Worldwide Travel Insurance

There are four types of travel insurance that you can purchase:

Trip interruption/cancellation insurance Flight insurance Medical insurance Bad weather or  infectious diseases insurance. Let’s break it down.

Trip interruption/cancellation insurance provides coverage if the event that your trip does not operate, say if your flight gets cancelled, or if your cruise ship doesn’t sail.  It can also cover trip interruption due to illness, injury, deaths or involuntary job loss.  More comprehensive policies (often with more expensive rates) can also provide coverage if you cancel your trip for any reason, such as an important business conflict, a family obligation or even if you simply change your mind.   Trip interruption/cancellation insurance rates are generally based on your trip cost. 

Deciding when or if to buy trip interruption or cancellation insurance will depend on how much your trip costs.  If your flight is $200, then depending on your fiscal comfortability, you might decide to just forfeit the $200 if something happens.  If you just paid for a $6,500 custom tour of the Mediterranean then trip interruption/cancellation coverage could become very important. 

Check your credit card terms before you buy trip interruption/cancellation insurance from a third party: some credit cards offer trip interruption/cancellation coverage automatically if you purchase the trip on your credit card. 

Flight Insurance, also known as flight accident insurance or travel accident insurance, pays a lump sum in the case of accidental death or certain loss of limbs to your beneficiary or you in the event of a plane accident.  You can also get common carrier accident coverage, which covers accidents occuring on other forms of transportation such as trains, buses or subways.

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If you already have life insurance or disability insurance then purchasing flight insurance policy can become redundant.  Make sure to read the fine print to see if you are covered for travel, but in most cases those policies will offer coverage for what you need.  Flight insurance, just like trip interruption or cancellation insurance, can also be offered through your credit card, so it is important to check there as well before purchasing flight insurance from a third party.  

Medical insurance for travel can be the most important insurance available to travelers.  Medical insurance offers coverage for emergency care which can include emergency prescriptions or emergency evacuation.  It is available for a single trip or on an annual basis.  If you have health insurance here in the U.S. it often does not cover medical needs abroad, so it is very important to check your current health insurance for limits in coverage.

Not all medical insurance policies are created alike.  There is a wide variety of coverage and prices as well as host of fine print regarding pre-existing conditions.  This is one policy that your credit card is not likely to cover.  Medical travel insurance is highly recommended for everyone, especially those who are traveling to areas where health care is not accessible or sub-standard.

Adventure travel such as mountain climbing or even snowboarding is often not covered in medical insurance policies, so it is important to check that your policy covers you for all your planned activities.  If not, there are often extra riders that are available.

Bad weather or infectious disease insurance is a policy that offers coverage in the event that inclement weather such as a hurricane, earthquake or fire, as well as trip cancellation due to travel warnings on infectious diseases (i.e. swine flu in Mexico or SARS in China) causes either delay getting to your location or a complete cancellation of your trip.  It only covers bad weather that is unforeseen, so if you purchase bad weather insurance right before you leave and the forecast calls for a hurricane, then your bad weather policy will not cover you.  Timing is everything for this type of insurance.

Make sure to read the fine print for this policy, as with the other forms of insurance.  If your resort is still operating during a hurricane, then you may not be covered if you decide to fly home early.

Deciding on whether or not to purchase bad weather or infectious disease insurance depends on when and where you are going.  If you are headed for your honeymoon in the Caribbean during hurricane season, then bad weather insurance becomes very important. 

Tips before you purchase:

Check your credit card for policies that are already available to you free of charge.  No need to purchase the same insurance if you are already covered.

Read the fine print!  Know what you are buying and make sure it covers what you need.

Do research on the travel insurance company you are about to purchase from.  Do they have good user reviews regarding claims?  Check their status at the better business bureau or through A.M. Best, an international insurance rating agency. 

Check to see if the insurance company has offices and doctors in the area you are traveling to.   Do they have English-speaking service providers available so you can communicate with them?

