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. 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!
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