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The wise Shopper's Guide to selecting the right Travel Insurance plan for you
Travel insurance is intended to protect your travel investment and, if needed, to protect your health and that of your family. Like all insurance, travel insurance protects you against certain risks which can lead to loss of money. When those risks also involve your health, travel insurance aims to ensure that you have access to proper care and to bring you home safely.
But before you can choose your plan you need to know what risks you want to cover so you can select a plan with the closest match to your needs.
" What is the cost?
The cost will vary with the package you select. In addition, the cost can vary within a package if the insurer allows you to select higher or lower limits on each included benefit.
The cost is also affected by the total cost of your vacation package. Thus if you are taking a deluxe vacation with a high sticker price the travel insurance plan will be more expensive. This is because the size of the reimbursements required in the event of trip cancellation, for example, will be higher than if you had elected an economy vacation. As a rule of thumb, the cost will be about 5% to 7% of the cost of your prepaid vacation.
" What else influences the cost?
Your age and the ages of those traveling with you will affect the cost. As we age we are more prone to illness so the health-related part of the plan will increase in cost. Some insurers will not offer coverage to persons over the age of 65.
" Where can I buy travel insurance?
The most obvious place is your travel agent. Most travel insurers use travel agents as distributors of their plans. Sometimes the plans offered by travel agents are inflexible and may not suit your needs. Moreover, if the travel agent has not paid your premium to the insurer and goes bankrupt you will not be insured.
" Where else can I buy travel insurance?
Most travel insurers offer their plans on-line through the Internet. There are a number of sites which aggregate the top plans and allow you to get quotes based on what you want your plan to cover. These sites also allow you to drill down and review and compare the benefits offered by each. They also allow you to read the relevant policy wording.
" Should I buy the cheapest plan?
Sometimes the cheapest plan will also fit all your needs. If this is the case, by all means buy it. However, life is rarely so kind. The plan that fits your specific needs is the correct one for you, even if it costs a little more. Of course, this implies that you have determined what coverage and limits are right for you based on who is traveling and on any special health needs they may have.
" My son has asthma. Will he be covered?
When you or someone traveling with you suffers from a specific medical condition it is important to advise the insurer of the details. Insurers call such conditions "pre-existing conditions". As you can imagine, a pre-existing condition which increases the risk for the insurer is a material fact. In most cases insurers accept these risks. To be sure that the condition is covered you should check the pages of the policy that relate specifically to you to ensure that the condition is mentioned and the insurer's acceptance of it is also clear.
" Do I have to read the policy wording?
You really should. All other material you may have received is marketing material. Even though the marketing material will be accurate it is designed to catch your attention and briefly outline the benefits. To get the details you should read the policy wording. This is not like reading the fine print. More and more, insurance regulators require policy language to be written in a consumer-friendly manner, making your job easier.
In summary list the areas that concern you most, use this list as a guide when you evaluate coverage, check the details related to your areas of concern and buy the plan that gives you the most comfort.
Happy vacation! Remember, the best travel insurance is the one you never have to use. After all, its just in case.
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