Shop around.  Not all policies are alike, and they all charge different rates.  Do yourself a favor and research for the best price and policy for your needs. 

Originally published here.

Is Travel Insurance Really Necessary?

Travel is already expensive enough, isn’t it? The cost of air fare, cruises, hotels, ground transportation, food and activities and entertainment are already high enough.  I don’t know about you, but I work hard for my money, and when I travel, I want to keep as much of my money in MY pocket as possible.   Is travel insurance a necessity or a luxury?  Why not cut a few corners here and there. Why buy something if it’s not really needed?

My personal answer is, of course, that I am not independently wealthy and can’t withstand the potential financial losses if I require medical care while I’m traveling.  Not being independently wealthy also means that I’m in the market for adequate but cheap travel insurance. I suspect that you are in the same position, so you, too need cheap travel insurance.  If you’re still not sure about that, consider the following.

Did you know that if you get sick or are injured while traveling abroad, your medical plan may not cover all the expenses you will incur? If the costs of treatment are higher than the maximums of your medical plan, you will be responsible for the difference, unless you have already purchased travel insurance.  In fact, you may not even be admitted into hospitals in some countries without proof that you have health or medical insurance.

This is true for everyone, regardless of age or length of time abroad. Suppose you fall ill just a few hours after arriving at your destination. Or suppose you make a day-trip to another country, and you are injured in a traffic accident. Or suppose one of your children is part of a group making a class visit abroad, gets food poisoning and requires hospitalization. In all cases, without adequate travel health insurance, you will be responsible for the costs above and beyond the limitations of your existing medical plan.

Therefore, before going abroad, you need to make sure that you are adequately covered by travel medical insurance that won’t break your budget.  You should check to see if appropriate coverage is already available to you through your medical plan, employee benefits, or even through a credit card.  If the coverage is sufficient for your needs, then you can enjoy your trip without incurring the extra expense of travel insurance. However, if you are not sure of your coverage, or if your coverage is inadequate or non-existent, then your next step should be to research and purchase the travel insurance coverage you need.

How Much Can You Expect To Pay?

When I bought my first plane ticket to China a few years ago it cost around $2000 round-trip, and my travel insurance cost me over $500 because I didn’t shop around for cheap travel insurance online.   

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A few years later, a little bit older and wiser, and my travel insurance for another trip to China cost me much less–about $300 for roughly the same coverage. The difference? Before buying my travel insurance for the second trip, I shopped around online and got the coverage I needed, at the right price.  If I’d have purchased my travel insurance for this latest trip from my travel agent, it would’ve cost me about $600 for the trip, and my plane tickets only cost $1,500!  Not exactly the smart way to go.

So how much will it cost you? Not as much money as it will cost you if you get sick or injured abroad and you don’t have any travel insurance coverage! That’s the obvious answer to the question.

In fact, how much travel insurance costs will depend on your age and the type of coverage you choose. Basic policies cost as little as $5.50 USD per $1000 of coverage. On the other hand, you can expect a full coverage policy to cost you from 7 to 10% of the cost of your trip, depending on your age. The older you are, the more you will pay. No matter what the cost of the policy, however, it’s sure to be much less than the cost of medical evacuation!

The good news is that you can easily, conveniently and quickly research and locate excellent but cheap online travel insurance and reduce the costs while making an informed purchase.  This is much better than taking what you are offered at the travel agency because you can choose from hundreds of travel insurance companies and polices and save yourself a lot of money in the process.  One place you can start your search is at Travel Insurance Central, http://www.travel-insurance-central.com

What You Should Consider When Buying Travel Insurance

To assist you in your research, here are some suggestions to help you make an informed purchase.

1.  Consider the worst-case scenario. If you can financially withstand the worst-case scenario then maybe you don’t need travel insurance or maybe you don’t need a comprehensive policy.

