A Quick Guide to Understanding Travel Insurance

February 13, 2020

Due to the number of people who want to travel and the high revenue percentages on each plan sold, travel and trip insurance can be exciting and lucrative additions to an insurance professional’s portfolio.

But first, let’s make sure that we understand what travel insurance is and why it’s so important. There are two basic types of travel insurance—trip insurance and travel medical insurance. 

Trip Insurance usually refers to trip cancellation insurance, a type of plan that reimburses travelers if they are unable to take or complete their trips. Trip insurance helps to protect travelers from suffering complete financial loss of certain prepaid expenses including flight bookings, hotel costs, missed flight connections, lost baggage or passport and rental car booking costs. This kind of insurance can help travelers who are worried about being unable to complete their trip for reasons outside of their control. Although the specifics of each claim and what insurance companies will over varies, the following are usually covered by trip cancellation plans: 

  • Illness and death of travelers or their loved ones
  • Complete cessation of travel services due to strike
  • Terror strikes at the traveler’s intended destination
  • Inclement weather
  • Travelers are summoned to appear in court
  • And more

Travel Medical Insurance refers to plans that help travelers with costs should they need to visit a doctor or hospital while they are traveling abroad. Also known as temporary medical insurance, these plans usually cover new illnesses, conditions and injuries that a traveler might encounter while away from their home country. Most of these plans will not cover care for pre-existing conditions like heart disease, but may cover “acute onset” of symptoms, such as a heart attack, provided that the patient has been taking reasonable precautions and following their doctor’s instructions. In short, a travel medical plan will not cover a traveler like his or her normal medical insurance would, but instead is designed to cover policyholders in the event of catastrophic and/or unexpected events that require immediate medical attention. 

For those that choose to invest in travel insurance, the major benefits include:

  • Financial Protection: Like any insurance, travel insurance is a service that is designed to protect the insured from the worst-case scenario. Emergency medical care can be prohibitively expensive, especially in countries with high health-care costs like the United States and Japan. Similarly, canceling travel plans can mean losing a substantial amount of money. With Travel insurance, your clients can be protected from excessive financial burdens if something happens to disrupt their travel plans. 
  • Peace of Mind: Travel insurance is the ultimate tool for savvy travelers to ensure that their trip goes smoothly. No matter if they are forced to change their plans at the last moment or require the assistance of medical professionals while abroad, your clients will be able to rest assured that they will not lose thousands or even hundreds of thousands of dollars to circumstances outside of their control. 
  • More Fun: Traveling and experiencing new cultures is one of the most fulfilling and exciting things that people can do, but it can be very stressful as well. By removing barriers like cost and worry, travelers can have a better time and truly enjoy their time abroad rather than worry about what could go wrong. 

Want to Learn More?

Does travel insurance intrigue you? Would you like to know more about selling travel insurance or TMQuotes? Email us at info@tmquotes.com to learn more.

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