Frequently Asked Questions by Consumers on Travel Insurance

This guide covers travel insurance. In the following paragraphs, we will cover A Little TIDBIT About “Travel Insurance”. So, here we are again, another summer season around the corner and you’re contemplating your next summer vacation with the family or perhaps simply a romantic getaway, with just you and your significant other. You can’t decide whether to put down money for a tour, a cruise or simply another big vacation. Dale Elenteny, a senior loan officer and an associate contributing editor of GCA Forums says the following about travel insurance:

Well, here are a couple of things to think about in today’s world of travel concerns. The world is an ever-changing place. Some for the better and some not so.

With terrorism on the rise and the “Zika-virus” in the headlines, you might wonder (What If I decide afterward not to go, can I get my money back?). Well, have you ever considered travel insurance? As most of us probably not but perhaps now is a good time to consider it and include travel insurance as part of your trip/vacation. In this article, we will discuss and cover travel insurance frequently asked questions by consumers.

Kinds of Insurance Policies

Whether and what kind of polices to buy depends on your individual needs and situation. Most travel insurance policies offer trip cancellation/interruption insurance. Insurance companies can reimburse you for non-refundable prepaid travel expenses if you cancel or interrupt your trip. Most also offer medical and medical evacuation coverage

Insurers can reimburse you for emergency expenses if you get sick or injured on your trip (Your domestic health insurance probably won’t cover you abroad). But does it apply to today’s concerns? After last fall’s attack in Paris, folks who had planned trips there didn’t want to go and people were able to cancel their trips. You typically can do so if there is a terrorist event at your destination within 30 days of your arrival date. Pregnant women understandably fear traveling to places where the mosquito-borne “Zika-virus” has been reported. Let’s say you became pregnant after you bought your policy, the pregnancy can be a covered reason to cancel your trip in most cases.

The Cost of Travel Insurance

The cost of travel insurance can range between 5 and 8 percent of your trip cost and is available through your travel agent or directly from a provider. Just keep in mind that policies come with exclusions and exceptions, many of which can be remedied by buying early. To secure some time-sensitive benefits, such as a waiver for a pre-existing medical condition, you typically need to purchase travel insurance within 14 days of making your initial trip payment. It is always recommended buying insurance at the time you book your trip.

What if you just changed your mind? Some carriers offer (cancel-for-any- reason) policies, but they can cost as much as 20 percent more of your trip cost. If you’re the type that travels frequently, perhaps you should consider an annual travel policy, which covers you for however many trips you take in a year, domestically and internationally. Like an automobile, home and health insurance do your due diligence and check around with different insurance companies. This can easily be done online to see which policy best fits your travel needs. Happy and safe travels to all.

Travel Insurance FAQ

Investigate All Your Travel Insurance Questions Here:

What is Travel Insurance?

Such a policy is called travel insurance, and it covers unexpected events such as trip cancellation, medical emergencies, lost luggage, and travel delays.

Is Travel Insurance Compulsory?

• Yes, it is advisable to purchase travel insurance if
• You are traveling abroad.
• Your trip incurs too many costs.
• You have a paid booking that cannot be canceled.
• You wish to mitigate the risks.

What Does Travel Insurance Cover?

In most policies, the following are covered:

Trip Cancellation/Interruption:

• Refund of non-recoupable costs incurred.
• This is because of the cancellation of the trip.

Medical Emergencies:

• Medical expenses, non-medical and medical evacuations while abroad.

Lost or Delayed Luggage:

• Compensation for items lost, stolen, or delayed.

Travel Delays:

• Incurring more damage than what is covered due to delays of any form.

Emergency Evacuation:

• Movement to the nearest medical center.

Cancellation and Interruption Of Trips

What reasons may cause a person to cancel a trip and are covered by the insurer?

The most common and standard reasons for covered events are:

• Sickness, injury, or death of the traveler or a close relative.
• Bad weather conditions or other natural disasters.
• Attendance at a jury or civil service is a compulsory duty.
• Strikes of airlines and going into bankruptcy.

If a person cancels a trip after purchasing travel insurance due to pandemic-related reasons, does travel insurance cover such trip cancellation expenses?

The Ministry of Insurance in some countries has started to cover COVID-19-related issues like –

What does Cancel For Any Reason (CFAR) mean? Is it worth it?

• It is important to know that marital problems can lead to an abrupt trip cancellation.
• But fear not—the canceling foul includes unwanted family outings, month-long camping holidays, or any unwanted trips.
• It is safe to assume it will get a wee bit hard to deal with!
• However, the amount you will be reimbursed varies from policy to policy and is around 50%- 75% of the non-refundable amount.

Medical Coverage

Can traveler’s Insurance cover pre-existing conditions?

• Early booking is the way to go, especially when traveling and being secured with insurance coverage.
• Insurance covers pre-existing conditions only when they are stable and when the policy is purchased within the abovementioned time frame.

Can I travel worry-free if I have medical emergencies abroad?

