Travelling overseas can be one of the most exciting adventures of your life. But it also is fraught with uncertainty. From random medical crises to the cancellation of a trip, unforeseen liabilities while travelling can be nerve-wracking. This is where travel insurance comes in as an important safety net, one that guarantees you can relax at the thought of your investment in your trip being safe.
In this article, we look at some of the reasons why travel insurance is a must-have on your next trip abroad.
Why Travel Insurance is So Important?
Travel insurance provides a specialised insurance policy that is intended to cover certain travel-related risks. It’s financial protection for the unexpected, life’s inevitable curve balls… call it what you will, it certainly offers peace of mind.
These policies usually cover trip cancellations, medical emergencies, lost luggage and other mishaps on the road. Knowing the various aspects of travel insurance can assist in selecting the appropriate plan that works for you.
Types of Coverage
- Trip Cancellation and Interruption: This protection reimburses you for your non-refundable costs in the event you have to cancel or end your trip early for unforeseen reasons, including sudden illness or severe weather.
- Medical Expenses: Most health insurance plans do not cover medical emergencies overseas. Travel insurance can pay hospital bills, doctor’s visits and even emergency evacuations.
- Baggage Protection: Like lost, stolen or delayed luggage so that you can get some of the essentials you need right away.
- Travel Delay: If your flight is delayed, this benefit can reimburse you for extra costs you pay, like food and lodging.
- Emergency Assistance: Most policies come with 24/7 emergency assistance, such as medical referrals and assistance with a lost passport.
The Importance of Trip Cancellation Coverage
That’s the No. 1 reason travellers buy insurance: to safeguard the cost of a trip through cancellation.
You can never know what might happen in life, and sometimes there may be reasons to cancel trip plans.
Most Frequent Trip Cancellation Causes
- Illness or Injury: If you -or a family member travelling with you- have an unexpected health issue that stops you from travelling, you don’t want to lose your trip investment.
- Family Emergencies: These can range from death in the family or something affecting your home are which would make you want to cancel your plans.
- Natural Disasters: Unpredictable events like hurricanes or earthquakes could be grounds to cancel a trip, and insurance can help recoup costs.
With trip cancellation coverage, you’ll protect your hard-earned money if you’re unable to get on that trip after all.
Medical Emergencies Abroad
If you’re visiting another country, you may have to navigate health care systems that are not your own. Most of the time, your local health insurance will not cover international treatment, and that exposes you to huge medical bills.
What is the importance of Medical Coverage?
- Exorbitant Expense: Healthcare outside Ghana is extremely costly. For example, an emergency evacuation can run tens of thousands of dollars.
- Quality Care: Travel insurance assistance services can put you in contact with providers who are up to U.S. standards of care.
- Coordination of Care: Similar to health care at home, many insurers help patients navigate medical care, a huge relief when you’re in a foreign land.
Protecting Your Belongings
A dream holiday can go disastrously wrong if your luggage gets lost or delayed. Travel insurance can also give you some peace of mind about your belongings.
Coverage for Baggage Issues
- Lost baggage: If your luggage is lost during travel, insurance can cover the cost of replacing your items.
- Delayed Bags: You can be reimbursed for costs for essential items, like clothing and toiletries, if your luggage is delayed.
This protection enables you to get back to your journey with as little interruption as possible, even when your stuff is temporarily out of reach.
Delays and Interruptions to Travel
Airport delays are a fact of life and can be quite inconvenient. Travel insurance offers some coverage when it comes to financial losses related to such delays.
What Travel Delay Coverage Includes?
- Meals and Accommodation: If your flight is delayed by a certain amount, it’s possible your insurance will also pay for your meals and lodging.
- Missed Connection Reimbursement: If you miss a connecting flight because of one of the delays above, your policy may cover the cost of rebooking.
Having this protection brings peace of mind for unforeseen trip disruptions.
Emergency Assistance Services
Travel insurance usually comes with 24/7 emergency assistance services, which is essential under serious circumstances.
Benefits of 24/7 Assistance
- Medical Referrals: When you need medical care, insurance companies can assist you in locating a suitable facility.
- Lost Passport Support: Let’s hope this never happens to you, but losing your passport overseas can be a complete nightmare. Insurance can help cover the cost to replace them.
- Legal Referral: If you get into any legal trouble while on the road, you can obtain referrals for legal help from an in-country legal referral.
These services can be of real assistance when you travel, and you have nothing to be worried about; you are not alone in a crisis.
The Cost of Travel Insurance
Lots of people avoid buying insurance because they think it´s just too expensive.
But the cost of travel insurance is typically a relatively small percentage of your total trip cost.
What Influences the Cost?
- Cost of Trip: The more expensive a trip, the higher your insurance premium.
- Coverage: You will pay more for more coverage.
- Age of the Traveller: The insurance cost may be higher if the traveller is older and they are considered to be at higher risk of contracting diseases.
- Destination: Visiting countries with more expensive medical care can also affect your premium.
But with that said, the price of travel insurance can usually be justified because of the financial security it offers.
When To Buy Travel Insurance?
Timing can be everything when purchasing travel insurance. The sooner you buy, the more plan options you have.
Best Practices for Timing
- Buy Early: You’ll ideally purchase insurance when you book your trip. It’s a guarantee to have coverage for any unfortunate events left haunting you before you take off.
- Know the Policy Limits: Some benefits like Cancel For Any Reason (CFAR) will require that you purchase the policy within a certain number of days following your initial trip deposit.
I tend to think it’s really good to be proactive and get the coverage that suits you best.
Common Misconceptions About Travel Insurance
Despite its value, however, there are a lot of misconceptions that some travellers still have that cause them to either not get it, or get a plan that doesn’t fit their needs well.
Debunking Myths
- “I’m Healthy, So I Don’t Need It”: Health problems crop up on the fly, and medical coverage may be imperative.
- “My Credit Card Covers Everything”: There are credit cards that provide travel insurance, but they are not all-encompassing.
- “I’ll Just Take My Chances”: The financial cost of an unlikely event can be so high that not buying insurance for it ends up being a foolish risk.
By knowing about these misconceptions, travellers are able to make informed decisions regarding the coverage.
How to Pick the Best Travel Insurance Policy?
With so many choices, the decision of which travel insurance to buy can be overwhelming.
Key Factors to Consider
- Plan Coverage: Think about what you want based on where you’re going and what you’ll be doing.
- Policy Limits: Check the maximum benefit limits under different benefits to make sure they meet your requirements.
- Exclusions: Read through the exclusions part of your policy to see what is not covered.
- Reputation of Provider: Check the record of the insurance provider for its reputation and customer service.
Taking these considerations into account should ensure that you select a policy that suits your travel requirements.
Conclusion
Travel insurance is so much more than an extra cost — it’s an investment in your peace of mind while travelling overseas. From shielding against trip cancellations to covering medical emergencies, the advantages of travel insurance make it worth the expense.
Here’s what to know as you make plans for your next trip abroad, along with how to protect yourself. With the best travel insurance for your needs, you can travel with confidence, knowing you’re covered for the unexpected.