travel insurance

Everything You Need To Know on Travel Insurance


Travel Insurance is dedicated to protect you in different ways when you go on a trip. This type of insurance consists of two main plans. The trip protection plan and travel medical plans.

To learn more about this type of insurance, stick with us, as we dive deeper into travel insurance.


Why do we need travel insurance? Do we really need travel insurance? Let’s answer those questions in two parts. A smart traveler buys this type of insurance to protect their trip before and during their trip. A protection against losing trip costs that are prepaid and non-refundable. Especially if something unexpected happens before leaving.

Is there a trip cancellation insurance cover? Well, coverage varies by plans. With trip cancellation, it will cover you if you cancel a trip for a covered reason. Example a severe weather or your girlfriend or traveling companion got sick.

How about coverage during the trip? Once you are already on your trip, unexpected events can still happen. If there are medical emergencies, “travel medical and emergency evacuation benefits can cover the substantial medical costs incurred and get you back home safely. On the other hand, baggage loss or baggage delay benefits can cover you in case your personal belongings are lost, delayed or stolen.

“Trip interruption coverage” can cover the remaining trip cost. For example you need to interrupt your trip and return back for a covered reason. Take note before buying travel insurance. You need to compare them in order for you to find the right plan at the right price for your trip.


Traveling with someone you loved on your dream destination is one of the memorable moments life can offer. But those memorable moments could potentially fall apart in just a blink of an eye. The dream trip could cut short if there’s an accident or a natural disaster. You could be a target by pickpockets. Adventurous activities could potentially become a nightmare. But with travel insurance, it can help you ease those burdens by picking up the pieces.

Take note it can cover the loss of your personal items, loss of money and the most important part it can cover your medical cost. Travel insurance will always be there for you no matter where you are.


  1. Take note travel insurance is not for everyone.  

You need to determine first whether it makes sense to you or not. A decision making to decide how willing you are to take financial risks related to trips. It exists to minimize the financial cost when you travel. So you have to look at the trip that you’re taking. 

How much money did it cost? If you can’t go due to unexpected things happening, how much money did you lose? Is it a few hundred bucks in fare or is it a $20,000 once in a lifetime trip? These are the things you have to look at first. For you to decide whether you want to buy travel insurance or not. You can also ask yourself, how much is peace of mind worth nowadays? Well, if you’re someone who overthinks and worries a lot, peace of mind might actually be worth quite a bit.

  1. Different Types of Travel Insurance

“Trip Cancellation” the most common coverage for travel insurance. If your policy has trip cancellation, then your insurance will refund the price of your trip. Take note, cancellation needs a valid reason or it should be one of the covered reasons. For example, Covid-19 is not one of the covered reasons for most travel insurance.

Next, “Trip Interruption”. It is often time paired with trip cancellation. This one works when you are in the middle of the trip and you need to stop it and go back home. If this happens the insurance will give you a refund that is the same price of your vacation that you didn’t enjoy.

This different types of insurance isn’t a one-size-fits-all-thing. Every plan covers different conditions and different areas.

“Medical Coverage”, it’s one of the important coverage that you need to take note of. As part of travel insurance it will reimburse your medical expenses that happened at your destination. You might also need to look closely at emergency evacuation or transport coverage. For example if you’re in a third world, the transport coverage will pay for your transportation to a better country with better health facilities.

“Trip delay”, this coverage will reimburse your expenses due to delays in travel. For example, if you get stuck at LAX for 6 to 18 hours, you might have to stay in a hotel. That’s what trip delay coverage is for.

“Baggage Coverage” will reimburse the expenses that’s due to damage, delayed or stolen baggage.

“Rental Car Coverage” covers your rental car if you’re on a trip. “Change Coverage” covers you if you make some changes to your airline reservations or in cruise ships reservations.

Lastly, “Death or dismemberment” coverage, this works when an insured dies, or is dismembered, their next kin will receive the money associated with the policy. 