• Yes, most policies provide a range of Coverage, including emergency treatment, hospital stays, and medical evacuation to the nearest hospital or back home.
• Travel insurance forgot about me, so there is no option but to fit for insurance for all the recovery processes.
• Insurance for a medical evacuation is rarely included in standard or regular health insurance.
• You couldn’t fit it because it did not fit your travel permit.

So, is buying travel insurance a must for all travelers?

• You are best advised to incur a reload.
• Money often helps when you do not want to use it but must have it.

Traveling Internationally without an insurance cover is foolish for the reasons below:

Luggage and Personal Belongings

• I already have sound insurance. Is there a need to cover my bags under travel insurance if I spend a lot on covering travel insurance?
• Most policies provide extensive Coverage, including lost luggage, theft, and prolonged and delayed accessories.

Disruptions and delays during Vacation

Can the traveling insurance pay for the rescheduled flight?

Yes, the travel insurance can repay out-of-pocket expenses that have been caused by waiting, which includes the following but not limited to:

• Accommodation, meals, or any form of hospitality.
• Re-booking fees that went overboard.
• Expenses were lost due to missed connections that had already been paid for.

What does Coverage of trip office interruption mean?

Suppose there is a covered reason why the remaining part of the trip needs to be shortened. In that case, the cost will be compensated for the part that wasn’t utilized, together with the incurred expenses.

Travel Insurance Categories

Give an example and explain the types of travel insurance.

Various Plans, Combined:

• This plan covers many risks, including cancellation, medical issues, and checked baggage.
• Schemes focusing only on health care, such as medical-only and emergency evacuation plans.
• Plans offered by service providers to cover multiple trips in one year.
• Operating insurance protects against terrorism, hijacking, fencing, ski-diving, scuba diving, and other activities.

Is it preferable to purchase travel insurance for each trip or annually?

Policies for Individual Trips:

• It should be considered by people who travel sporadically.

Economic Plans:

These are useful if you must travel continuously or frequently.

Buying Insurance for Travel Purposes

When is the most appropriate time to book travel insurance?

The strategy should be to buy as soon as the trip is booked, so there is a trick called Coverage.

Many benefits, such as CFAR or pre-existing condition waivers, must be bought early, generally between 14 and 21 days after the primary booking.

At what price should I expect to pay for travel insurance?

Everything usually varies from 4%-10% of the total cost of the trip.

The most important factors are the trip cost, location, age, history, and type of travel.

Can you purchase travel insurance after the trip has started?

Their plans may require approval; however, the scope may be slightly smaller.

Claims and Coverage Limits

What is the procedure for claiming travel insurance?

• In case of any such eventualities, alert your insurer without delay.
• Collect necessary evidence, such as purchase invoices, certification from medical facilities, and tickets for future events and those canceled.
• Apply for travel insurance claims along with requisite documents.

In general, why does it take so long to get a refund?

The refund period varies between 1 and 4 weeks, depending on the case and the relevant documents provided.

Are there any limitations regarding the Coverage?

Yes, there are restrictions on the purchase of certain policies:

• For medical services.
• For loss of personal luggage.
• For reimbursement of cancellation of the policy.
• The limits may vary depending on the specific policy owned.

Adventure and Special Activities

Are travel insurance for active sports available, or will it be an exclusion?

Travel insurance policies in Canada may be advertised to cover fully comprehensive insurance. Still, they may not cover scuba diving, mountain climbing, or skiing as advertised.

Such activities are offered additional insurance coverage options.

Can you go on a cruise if you have travel insurance?

You can, but make sure you have the appropriate policies for a cruise that cover the following:

• Where the departure will be missed.
• Having any medical problems whilst on board.
• Having to interrupt a cruise.

Exclusions  

Which areas does a travel insurance policy not cover?

A few examples of exclusions are:

• Deliberate Actions or illegal acts.
• Traveling to areas or countries that are contrary to government-employed travel restrictions.
• Previously existing medical conditions and any new medical condition without a waiver.
• Areas of mental health unless specifically mentioned.

Does the travel insurance policy cover war and terrorism?

Such policies may include terrorism.

But in most policies, acts of war are excluded.

COVID-19 and Pandemic-Related Questions

Are quarantines covered under travel insurance policies?

Certain policies may cover quarantine expenses if you obtain a positive result during the travel. Define specific policy coverage.

In case my destination prevents entry, what happens then?

• “Trip Cancellation for Any Reason” (CFAR).
• Private travel insurance policies may assist, although they rarely cover this hazard without such a provision.
• Traveling creates additional worries, but insurance policies protect one against disruptions, emergencies, and losses.

Enjoy your trip, buy Coverage that matches your needs, and always check the policy wording.

The Author of Travel Insurance

Alex Carlucci is the author of Travel Insurance and a professional real estate investor. Alex is a senior loan officer and an associate contributing editor and writer for Gustan Cho Associates.

Alex is also an expert in all areas of renting out investment properties. Mr. Carlucci recently purchased a condominium in Panama City, Florida. It has rather difficult financing due to being a condotel. Most banks do not lend on non-warrantable and condotel loans because they are not able to sell the loans they originate to the secondary market.