Topic 2: Seven Factors to Consider while Choosing Travel Insurance
Whether you are traveling locally or internationally. Whether you are traveling on vacation, on a business trip, or on a student visa, there are travel insurance plans for every need. It is important to recognize that while travel can be fun, it is also fraught with risks – loss of baggage, accidents, medical emergencies, political risks, etc. Therefore, it is important to stay protected. Think of travel insurance as a low-cost way of securing your travel. Unfortunately, travel plans are highly ignored. Unless you are traveling to countries where travel insurance is mandatory by the Law, most people seldom go for a travel plan. However, it is rather unwise to ignore a travel insurance coverage given the nature and types of risks associated with travel.
Let us discuss the factors to consider while choosing a travel insurance
1. Risk
Travel is fraught with many risks. These could include loss of baggage, injury to self or family members, accident, medical situation, the outbreak of violence in destination nation, etc. Therefore, it is important to assess your travel risks.
2. Destination
Travel insurance is costlier for countries where medical costs are high. The insurance premium is likely to be lower in countries where the cost of treatment is much lower. Further, nations which have a history of natural calamities are perceived as high-risk and therefore attract a higher premium. For instance, countries with a frequent history of cyclones or earthquakes, will see a higher premium. Further, countries that are unstable politically will attract a higher premium due to the perceived risk.
3. Duration
Travel insurance premium varies based on your travel type and duration. If you are planning a 7 day trip , it would cost you lesser than if you traveled to the same country for 2 weeks.
4. Plan Type
If you are a business traveler, you can opt for a single-trip plan for a short tour or a multi-trip plan if you are a frequent flyer with a multiple-entry visa for a particular country. On the other hand, there are other plan types specifically designed for students, leisure travelers, and senior citizens, etc. based on their specific travel needs.
5. Sum Insured
Decide the sum assured based on the destination of your travel and the cost of treatment in the destination country. A higher sum assured will attract a higher premium.
6. Add-on Features
Depending on your specific needs, you can consider add-ons that are not part of the standard travel insurance plan. For instance, some companies provide transit insurance coupled with your travel insurance plan, if you are carrying important documents or expensive items when you are traveling internationally. Also, there are “missed connection” covers for those who visit more than one city or country in a single trip. In the extreme eventuality of you getting arrested while traveling abroad, there is a bail bond insurance available. Furthermore, travel plans pay for legal assistance, etc based on the type of plan one has availed. The premium increases with each additional feature and add-ons chosen.
7. Service Efficiency
Evaluate service features offered by the travel insurer you are considering. Check if the insurer provides emergency assistance round the clock, do they have a toll-free helpline that operates 24X7, a well-networked hospital access across destinations, etc before buying your travel plan.
Let us discuss the factors to consider while choosing a travel insurance
1. Risk
Travel is fraught with many risks. These could include loss of baggage, injury to self or family members, accident, medical situation, the outbreak of violence in destination nation, etc. Therefore, it is important to assess your travel risks.
2. Destination
Travel insurance is costlier for countries where medical costs are high. The insurance premium is likely to be lower in countries where the cost of treatment is much lower. Further, nations which have a history of natural calamities are perceived as high-risk and therefore attract a higher premium. For instance, countries with a frequent history of cyclones or earthquakes, will see a higher premium. Further, countries that are unstable politically will attract a higher premium due to the perceived risk.
3. Duration
Travel insurance premium varies based on your travel type and duration. If you are planning a 7 day trip , it would cost you lesser than if you traveled to the same country for 2 weeks.
4. Plan Type
If you are a business traveler, you can opt for a single-trip plan for a short tour or a multi-trip plan if you are a frequent flyer with a multiple-entry visa for a particular country. On the other hand, there are other plan types specifically designed for students, leisure travelers, and senior citizens, etc. based on their specific travel needs.
5. Sum Insured
Decide the sum assured based on the destination of your travel and the cost of treatment in the destination country. A higher sum assured will attract a higher premium.
6. Add-on Features
Depending on your specific needs, you can consider add-ons that are not part of the standard travel insurance plan. For instance, some companies provide transit insurance coupled with your travel insurance plan, if you are carrying important documents or expensive items when you are traveling internationally. Also, there are “missed connection” covers for those who visit more than one city or country in a single trip. In the extreme eventuality of you getting arrested while traveling abroad, there is a bail bond insurance available. Furthermore, travel plans pay for legal assistance, etc based on the type of plan one has availed. The premium increases with each additional feature and add-ons chosen.
7. Service Efficiency
Evaluate service features offered by the travel insurer you are considering. Check if the insurer provides emergency assistance round the clock, do they have a toll-free helpline that operates 24X7, a well-networked hospital access across destinations, etc before buying your travel plan.