Common Types of Travel Insurance

When planning a vacation, travelers typically ensure that all the bases are covered: a well-packed suitcase, their ticket in hand, transportation arrangements, and accommodations at their destination. Despite a completed checklist and tip-top planning and preparation, sometimes unforeseen events crop up: 1) trip delay or cancellation due to inclement weather or business conflict, 2) trip interruption due to death or illness in the family, 3) stolen, lost or delayed luggage, 4) bankruptcy or strike of a cruise line, airline or tour operator, 5) evacuation due to a hurricane threat, 6) significant travel delays resulting in missed portions of an itinerary, and 7) loss of important documents, to name a few. Fortunately, vacationers may avail themselves of travelers insurance, which acts as a buffer against such emergencies. Travel insurance, which is typically purchased at the time of booking, pays for medical and financial expenses and other losses suffered while on a domestic or international trip. It is particularly useful for big-ticket trips and cruises. Travel insurance companies, travel agents, tour operators, cruise lines, and other travel suppliers sell travelers insurance. The coverage and limitations, as well as the cost of travel insurance vary from one company to the next. Consumers should first decide the insurance type and amount of coverage they need, since there is a wide selection of plans.

International travel insurance policies cover a wide range of situations, including:

• Medical evacuation and expenses
• Trip delay or cancellation
• Emergency assistance
• Trip interruption
• Lost, damaged or stolen baggage, money, travel documents or other personal possessions
• Delayed departure
• Supplier default
• Legal assistance
• Accidental injury, disablement, or death
• Overseas funeral expenses

Consumers may shop for and compare travel insurance plans, benefits, and coverage online. Numerous comparison websites allow visitors to enter the details of their trip and obtain instant insurance quotes from a substantial number of leading travel insurance providers. They may also purchase a policy via the internet by completing a short, secure and confidential application process and providing their credit card information. The travelers insurance company usually mails the policy to its customer and sends him or her an email with the necessary policy information. The client may then print this and immediately board the plane. While traveler's insurance must usually be bought within seven to ten days of the first deposit, some providers sell it up to two months prior to departure.

The following is a brief overview of the most common types of travel insurance in the marketplace:

1. Trip Cancellation/Interruption

This type of insurance policy covers deposits and non-refundable payments resulting from cancellations or interruptions triggered by (1) sudden death, injury, or illness of the policyholder or an immediate family member, (2) weather, (3) a travel supplier's bankruptcy, (4) emergency military deployment, (5) jury duty, or other calamity or unforeseen circumstance enumerated in the policy. Trip cancellation or interruption covers deposits and non-refundable payments.

2. Terrorism Insurance

If the State Department issues a travel advisory warning against travel within a specific country, this insurance policy reimburses the traveler's expenses.

3. Trip Delay

This insurance reimburses expenses caused by a delayed trip.

4. Baggage And Personal Effects Insurance

The policyholder is covered when his or her belongings are stolen, damaged or lost during a trip.

5. Accidental Death

This type of insurance covers policyholders in the event of their death or that of a family member during the trip.

6. Travel Accident Insurance

Generally, this type of insurance plan encompasses natural disasters, trip interruptions or cancellations, hospital and medical expenses, as well as baggage loss.

7. Missed Connections

This plan covers missed connections due to confusing airport terminals or flight delays, among other scenarios.

8. Travel Health Insurance

Travel medical insurance covers policyholders' medical bills while traveling. Medical expenses incurred overseas are not reimbursed by many health insurance carriers in the United States. It is therefore a sound investment for individuals with pre-existing conditions to take out a health insurance plan when venturing overseas. A good travel health insurance policy will offer the following coverage:

• Emergency medical evacuation
• Medical treatment
• Lost luggage
• Hospital expenses and doctor visits
• Trip cancellation
• Emergency transportation
• Emergency medical assistance
• Medication

Medical emergency coverage is especially useful for travelers with a disability, pre-existing medical condition or chronic illness or whose destination is a third world country. Travel medical insurance policies typically cover an extensive range of pre-existing medical conditions, including: