical coverage during your travels. The plans cover new and unexpected health conditions and can last for 5 days to 1 year and even longer. Visitor insurance plans are ideal for both US and non-US citizens and are extendable. It covers the PPO network, acute onset of pre-existing conditions, and choice of medical maximum and deductible. It does not cover trip cancellation, trip delay, and baggage delay.

Travel insurance is ideally suitable for 30 days trip and includes baggage delay, travel delay, trip cancellation, and loss of passport. Most plans are ideal only for US residents and do not come with a PPO Network and choice of medical maximum and deductible. These plans may or may not  cover  pre-existing conditions and are not extendable once the trip begins.

Is travel medical insurance different from travel insurance?

Yes. Travel medical insurance is another name for visitor insurance. Travel insurance is another name for trip cancellation insurance. The difference is stated above.

What does travel insurance cover?

• Trip cancellation– If you cancel your trip prior to departure due to a covered reason, you may be reimbursed for the pre-paid non-refundable trip cost that you have insured. There are many travel insurance plans that allow you to upgrade to Cancel For Any Reason provided you insure the entire trip pre-paid non-refundable trip cost.
• Trip interruption– If you wish to return to your home country due to a covered reason, the plan may help you in making arrangements to go back home.
• Emergency medical expenses– You may be sick or injured during their travel and bearing the medical expenses can leave you financially crippled. Your standard home insurance policy is not going to cover you abroad, hence, your travel insurance plan can save you.
• Emergency medical evacuation– Getting insured or wounded in a remote location can give you a lot of stress. You may not understand what to do in that situation. Your plan covers the transportation to the nearest qualified hospital to get you treated to prevent you from loss of life or limb.
• Repatriation of remains– If the insured individual faces sudden death during the trip, the benefit will help them to send the remains back to their home countries.
• Accidental death and dismemberment- The coverage may help recover financial losses if the policyholder dies or loses his/her body parts during the trip.
• Baggage and personal effects- Many plans cover baggage loss, baggage delay, loss/stolen/damage of personal belongings, and more. 

What is not covered by travel insurance?

Generally, losses resulting from pre-existing conditions are excluded. But losses can be covered  if you meet the requirements for the Pre-Existing Medical Condition Exclusion Waiver. However, this waiver will change based on the plan you opt for. . Read the brochure before proceeding.

Typically, travel insurance plans do not cover losses resulting from:

1. suicide, attempted suicide, or any self-inflicted harm
2. an act of declared or undeclared war
3. riding, driving, or participating in races, or speed or different contests
4. normal childbirth, normal pregnancy through the first 9 months of pregnancy or voluntarily induced abortion
5. skydiving, hang gliding, bungee cord jumping, scuba diving or other extreme sports
6. dental treatment

In case of trip cancellation, it will not cover any losses resulting from:

1. breakage of brittle or fragile articles
2. theft of belongings if left in any unlocked vehicle
3. illegal property/belongings
4. property shipped as freight

Different plans have a different list of activities excluded. It is recommended to check the brochure before you buy a plan.

How does travel insurance work?

In most scenarios, your travel insurance plan reimburses you for your covered financial losses after you file a claim. Filing a claim means you need to submit proofs and documents of your loss to the company. The claim department will verify what happened and reimburse you for your covered losses. If you have purchased a plan from us, you can visit our claim section and follow the step-by-step procedure.

How does this work? Suppose you bought the Plan, which includes trip cancellation benefits. Two days before departure, you fall sick, and you are advised to cancel the trip. Without travel insurance, you would lose the money for the already booked cruise or excursion during your vacation.

Luckily, a critical illness can be regarded as a covered reason for trip cancellation. This means you can be reimbursed for your prepaid, non-refundable trip costs. Once you recover, you can gather all your documents and file a claim. For any medical treatment, the claim department may ask the in-network provider to show the documents to evaluate the claim.

Does travel insurance cover COVID-19?

• Cancellation: Reimburses prepaid and non-refundable trip payments if you must cancel your trip because you become sick with COVID-19 before you depart on your trip and your physician determines you can no longer take your trip.
• Interruption: Reimburses prepaid and non-refundable trip payments and additional transportation costs if you must interrupt your trip if you become sick with COVID-19 during your trip and your physician determines you can no longer continue your trip.
• Medical coverage: Reimburses you for medical costs you incur if you unexpectedly contract Covid-19 during your trip.
• Travel delay: Reimburses meals, local transportation, and lodging (if not paid by a common carrier or another party) if you’re delayed at least 6 consecutive hours because you are quarantined.

What can be covered under Trip Cancellation?

