Why Should You Buy Travel Insurance?

I always traveled without travel insurance, and I am not proud of it.

Being a middle-class Indian, my vested interests had always been in saving a few extra bucks here and there rather than contemplating the potential dangers of traveling without insurance. My first ever international trip was to Singapore. The year was 2014. I had just started working back then and was quite low on funds. My best friend, who had been working in Singapore then, invited me over. My wanderlust took over, and frugality took a back seat.

I saved up each penny for the trip. While I researched extensively on currency conversion rates and cheap flight deals to plan a budget trip, I didn't spare a single thought to international travel insurance. Well, I had clearly made a huge mistake. I ran into a severe medical emergency in Singapore, and then I had to break the bank to make ends meet. This was when I realized the importance of travel insurance and regretted not having taken one.

What is Travel Insurance?

Travel insurances are meant to protect people during trips. They typically cover medical expenses, trip cancellation costs, lost luggage, accidents and other losses incurred while traveling. They also provide coverage for legal liabilities and corresponding expenses. Usually, travel insurance can be purchased while booking a trip to cover the exact duration of that trip. Most travel insurance plans offer coverage for the following:

• Unexpected flight cancellation

• Loss of luggage

• A sudden need for prescribed medication

• Theft of wallet and passport

• Cancellation of the trip due to sickness

• Medical emergency in a foreign country

• Sudden evacuation due to natural calamities

• Personal Accident cover

• Trip cancellation due to terrorist activities at the destination

Travel insurances can be personalized to fit your specific purpose, but its main purpose is to give you the essential peace of mind required while you are out of your comfort zone and exploring the world. Let's look into why travel insurance is very often woth the cost.

Benefits of Travel Insurance

Medical Emergencies

During my trip to Singapore, I was overwhelmed by the spread of cuisines available there. Being a big foodie, I indulged in uncountable delicacies. I particularly overindulged in seafood. I woke up next morning in a terrible state - with severe diarrhea, high fever and feeling extremely nauseous. Self-medication didn't work, and my condition rapidly deteriorated. I had to be hospitalized and treated for food poisoning.

Apparently, the crab meat was the culprit. This little stint with crab meat cost me more than SG$1000, which converted to a whopping Rs.40,000 in Indian currency. My Indian health insurance didn't cover it. However, travel insurance could have spared me the horror of such a hefty expense. Sadly, I hadn't purchased one.

Most of us overlook this crucial factor. We often assume that we are covered for medical emergencies if we already have existing health insurance. However, most Indian health insurance policies provide coverage only within India. The moment you step out of the country, you are at risk. I learned this the hard way.

Most travel insurances provide Medical Expense Coverage that covers you for accidents and emergency medical care when you travel abroad. It even pays for emergency evacuation and repatriation in case of critical medical crisis, which is otherwise devastatingly expensive and unaffordable for many.

Lost Bags, Delayed Bags, Delayed Flights

My parents had visited Bali in 2015. Having landed at Bali Airport, they eagerly waited by the conveyor belt for their bags. However, their suitcases never arrived! Upon further inquiry, they were informed that their bags would arrive on the next day. Moreover, when they went back to the airport the next day to claim their delayed baggage, Mom got her suitcase, but Dad's couldn't be found.

They were at their dream destination in a vacation mood - the sea was inviting them for a refreshing swim, but the poor old guy did not have his swimming trunks! Moreover, their return flight was delayed by 9 hours. Doesn't it sound like a cursed trip?

Unlike my Singapore trip, this story ends on a brighter note. My earlier horrific experience at Singapore had thankfully taught my parents a lesson, and they were wise enough to purchase travel insurance this time. The travel insurance had Baggage Delay Coverage which covered for the purchase of essential items, such as a toiletry kit and a change of clothes until the delayed bags arrived almost 30 hours later. The insurance also provided Baggage Coverage, which reimbursed Dad for his lost belongings. The Travel Delay Coverage paid for the extra night in a hotel.

