Travel insurance is insurance that is intended to cover medical expenses and financial (such as money invested in nonrefundable pre-payments) and other losses incurred while traveling, either within one's own country, or internationally.
Temporary travel insurance can usually be arranged at the time of the booking of a trip to cover exactly the duration of that trip, or a more extensive, continuous insurance can be purchased from travel insurance companies, travel agents or directly from travel suppliers such as cruise lines or tour operators. However, travel insurance purchased from travel suppliers tends to be less inclusive than insurance offered by insurance companies.
Travel insurance often offers coverage for a variety of travelers. Student travel, business travel, leisure travel, adventure travel, cruise travel, and international travel are all various options that can be insured. There are four major types of travel insurance, although you can also purchase packages that offer several options, including Trip Cancellation, Lost Baggage, Medical, Dental, Emergency Evacuation, 24 Hour Traveler Assistance, Baggage Delay, Travel Delay, and Accidental Death Coverage’s. Some policies also have options for Collision/Damage coverage for rented cars.
Types of Travel insurance
• Single Trip Travel Insurance
Single trip travel insurance covers you and your family for a single trip or holiday you intend to travel. It includes the basic cover of trip cancellation/interruption and medical travel insurance for the period of your travel, which is limited by some companies. The additional coverage is offered as a part of packages or is your choice to include.
• Trip Cancellation Insurance
This would reimburse you if the cruise line or tour operator goes out of business. It would also provide coverage if you have to cancel the trip due to sickness, a death in the family or another calamity listed in the policy. In addition, if you or an immediate family member becomes seriously ill or is injured during the trip most policies would reimburse you for the unused portion of the vacation.
• Medical Travel Insurance
Medical travel insurance policy covers health related items that occur during the term of the policy and not already existing ailments. The applicant needs to declare pre-existing medical condition before travel and in case of any pre-existing ailments there is a separate package that involves pre-existing medical travel insurance. If any information as to a pre-existing situation is concealed you cannot claim for insurance if any symptom related to the pre-existing ailment occurs.
• Accidental Death and Dismemberment Insurance
This type of insurance is also known as AD&D insurance, pays you, or your beneficiary (or your estate if you do not name a beneficiary) a lump sum benefit (e.g., $500,000) when an accident results in your death or the loss of a limb or the loss of your eyesight.