Travel Insurance to the Rescue
Not every trip justifies travel insurance, but for that big ticket, overseas, once or seldom in a lifetime excursion, travel insurance is at least worth considering.
Travel insurance can help protect you from the cost of changing or cancelling travel plans due to unexpected events such as illnesses, bad weather and sometimes extensions of the school year or work emergencies that require you to change plans. The typical travel insurance policy includes one or more of these coverages:
- Interruption coverage: This coverage reimburses you for nonrefundable costs due to trip cancellation, interruption or delay in situations arising from conditions such as carrier delays, illness, bad weather or baggage loss. To receive reimbursement, the reasons for cancellation, interruption or delay must meet policy terms and not subject to policy exclusions (see below).
- Medical insurance: Travel medical insurance policies cover emergency or urgent medical care you need while traveling outside the U.S. and its territories. This often includes coverage for medical evacuation to the U.S. or to a facility that can handle your condition. Be sure to get reasonable limits. The U.S. State Department notes that medical evacuation alone can cost more than $50,000, on top of any emergency treatment you may require.
- Emergency assistance: Perhaps the fastest-growing type of coverage, this offers 24-hour assistance, provides help finding doctors, helps arrange accommodations, contacts your family or arranges other assistance in case of emergency.
General Exclusions
There are usually many exclusions, so read the policy but here are some key ones:
- Any loss, condition, or event that was known, foreseeable, intended, or expected when your plan was purchased are excluded. For example, if you buy travel insurance when a named hurricane is already forecasted to hit your destination, storm-related losses would not be reimbursed.
- Epidemics — this is a timely exclusion to be aware of these days. (See our sidebar about Travel Insurance and the Coronavirus.)
- Normal pregnancy or childbirth, though often policies will cover unforeseen pregnancy complications, such as pre-eclampsia or gestational diabetes.
- The use or abuse of alcohol or drugs.
- Participating in extreme, high-risk sports and activities.
Do You Really Need Travel Insurance?
Travel insurance costs roughly 4 to 8 percent of the cost of a trip. Is every trip worth insuring? The U.S. Travel Insurance Association recently released a survey that found one in six Americans (17 percent) have had their travel plans affected by medical conditions, natural disasters including severe weather, or mechanical or carrier-caused problems.
Only you can decide your appetite for risk, but things to consider include the cost of the trip, ease of rescheduling and your health. In addition, bad weather, financial instability among airlines and other travel providers and political situations such as strikes and protests can all increase the likelihood of travel delays or cancellations. Travelers should be familiar with the cancellation policies of their hotels, tour providers, cruise lines or other travel service providers.
For assistance with travel and other types of insurance, please call us.
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Travel Insurance to the Rescue
Important Travel Insurance Add-ons
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