There are many who know about the importance of travel insurance these days. This is because,people travel extensively for pleasure or business, and are aware that they need protection against untoward incidents. Basically, a travel insurance policy is designed to cover unexpected emergencies such as sudden illnesses, accidents, trip delays, lost baggage, loss of personal documents, or any other personal loss incurred while travelling. And most importantly to stay prepared to face any adverse situation.
There are many different kinds of insurance policies with different levels of coverage depending upon
- The travel plan (short term, long term, domestic, international, multiple countries)
- The coverage amount
- The insurance company you buy the policy from
- Number of people travelling
However, most travelers have this misconception that a common type of travel insurance policy will work for everyone. This is far from being true. A domestic travel is different from an overseas travel. A personal travel is different from a business trip. Similarly, a family trip is different from an individual trip. Every travel trip is different and so is its insurance needs and you cannot expect one travel insurance policy to cater to all kinds of travel needs.
There are certain situations which are not covered by a general Travel Insurance policy and demand higher travel insurance cover. Let us have a look at such situations when you should extend your policy for more coverage:
When a Traveler is Aged 65 Years or Above
Insurance companies hike up premiums when a traveler is aged 65 or above due to the probability of illness in old age. It can be 60 years for some companies too! Considering that insurance premiums are based on the age of the oldest traveler (in a family/group insurance policy), if a traveler is 65 or above, it is a good idea to buy an individual policy for him/her. These policies are designed to cover the common ailments suffered during old age and hence have high premiums.
Also, some insurance companies increase the coverage as well as the scope of coverage with some additional premium. If you are planning a long-distance or a long-duration travel with an elderly, it clearly makes sense to buy added insurance coverage for them.
When you Need Coverage for a Pre-existing Medical Condition
While travel insurance companies provide medical coverage in case of sudden illness, medical emergencies or accidents, they do not cover for any existing ailments. Most travel insurance policies do not cover a pre-existing medical condition you have and you may need to purchase an add-on policy to cover you for that disease.
However, if the disease is something that may bother you during the trip, it is a good idea to spend on add-on cover to have peace of mind. It is always better than getting stuck with a fat medical bill after the trip. When buying the add-on cover, note the medical exclusions and conditions for your travel insurance policy.
When You are a Frequent Traveler
If you have a business that demands you to travel multiple times during a year, it makes sense to buy an annual travel insurance policy rather than individual policies. Annual travel insurance policy will cost you more initially,but if you calculate the price for multiple travel insurance policies, an annual travel insurance policy will turn out to be more cost-effective. And the extent of coverage is high too! Also, in many cases, an annual insurance policy comes with added benefits and extended coverage.
Apart from the monetary savings, an annual insurance policy prevents the headache of buying a travel insurance policy (and filling the forms again and again) every time you travel. You can travel with peace of mind, knowing that you care covered.
When You Hire a Vehicle or Motor Bike
If you intend to hire cars, bikes, boats or any other motorized vehicle during your travel, check if it is covered under your travel insurance policy. Find an insurance company that will cover the high deductible/excess fees should you damage your rental car. Do not forget to check the fine print for any restriction that may apply such as riding without your home country’sdriving license, or not wearing appropriate safety gear.
Also, check if your travel insurance covers for accidents caused when driving a rented vehicle.
When You are Travelling Indefinitely
If you are travelling indefinitely, it is difficult to find a policy that covers you. Most travel insurance policy covers you for a maximum of 12 months. So go with the best case and get it for 12 months. After a year, renew your policy with the same company or buy a new policy from some other company. Even when a policy is available for a longer duration, it is wise not to lock in your money with something for too long a period. Especially, if you are taking breaks in between trips or spending quite a bit of time in one destination.
Every trip is unique and there are chances that your requirements will not be met by one policy cover. In such cases, it is always wise to buy add-on cover to extend the coverage limit. One very important criterion while buying the add-on cover is to understand every term and condition of the policy in details. This will help you understand the fine print and make informed decision about whether the added investment is worth it or not.
