There are a number of unexpected problems that might occur when traveling overseas or even just a long distance within the country. Travel insurance is designed to cover these types of situations so that any individuals who encounter serious issues can be physically safe and financially compensated. There are several types of travel insurance that have been crafted to cover a variety of scenarios that can be encountered while away from home.
The most common type of travel insurance is medical insurance. This is a program that is designed to pay for any medical attention that is needed while an individual or family is traveling overseas. Some plans will cover a local visit to a clinic or hospital while a more comprehensive plan might include medical air transport to a modern facility. This insurance can be very important for people who are traveling to countries that have very few hospitals. It is also useful for people who will be performing potentially dangerous activities like mountain climbing. It should be noted that some foreign clinics will still require immediate cash payments from the patient before treatment regardless of potential insurance reimbursements.
Another type of travel insurance that is often purchased through travel agencies is cancellation or interruption insurance. This is a policy that covers any financial losses that occur due to the unexpected cancellation of flights. Certain policies will refund the cost of airline tickets, hotel rooms and other payments that would otherwise be non-refundable to ensure that the traveler does not lose money for services that were not delivered. These policies can also cover the costs of interruptions such as missed connections, sudden changes in schedules or mistakes on the part of an airline that stop individuals from reaching the destination as intended. Very detailed insurance plans can pay for extra nights in a hotel, car rentals and even return airline tickets.
There are many other expenses that can be covered by travel insurance. These expenses include the cost of recovering remains from overseas in the event of an unexpected death, the cost of a lawyer if there are legal issues while in another country and even terrorism insurance that can pay for various costs if a family encounters hardships due to terrorist actions. Some policies include coverage for personal possessions so that lost luggage or stolen items can be replaced while on a trip.
Travel insurance always comes with some terms and conditions that should be well understood before signing a policy. There are usually some instances where an insurance policy will not pay for expenses that might seem covered. This includes when the cause of a medical injury is due to drugs or alcohol, or when any loss is caused by activities that are illegal. Travel warnings issued by countries might also negate some types of coverage. Medical travel insurance should be carefully examined as well to ensure that it covers pre-existing medical conditions since some policies will not pay for maintenance drugs or regularly scheduled treatments while a person is traveling.
This was a Guest Post by Brenda Panin a web content writer for Real Insurance. She loves to write about real estate, home improvement and new home decoration trends.