Many years back people would just decide to go on a vacation or visit their loved ones haphazardly without anything to fall back on in the event of an accident, or loss of personal belongings and baggage most would get away with it but some would not be so lucky, some travelers had to bury their loved ones in a foreign land after failing to get funds for repatriation, many sad scenarios have happened, that is why travel insurance is very important Many things must be pone
dered upon when choosing travel insurance. But don't worry - we're here to help. In this blog post, we'll break down the different types of travel insurance and help you choose the best option for your next trip. We will also try to demystify some jargon and some very sharp turns that you have to avoid
Travel insurance jargon #1
Usual, Customary, and Reasonable Charges: Average amount of money due to travel insurers for certain services, treatments, or procedures in the same locality or area of jurisdiction.
What is travel insurance?
In layman's terms travel insurance is a policy that you buy from an insurance service provider and its mandate is to cover you against any possibility or financial ruin that you may encounter during your travel, it can be business traveling or just a vacation. Missed flights oops they don't cover this one, lost baggage, injury, sudden illness, and even sudden death can be covered, so you are simply protecting yourself from any misfortune that you might encounter whilst journeying
Our best picks for travel insurers in 2022
- Best Overall: Travelex.
- Runner-Up, Best Overall: Allianz Travel Insurance.
- Best Value: InsureMyTrip.
- Most Comprehensive Coverage: World Nomads.
- Best for Seniors: HTH Travel Insurance.
- Best for Cruises: Nationwide.
- Best for Medical Coverage: GeoBlue.
- Best 5-star rated in the UK: All clear travel insurance.
Travel insurance jargon #2
Pre-Existing Conditions: Sometimes called underlying conditions meaning a medical condition that existed prior to purchasing a travel medical cover policy
The different types of travel insurance
photo by Michail Nilov
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There are thousands of travel insurance types from a host of service providers to choose from, this is where most folks find themselves in a complete maze and unable to decide on which policy to take.
This is mainly due to the technical jargon that is associated with insurance policies and it's unfortunate that some unscrupulous insurers will deliberately hoodwink potential clients into signing documents that barely understand and those clients will eventually find themselves in a difficult situation with rejected claims in their hands.
- Medical cover or medical insurance
This type of cover will protect you as far as medical expenses are concerned, you may find yourself suddenly sick and you are in some god-forsaken hospital and you need urgent medical attention this type of insurance will cover you. Remember, your existing medical aid can only cover you in your locality or where you are a resident, therefore medical insurance is a must when traveling.
- Medical air rescue
Travelers with medical conditions that are not predictable are encouraged to buy this policy, it is designed to make swift evacuations back to your country or a desired medical facility, you must never be caught in this situation without this cover as it will leave a big dent in your finances.
- Canceled trip.
This is when you have canceled the trip due to some situation beyond your control, travelers usually make a payment or make deposits in advance before they travel, and in almost all cases if they cancel it's not easy to get that money back so a trip cancellation insurance policy will save you from losing all that money.
- Trip breakup or trip interruption.
This type of travel insurance will take care of the expenses you will incur when your trip has had to end sooner due to some reason eg sickness or some urgent situation back home.
- Luggage lost or luggage delayed.
I went to Victoria Falls in 2015 and on my arrival, my 2 suitcases could not be located I spent the whole day at the airport that is when it was discovered that my luggage was left behind, at least I had a sigh of relief, but my happiness was shortlived when I was told that they would put the suitcases on the next plane which is booked to come in 4days later. I had no clothes and I had to make a plan I had to buy some clothes for these few days.
Lost luggage insurance will reimburse you when you encounter such a predicament, and you will also be covered if the worst happens.
- Complete package.
As its name implies it's a complete package or all-inclusive travel insurance cover.
This policy is designed to cover all of the above-mentioned situations, its main drawback is its price it doesn't come cheap but on the positive side, it will cover you in most situations.
- On standby call assistance.
This should come standard from all insurance providers, it comes in handy, especially for those with medical conditions that might need abrupt intervention.
- Car rental accident cover.
Back in the day, it was impossible to move around in a foreign country without a tour guide driving you around but now it is a thing of the past thanks to the introduction of car rental accident cover, as long as you present your policy you can rent a car anywhere and be able to move around with you family without you privacy being invaded.
With the introduction of the GPS navigation system for public use in the early 1990s, driving in a foreign land has become a stroll in the park.
