Last Updated on May 21, 2021 by MoneyVisual
Travelers are becoming aware of security and benefits regarding travel insurance policies. Choosing the right travel insurance plan as per requirements is essential for a stress-free and safe traveling experience.
Travel expands our horizons and gives new perspectives that daily routine life cannot. It introduces us to new customs, cultures, and lifestyles along with rejuvenating us to get back to our lives. There are innumerable benefits of roaming around the world, exploring undiscovered places, and meeting new people.
While planning the travel, there are words such as excitement, adventure, fun, and thrill come to your mind and you look forward to the trip. However, there is another word that should come into your mine for having a stress-free and safe traveling experience. The word is insurance. To be more precise, a travel insurance policy.
A medical emergency in the countries you are traveling may put a big hole in your pocket if the costs are high up there. Moreover, there could be a loss of baggage or passport and other personal liabilities. This is why a travel insurance policy is important. Millennials are becoming aware of security and benefits regarding travel insurance policies. The next step is choosing the right travel insurance plan.
There is a growing competition in the travel insurance providers. So, they are trying to attract travelers with different schemes. Instead of looking at travel insurance policies as paperwork, travelers should consider adopting the right insurance policy. Following top tips to help you in finding the right policy for travel insurance:
1. The Destination Matters
The size of the covers is dependent on the destination. The sum insured by the insurance policy will vary depending upon the destination. As the medical cover is a crucial part of your travel insurance policy, the costs of medical services are different in different countries. Determine the amount of coverage based on the rate of medical services in the city or country you are visiting.
The premium will be high in the countries where medical charges hit the rooftop. The costs of medical treatment in countries such as the U.S. and Canada are higher than the costs in South-East Asian countries. Moreover, the premium rates for travelers visiting Japan are higher than in other Asian countries. So, there will be a difference in the sum insured.
2. The Duration Changes the Amount of Premium Covered
If the stay is longer, the premium covered will be higher. The cost for a seven-day trip will be different than a month-long trip. If you travel frequently, opt for yearly plans so that you can save some bucks. These yearly plans cover all the trips you take within a year. These multi-trip policies cover each trip covering the time period of 30-45 days. However, this duration varies depending upon the insurance company.
It also offers convenience to travelers as they do not need to buy the insurance, submit the documents, and find the appropriate policy every time they take a trip. T A Ramalingam, head of underwriting at Bajaj Allianz General Insurance, outlined that yearly multi-trip plans are affordable as compared to single-trip plans for each trip. The insurer does not need to undertake extra administrative expenses.
You may like to Read: Checklist for Your Next International Trips
3. Purpose Makes the Difference
Is your purpose of traveling sightseeing, chilling on the beach, or something more adventurous like bungee jumping? The travel cover should be chosen based on the severity of the activities you will be doing at the destinations. Indulging water sports, adrenaline-pumping activities, and hiking through difficult trails will determine what insurance plan you should opt for. The regular insurance policy does not cover the risks related to these activities.
Special coverage can be requested to cover these risks by giving extra costs. Moreover, senior citizens have special plans through which they get insured for already existing illness, death caused by accidents, and others. Some of the insurance companies cover fire and burglary insurance for homes during the travel duration.
Moreover, there are ‘missed connection’ insurance covers for travelers visiting more than a single city or country during a trip. They also offer bail bond insurance coverage if travelers are arrested during the trip.
4. Do Compare Plans, Wisely.
Comparing the features and premiums offered by different companies is essential to select the best plan. The catch is, it should be done wisely. There is fierce competition between market players operating in the travel insurance industry.
There are attractive offers to lure travelers into buying their services. The companies roll down the premiums and reduce the amount of coverage. To counter competition, insurance companies reduce the premium, and as a result, coverage is also reduced.
Travelers need to keep an eye on these plans. Trusting insurance companies blindly will result in pitfalls. There are online comparison companies that help you compare the prices. Refer them, but do not rely on them. They may not be updated.
Call on their toll-free numbers, check out plans, know what payment options are available, and gain insights on the claim process. In addition, read the brochures, understand the claim procedures, and collect the required documents before opting for the plan.
The travel insurance industry is driven by the rise in awareness about policies, an increase in tourism activities, and growth in disposable income. According to the research firm Progressive Markets, the global travel insurance market would reach $32.7 billion by 2025, registering a CAGR of 8.5% from 2018 to 2025. These tips will help you in getting the right travel insurance policy for your travels and enjoy the journey without any worries.
Nisha Dodeja is a keynote senior consultant on digital marketing at Progressive Markets. She has been recognized for developing a robust social network strategy for the company. Nisha has written several whitepapers, case studies, and articles. She is a visiting faculty member at various educational institutions and has expertise in Insurance.