Some less common types of coverages that you might be interested in

“Comprehensive policy” if you see this in your policy, this means that it covers almost all of the things that we talked about above. “Political Evacuation Coverage” If a revolt happens in the country that you’re in, this coverage will provide for your transport out of that country.

The “reimbursement only” in your policy works by paying first then reimbursement follows. In the case of medical transportation, the company might pay for it directly. Now the question, do you have the money in your bank to pay for those unexpected expenses? Then later on fight with the insurance company just to get your money back.

Lastly, “Annual Policies”. It is good for people who travel a lot. It can cover you on all of your trips in a year.

The next tip you need before buying

  1. The Price

Insurance typically costs 5% up to 12% of the total amount insured for a trip. One of the biggest factors is age. Let’s say if you’re 50 years old and above, then it’s higher considerably from there.

Take note that ages 17 and below might be free or discounted. Provided that there are adults in the policy. The prices of travel insurance can range higher. So comparing insurance companies is a must. Also, don’t simply buy the insurance that your airline or cruise company is offering you when you book with them.

  1. When to Buy Travel Insurance

Usually people think when buying travel insurance it needs to be at the same time you book a flight. But typically it depends. Take note, that you don’t need to buy many types of travel insurance until before you go. 

Let’s say, you are planning to buy trip cancellation coverage. It can give you more value, when you buy it earlier. But if you buy it later on, you might not be getting its benefits. It’s because something might have already happened, you have to cancel it if you didn’t buy it at the same time.

Also, there are some policies that have requirements. Wherein you need to purchase it within 7 up to 21 days of booking a trip. So you need to research some policies first. In addition, try to book it around the same time.

Important tip that you should take note

  1. The Medical Coverage

In my opinion, this is one of the most important coverages in travel insurance. First of all, your existing health insurance plan (if you have) might cover you when you go on a vacation. 

You should read the details, call your agent and figure it out before you buy travel insurance. This is to help you refrain from spending your money twice on something you’re already covered for. 

But be careful, because even if the insurance company says that you are covered, they may actually bill the coverage on out-of-network rates. This can lead to some really expensive medical bills if something happens to you on your vacation. 

Take note, this type of coverage becomes more important, the more adventurous you get. For example, you are hiking the Everest and something happens, first you’re going to need a helicopter. Second, you’ll need an airplane to actually take you to a civilized place. That can get expensive in a blink of an eye.

  1. The Credit Card

People usually ask if they still need travel insurance, even though they have a credit card that comes with premium benefits. Well, to answer this, it depends on the card that you possess. Here are some things you need to check on your credit card.

  • It provides loss, damage baggage coverage that is up to $3,000 per passenger.
  • Interruption coverage or trip cancellation that provides $10,000 per person. $20,000 in total for the said trip. Take note it only covers prepaid and non-refundable expenses.
  • A trip delay reimbursement that covers up to $500 per ticket.
  • Rental coverage that covers up to $75,000
  • Medical Evacuation that can cover up to $2,500.

What to look for when buying travel insurance for Covid cover

Covid-19 protection can vary depending on the travel insurer. So, you need to read and understand the policy information. You also need to make sure the cover is right for your trip before purchasing it. Here are 3 things you need to check before traveling:

  1. Falling Ill Abroad

Usually policies will cover your medical expenses and transportation. Especially if you catch coronavirus while on a holiday. You need to check whether your insurer will cover an enforced stay, in the event you’re told you can’t travel back home due to Covid symptoms. Or you need to do a quarantine abroad.

  1. A canceled trip

If your trip is canceled due to the pandemic. You need to get in touch with the travel agent that cancels it. They might offer you another chance to rebook your trip when things go back to normal, or give a refund.

  1. You need to cancel the trip

Try to look for a policy that allows trip cancellation, if you tested positive before the said trip. You can also check if there’s coverage if you need to self-isolate.

Leave a Comment

Your email address will not be published. Required fields are marked *