2.  Make sure the policy you are considering provides adequate medical/dental coverage, including medical evacuation coverage just in case you need medical care in a place where the best treatment available is below the standards you are accustomed to in your country.  This can happen if you fall ill in a developing country or even on a cruise ship.

3.  Check your existing insurance policies for possible coverage. There is no sense in paying more for what you already have in your homeowner or tenant policy, such as theft and loss coverage.

4.  If you are a frequent traveler, you should consider annual or year-round travel insurance policies. Sometimes they are called multi-trip travel insurance policies. Whatever the name, these policies can be relatively cheap when compared to single-trip travel insurance policies.

5.  Know what you are buying, so read the fine print. Make sure that you understand what the company considers to be a legitimate reason for cancellation or interruption.  If the list is too restrictive, maybe you should consider another policy.

6.  Don’t restrict yourself to buying only from your travel agent. He/She will probably only have one company’s product(s) available, and it’s there for your convenience, but that convenience can be quite costly!

7.  Ask lots of questions about the coverage. Play the “what if” game. Ask for clear explanations of terminology.  Make sure that you and the travel insurance company are speaking the same language.

8.  Don’t buy the insurance through your transportation provider. If the airline goes bankrupt, how adequate will your insurance coverage be?

Once You’ve Bought Your Travel Insurance

Remember that your travel insurance policy covers you between certain specific dates, so don’t start your trip early or extend your trip without first changing the dates of coverage on your travel insurance policy. Of course, this might cost you extra, but that’s cheaper than finding yourself without coverage when you need it the most.

Also, it almost goes without saying that you should bring your travel insurance policy with you when you go abroad.  You can’t consult the policy if it’s sitting on your desk at home.  You should also carry your travel insurance company’s toll-free assistance phone number and other contact information with you wherever you go.  It does you no good if you get ill or hurt and the necessary policy information is sitting in your hotel room.  It’s also a good idea to bring your regular medical coverage cards and info with you.

I hope these tips will help you by the best travel insurance for you.  Then take your trip with the peace of mind that comes from knowing that you are insured by the right travel insurance policy at the right price.  Bon voyage!

Originally published here.

For those who travel overseas for extended periods of time, or for non-US citizens who spend time in the US, it’s important consider what type of health insurance is needed prior to travelling. Despite what many people believe, if you are traveling for at least six months at a time, you may not be covered by the same health insurance you have in your home country while travelling abroad.

Travelers should consider purchasing an international travel insurance plan before leaving home, whether they are traveling for business or for pleasure. No matter where you travel, by protecting yourself and your family with international insurance, you can feel confident that you and your family will receive affordable, high-quality medical care.

Short term travel insurance plans typically only offer coverage for emergency care, while long term international travel health insurance also includes coverage for preventative care after a waiting period. With a long term plan, you can enjoy low-cost physician visits and reliable coverage for health screenings and medical care.

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International travel health insurance plans, like those offered by Global Citizen, offer a wide range of coverage options, including varying deductible amounts that depend on what option you select ($0 deductible for Elite customers and up to $25,000 for the lower-tier plans). When you are planning an extended overseas stay, it’s important to have the flexibility to select a deductible that works for you.

For those who plan on returning to their home country for short visits during their stay abroad, international travel insurance for long term trips often includes coverage for care in the US and outside of the US. With this kind of coverage, travelers can go back and forth seamlessly without any gaps in coverage.

International travel health insurance covers not only routine care, but also offers coverage for surgery, inpatient care, physical therapy and prescriptions. By having insurance that covers your medical needs outside of your home country, you can reduce your overall medical bills and save money during your trip.

While living abroad, it’s easy to protect your family with the affordable rates and numerous deductible options that overseas health insurance plans offer. You don’t have to worry when travelling between your home country and your overseas home since you will be protected during your entire stay.

Be sure to consider the importance of purchasing a worldwide health insurance plan for you and your family when preparing for an extended stay in another country. No matter where you travel, protect yourself and stay healthy with affordable health insurance that allows to feel confident that your needs will be covered.

Originally published here.