While planning a family vacation, we research and give a lot of importance to the Hotel Stay, Airlines, Tourist spots, Visa, Restaurants etc.
But, when it comes to Travel Insurance – we ask our Insurance Agents or choose the lowest plan and don’t give much importance to it.
Reason : Travel Insurance is seen as a bad thing, Most of our mindset is
- I won’t face troubles during my family vacation
- Why should I focus on a negative aspect – when I want a happy family vacation
- Why should I waste my money on Travel Insurance?
- Buy some plan as I don’t understand their wordings / terminologies
I don’t refute those thoughts. It is very natural to think like that.
Is Travel Insurance necessary?
Travel insurance should be seen as a Safety factor. I guess we won’t compromise on safety. Always remember, having an Insurance is no harm. But, without it, causes terrible harm!
Check out these true stories - where a Travel Insurance was of great help
Terminologies in Travel Insurance – The Confusing words
In order to explain about ‘How to choose an excellent Travel Insurance‘, we need to first understand the terminologies and this article will focus on it:
| Terminologies | Description |
|---|---|
| Insurer | The company that issues the Travel Insurance plan/policy |
| Premium | The amount that needs to be paid by you to purchase the Travel Insurance plan/policy |
| Network Hospitals | Insurer has tie-ups with certain Hospitals. Visit Insurer’s website, to know the list of hospitals |
| Benefits | Like Emergency Medical Expenses (EME), Emergency Dental Treatment, Flight Delay, Loss of Checked Baggage, Accidental Death etc. |
| Sum Insured | Maximum amount that your insurer will pay – mentioned against each benefit. Any amount beyond Sum Insured, will have to be paid by you. |
| Claims | If you visit a non-Network Hospital, you will have to bear all expenses (OR) Your eligibility with appropriate proof (in case of flight delay, loss of checked baggage etc) |
| Cashless | If you visit a Network Hospital, then you will have to just pay the deductible (mentioned against a benefit) and the remaining payment will be paid by the Insurer (upto Sum Insured mentioned against the benefit) |
| Deductibles | The mandatory/minimum amount spent by you (mentioned against a benefit) – will not be reimbursed to you by the Insurer. Excellent Travel Insurance has lower deductibles |
| Reimbursement / Refund Amount | If you had asked the Insurer to refund claims, then the refund amount is equal to Claims minus Deductibles. This amount will be refunded to you only if the Claims are eligible |
Read to know more about : What each benefit means? What are included and excluded from a typical Travel Insurance Plan?
Now, on understanding these terminologies – if you face any problems during travel – you will know your eligibility and also know how to handle the scenario!
Next article will be on ‘What are the key parameters to look in a Travel Insurance plan/policy’?
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