Travel insurance jargon #3.
Non-refundable travel expenses: These are expenses that the traveler has incurred for a trip and they usually are deposits made for accommodation air tickets, these will never be reimbursed.
Pros and cons of travel insurance.
As predominant as it is, it's amazing how some people choose to embark on vacations without any form of cover, there is, of course, a lot of evidence of rejected claims after a person has purchased a policy.
Well, let us delve into why you need to be insured before traveling and we will also take a look at why some people develop cold feet whenever this topic is raised, one must surely develop cold feet because of some of the pitfalls that you might find yourself in after signing a travel insurance policy without understanding its terms and conditions.
Pros.
- You will be refunded for lost items.
- No stress at all knowing that you are covered.
- Travel insurance will cover you medically.
- You will save money as time goes on.
Cons.
- Buying travel insurance can be very costly.
As I have alluded to on the above point it will all look like your insurance provider is just milking you and the most common feeling at this stage is that this whole thing is just a waste of money.
- Your claim can be rejected.
Imagine that you have faithfully purchased a policy and you don't know that there is a small technicality that you overlooked, you just went ahead and put pen to paper and you were given coffee in the office and shook hands with the insurer and made a toast to a long and fruitful relationship only to be told that they can not reimburse you because of a very small sentence that you probably didn't understand and simply ignored it, what a bitter pill to swallow.
This scenario is not hearsay, it is very real, many people have lost money through this kind of problem, and you must peruse the document in and out before you commit yourself or have your financial adviser with you to help you.
- Pre-existing medical issues may be covered at an extra cost.
If you know that you have a medical condition that may rear its ugly head at any time then you need to get prepared to fork out even more money, it doesn't come cheap
Travel insurance jargon #4
Exclusions: These are expenses that the insurer is not willing to reimburse you even if you yell at the top of your voice, for example, if you injure yourself while jogging or playing some soccer, you are on your own.
How to choose the right travel insurance.
There are various factors to include when choosing a travel insurance policy depending on your personal needs and requirements, every policy has to be tailormade to suit your very specific needs, let's look at how you can go about this process.
- Don't go anywhere before checking with your present insurance provider if you have one.
Your very first port of call is to confirm with your current insurer who is providing you cover for other insurance policies like medical or life cover, chances are that they already provide their existing clients with free travel cover or you have to top up a small amount, most banks provide their clients with free travel insurance, sounds good right?
- Check if the destination is covered, be sure of this!
This problem is common in cases where your destination is a certain country and that country is covered but there would be a specific region where there is a war of some sort and it would be not covered, If something goes horribly wrong there you won't be reimbursed and you will kiss your money good by, this has to be checked and confirmed.
- Am I covered for medical emergencies?
This is of grave importance, you should know that if you are to fall sick out of nowhere you will be safe financially.
- Lost valuables.
There are many items that you can't do without when you are traveling, eg, passport and credit cards, if these were to get stolen or somehow got misplaced you might get a heart attack.
It is wise to check what personal belongings your policy covers, gadgets like laptops and cell phones are usually not covered.
- What is the duration of the policy?
Care must be taken on this issue, first things first you must establish what type of traveler are you, are you a one-time traveler, or do you travel frequently? if you are a frequent traveler you must choose the one that will cover you for a longer period, this will serve you the inconvenience of having to buy a policy every time you travel and hence you save money.
- Do check your claim limit.
People tend to overlook this clause, where the insurer will stipulate in clear print that, for a $5000 trip they are willing to pay $3000 when you claim, the claim limit usually differs from one insurer to the other.
- What am I not covered for?
Missed flights, undisclosed underlying medical issues, mental problems, alcohol, and drug abuse, suicide, and deliberate self-injury are some of the issues that most insurers do not tolerate, be sure of what your policy doesn't cover.
Travel insurance jargon #5
Co-Insurance or Co-Pay: Refers to the amount paid by the policyholder after payment of the deductible is completed.
What to do if you need to make a claim.
Making a claim is pretty basic, if you encounter a problem before or during your trip simply contact your insurer and make the step-by-step means of filing your claim, always provide supporting evidence of documents, photos, or videos where possible to make your case stronger.
Conclusion.
It remains your duty as a traveler to check and double-check the policy you wish to purchase and do not be lazy to shop around if you are not happy with what you are seeing, a travel insurance policy is the best thing you can fall back on when you come across inconveniences or when the worst happens.
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