The Smart Travel Guide

Travel Insurance Coverage depends on the insurance company issuing the policy. There are four major types of travel insurance – Trip Cancellation Insurance, Baggage Insurance or Personal Effects Coverage, Emergency Medical Assistance and Accidental Death. Below it is a short description of each of the types of the travel insurance.

Trip Cancellation/Interruption Insurance: Is related to the unforeseen occurrence which may determine you to cancel or interrupt

your journey. This generally includes coverage for illness, death or injury suffered by the insured or an immediate member of the family. Most policies do not include insurance for events of war, terrorism or political unrest. Besides, this will reimburse you if the tour operator goes out of business. In general, the cost is 5%-7% percent of the cost of the trip. Moreover, trip delay insurance provides refund for expenses when a trip is delayed. As trip cancellation is concerned, this is very different from the Cancellation Waiver many companies offer and it isn’t expensive, too – 40$-60$. Pay attention, this is not a an insurance and it doesn’t cover you before setting off when many people usually cancel the departure or after the trip has begun.

Baggage/Personal Effects Loss or Delay Insurance: Covers loss of luggage or personal goods, also includes a payment in case your luggage is delayed more than 12 hours to the destination. For example, to insure 2000$ worth of personal belongings for a week, it would cost for about 100$ per year. To insure a 1000$ ring would cost you between 10$ and 40$ a year. This means you’ll have full coverage for the item allover the world for one year.

Many policies include full coverage for medical expenses incurred. In some western countries you may be not charged for medical care you receive. Read the fine print regarding coverage or lack thereof for preexisting conditions.

Accident/Sickness Medical Expenses/Emergency Transportation Insurance: It is recommended for cruise passengers and adventure travelers who are visiting remote areas; it covers emergency evacuation in case a qualified physician decides that you should be evacuated for medical care. It also provides assistance is case of skiing accidents or traveling back home together with a doctor if needed. This amount can increase up to 10000$ because you may book even 10 seats in the airplane.

Emergency medical insurance also includes a telephone number/ service where you can keep in contact with your physician while traveling, cash payment of the insured or beneficiary in the event of accidental injuries or death.

Accidental Death Insurance: This type of policy is provided by certain insuring agencies and should cover the expenses for repatriation of the remains of the insured or his immediate family member.

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