The covered reasons can be:

• Death
• Sickness or Injury
• Pregnancy Complications
• Financial Insolvency or Default
• Traffic Accident
• Common Carrier Mechanical Breakdown
• Airport Shutdown by Local Authorities
• Airport Shutdown due to Fire or Power Outage
• Strike
• Inclement Weather
• Primary Residence or Destination Accommodations Uninhabitable
• Hurricane Warning or Watch
• Hijack/Quarantine
• Subpoena/Court Order/Jury Duty/Witness
• Military Duty for Natural Disaster
• Military Leave Revoked or Reassigned
• Host Unable to Provide Accommodations
• Terrorist Incident
• Passport, Visa, or Travel Document Theft
• Felonious Assault
• Involuntary Employment Transfer
• Terminated or Laid Off from Employment
• Natural Disaster Evacuation at Departure City or Destination

What can be covered under Trip Interruption?

The covered reasons can be:

• Death
• Sickness or Injury 
• Pregnancy Complications
• Common Carrier Mechanical Breakdown
• Airport Shutdown by Local Authorities
• Airport Shutdown due to Fire or Power Outage
• Natural Disaster or Hurricane Evacuation at Departure City or Destination
• Unable to Continue Trip Due to Injury or Sickness
• Traffic Accident en Route to Departure
• Inclement Weather
• Accommodations Uninhabitable
• Hurricane Warning or Watch
• Hijack/Quarantine
• Subpoena/Court Order/Jury
• Strike
• Duty/Witness
• Military Duty for Natural Disaster
• Military Leave Revoked or Reassigned
• Host Unable to Provide Accommodations
• Terrorist Incident
• Passport, Visa, or Travel Document Theft
• Felonious Assault
• Travel Alert, Evacuation Order, or Travel Ban
• Involuntary Employment Transfer
• Terminated or Laid Off by Employer
• Financial Insolvency or Default

Travel insurance and Cancel For Any Reason

Cancel for Any Reason is an optional benefit of travel insurance coverage that offers the opportunity to cancel travel plans for any reasons other than those listed as covered reasons on a policy. This coverage gives greater flexibility and freedom when deciding about travel reservations. Individuals cannot purchase this benefit separately; it can only be added as optional coverage if it already is not part of the plan benefits. However, you need to meet certain criteria to enjoy the coverage e.g. insure the entire non-refundable trip cost.

What is the cost of travel insurance?

The cost depends on how much coverage you are getting, the ages of the travelers, the number of days of travel and how expensive your vacation is (your trip cost). Visitor Guard® offers plans with optional upgrades. To know the exact quote, you can use the engine on our site or call us at our given number. We will help you in finding out the premium.

Should you buy travel insurance?

Yes, travel insurance is one of the items you should consider when you plan a trip.

You cannot determine what you are going to face during your trip. If you are going away far from your home country, it becomes difficult to pay out-of-pocket medical expenses there. Plus, medical evacuation, repatriation, accidental death and dismemberment, trip cancellation can cost you thousands of dollars. Many people wrongly assume that their standard health insurance plans can save them from financial losses abroad. Getting a travel insurance plan can be useful.

Travel Insurance FAQs

How do I buy travel insurance?

Travel insurance can be quoted and purchased instantly from an insurance company. You can get a quote online, buy with a credit card, print your email confirmation, and you are all done. Or, you can call us to buy a plan.

Why do I need travel insurance?

Travel is risky, and insurance can protect you from various financial losses that may occur while traveling. If you have to cancel your cruise booking for a covered reason, trip cancellation benefits can reimburse your non-refundable, pre-paid trip costs up to your plans limits. If your hiking gear gets stolen, your baggage loss/damage benefits can reimburse you for the loss. Some plans can cover your sports rental expenses.

What can be included in your non-refundable trip cost?

Non-refundable costs include pre-paid trip deposits that would be lost if you had to cancel for a covered reason prior to trip departure. Some examples may include vacation rental costs, campground fees, rental car fees, tickets for tours or events, and hotel and airline ticket costs. Check your policy before confirming anything.

How can you determine the cost of travel insurance?

The cost of travel insurance generally depends on a few key factors- the age of the traveler, the trip length, the cost of the trip, the level of coverage, and more. The cost is not affected by your destination or your prior medical or claims history.

Can I change my plan if my trip dates have changed?

Insured individuals get 15days to change their plan if they are not satisfied with the plans they have purchased. You can email us or call us to know more.

How to file a claim?

Each plan has its own Claim filing procedures. The easiest way to file a claim is to visit our claim section. Download a claim form, complete it, attach your documents to support your claim, write your policy number, and follow the instructions on the Claims Form.

How do you find the coverage limits?

Before you sign up for the plan, you can review the benefits in the brochure. After you sign up for the plan, you can check your plan documents for the exact details, including benefits, coverage limits, covered reasons for trip cancellation/trip interruption, and exclusions. Benefit limits are listed on the Declarations page.

It may not be easy for you to understand the trip cancellation policies and other insurance terminologies. Visitor Guard® is here to help you in answering your queries regarding travel insurance and help you pick the best plan as per your trip.