24x7 Assistance Worldwide

I was on an adventure-packed backpackers' trip to Europe last year. The trip was exhilarating until one day, in Holland, when I was mugged. My passport and wallet were gone, along with all the Euro I had. I was shaken up by the horrific experience that followed.

Since I don't speak Dutch, I could barely communicate. The Dutch folks barely spoke English, and I was at my wit's end trying to convey my problem to the local police. My trip almost got derailed! Thankfully, the 24x7 customer support helpline of the travel insurance company came to my rescue.

Every travel insurance company provides 24x7 support for such needs. They not only helped me overcome the language barrier with telephone interpretation assistance but also organized to transport me back to my hotel. They assisted me with my search for the lost belongings, provided stolen luggage replacement assistance and expedited the process of replacing my passport.

This service is extremely valuable in times of crisis. The 24x7 Travel Assistance Services can help with all kinds of emergencies during travel. This service comes especially handy during medical emergencies - they can locate nearby hospitals, organize medical transportation, and also arrange for treatment.

Canceled Trips

A meticulously planned trip involves a lot of investment and expectations. What if something goes awry, and the trip is canceled? Apart from a shattered heart, a lot of money will be at stake - the flight tickets, the hotel bookings, and all other prepaid reservations. However, if you shell out a tad bit more for travel insurance, you can easily avoid these risks.

Most of these insurance policies offer Trip Cancellation Coverage that reimburses for all prepaid non-refundable expenses if the trip is canceled before departing. Some policies also offer Trip Interruption Coverage that provides similar protection in case the trip is interrupted midway. These coverages are typically applicable to reasons like:

• You or a traveling companion is sick or injured

• Personal emergencies like a death in your family or loss of your job

• Natural disaster or terrorist incident in the destination

• The bankruptcy of your travel agency

• Unexpected flight cancellation

These might not be frequent occurrences, but why should you take a chance?

Factors for Consideration

Now that I have established the significance of travel insurance, let me tell you about a few important factors that come into play while purchasing one.

• Destination: Where are you going? Is it a domestic or an international trip? Is it a single trip or will you be traveling frequently throughout the year? All of these factors affect the type of insurance you need. Make sure that the policy you buy covers your destination. Those traveling frequently can consider multi-trip packages or annual travel insurance, which are more cost-effective.

• Age: The age of the person insured is crucial. Opt for a package that suits your age. If you are traveling with your kids, look for family travel insurance packages that extend coverage to the kids too.

• Coverage: Different insurance companies provide different travel insurance policies with various types of inclusions and exclusions. While most of these policies cover for standard items, like medical and other emergencies, trip cancellation, baggage, liability, etc., you must consider getting coverage for other unique areas.
  You might want coverage for sports and activities that you plan to participate in or wish for your valuables (camera, laptop, iPod) to be insured. Make a list of the kinds of cover you require before you go insurance-shopping.

• Sum Insured: A little attention to detail can help you understand how much cover you need. Consider your current financial situation, look into your trip budget and attribute a dollar value to all expenses involved in the trip to approximately estimate the value of coverage you might need. Choose the policy accordingly.

• Medical History: Travel insurances can greatly benefit you during medical emergencies. However, some policies may not cover pre-existing medical conditions and certain illnesses, sometimes even excluding coverage for senior citizens. Explore these avenues before investing in a particular policy.

• Terms and Conditions: Read the policy terms and conditions carefully to understand the inclusions and exclusions. Get acquainted with the circumstances, activities and events that might exclude you from coverage. In case you don't understand the clauses, seek clarification before purchasing the policy.

• Company History: Compare travel insurance packages and also consider the reputation of the insurance company as well as its claim settlement ratio before zeroing in on one.

To Sum Up

Danger lurks around every corner, and it surely won't come with a loud and clear warning. It is better to take precautions than crying over spilled milk. You can easily buy travel insurance online through the same sites where you book your tour packages and tickets.

So, the next time you book a trip or a flight ticket, resist the temptation to deselect that tiny little box for travel insurance and stay away from travel troubles. You never know...spending a few extra hundred bucks might help you save thousands more.