Is Travel Insurance Really Necessary?
Travel is already expensive enough,
isn’t it? The cost of air fare, cruises, hotels, ground transportation,
food and activities and entertainment are already high enough. I don’t
know about you, but I work hard for my money, and when I travel, I want
to keep as much of my money in MY pocket as possible. Is travel
insurance a necessity or a luxury? Why not cut a few corners here and
there. Why buy something if it’s not really needed?
My personal answer is, of course, that I
am not independently wealthy and can’t withstand the potential
financial losses I would incur if I require medical care while I’m
traveling. Not being independently wealthy also means that I’m in the
market for adequate but cheap travel insurance. I suspect that you are
in the same position, so you, too need cheap travel insurance. If you’re
still not sure about that, consider the following.
Did you know that if you get sick or are
injured while traveling abroad, your medical plan may not cover all the
expenses you will incur? If the costs of treatment are higher than the
maximums of your medical plan, you will be responsible for the
difference, unless you have already purchased travel insurance. In fact,
you may not even be admitted into hospitals in some countries without
proof that you have health or medical insurance.
This is true for everyone, regardless of
age or length of time abroad. Suppose you fall ill just a few hours
after arriving at your destination. Or suppose you make a day-trip to
another country, and you are injured in a traffic accident. Or suppose
one of your children is part of a group making a class visit abroad,
gets food poisoning and requires hospitalization. In all cases, without
adequate travel health insurance, you will be responsible for the costs
above and beyond the limitations of your existing medical plan.
Therefore, before going abroad, you need
to make sure that you are adequately covered by travel medical
insurance that won’t break your budget. You should check to see if
appropriate coverage is already available to you through your medical
plan, employee benefits, or even through a credit card. If the coverage
is sufficient for your needs, then you can enjoy your trip without
incurring the extra expense of travel insurance. However, if you are not
sure of your coverage, or if your coverage is inadequate or
non-existent, then your next step should be to research and purchase the
travel insurance coverage you need.
How Much Can You Expect To Pay?
When I bought my first plane ticket to
China a few years ago it cost around $2000 round-trip, and my travel
insurance cost me over $500 because I didn’t shop around for cheap
travel insurance online.
A few years later, a little bit older
and wiser, and my travel insurance for another trip to China cost me
much less–about $300 for roughly the same coverage. The difference?
Before buying my travel insurance for the second trip, I shopped around
online and got the coverage I needed, at the right price. If I’d have
purchased my travel insurance for this latest trip from my travel agent,
it would’ve cost me about $600 for the trip, and my plane tickets only
cost $1,500! Not exactly the smart way to go.
So how much will it cost you? Not as
much money as it will cost you if you get sick or injured abroad and you
don’t have any travel insurance coverage! That’s the obvious answer to
the question.
In fact, how much travel insurance costs
will depend on your age and the type of coverage you choose. Basic
policies cost as little as $5.50 USD per $1000 of coverage. On the other
hand, you can expect a full coverage policy to cost you from 7 to 10%
of the cost of your trip, depending on your age. The older you are, the
more you will pay. No matter what the cost of the policy, however, it’s
sure to be much less than the cost of medical evacuation!
The good news is that you can easily,
conveniently and quickly research and locate excellent but cheap online
travel insurance and reduce the costs while making an informed purchase.
This is much better than taking what you are offered at the travel
agency because you can choose from hundreds of travel insurance
companies and polices and save yourself a lot of money in the process.
One place you can start your search is at Travel Insurance Central,
[http://www.travel-insurance-central.com]
What You Should Consider When Buying Travel Insurance
To assist you in your research, here are some suggestions to help you make an informed purchase.
1. Consider the worst-case scenario. If
you can financially withstand the worst-case scenario then maybe you
don’t need travel insurance or maybe you don’t need a comprehensive
policy.
2. Make sure the policy you are
considering provides adequate medical/dental coverage, including medical
evacuation coverage just in case you need medical care in a place where
the best treatment available is below the standards you are accustomed
to in your country. This can happen if you fall ill in a developing
country or even on a cruise ship.
3. Check your existing insurance
policies for possible coverage. There is no sense in paying more for
what you already have in your homeowner or tenant policy, such as theft
and loss coverage.
4. If you are a frequent traveler, you
should consider annual or year-round travel insurance policies.
Sometimes they are called multi-trip travel insurance policies. Whatever
the name, these policies can be relatively cheap when compared to
single-trip travel insurance policies.
5. Know what you are buying, so read the
fine print. Make sure that you understand what the company considers to
be a legitimate reason for cancellation or interruption. If the list is
too restrictive, maybe you should consider another policy.
6. Don’t restrict yourself to buying
only from your travel agent. He/She will probably only have one
company’s product(s) available, and it’s there for your convenience, but
that convenience can be quite costly!
7. Ask lots of questions about the
coverage. Play the “what if” game. Ask for clear explanations of
terminology. Make sure that you and the travel insurance company are
speaking the same language.
8. Don’t buy the insurance through your
transportation provider. If the airline goes bankrupt, how adequate will
your insurance coverage be?
Once You’ve Bought Your Travel Insurance
Remember that your travel insurance
policy covers you between certain specific dates, so don’t start your
trip early or extend your trip without first changing the dates of
coverage on your travel insurance policy. Of course, this might cost you
extra, but that’s cheaper than finding yourself without coverage when
you need it the most.
Also, it almost goes without saying that
you should bring your travel insurance policy with you when you go
abroad. You can’t consult the policy if it’s sitting on your desk at
home. You should also carry your travel insurance company’s toll-free
assistance phone number and other contact information with you wherever
you go. It does you no good if you get ill or hurt and the necessary
policy information is sitting in your hotel room. It’s also a good idea
to bring your regular medical coverage cards and info with you.
I hope these tips will help you by the
best travel insurance for you. Then take your trip with the peace of
mind that comes from knowing that you are insured by the right travel
insurance policy at the right price. Bon voyage!
By : John M. Bartanus
(source: http://www.aseantourism.info/date/2012/03)