Why Travel Insurance Is a Must for Your Next Overseas Trip: Types, Benefits, and Key Considerations

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Buying travel insurance, while not mandatory everywhere, is a good investment. A good travel insurance covers medical emergencies, including hospitalisation and post-hospitalisation costs, which can save you from hefty bills. It offers protection against the loss of your passport and baggage, helping you out during this stressful time.

Wondering whether to buy travel insurance or not for your overseas trip this year? While some countries make it a mandatory step while applying for your visa, others don’t. However, it is wise to make the investment to buy travel insurance, whether or not it is mandatory, as it will save you unnecessary costs and headache while you are on your trip in case anything untoward happens.

Here are the different kinds of travel insurance offered and what they cover.

Medical Emergency or Accident-Related Insurance: In case you fall ill while travelling, or have an accident, ensuring you have medical insurance while overseas can cover the cost of hospitalisation as well as your medical bills if you fall, get sick or injured, etc. Some travel insurance policies even cover the post-hospitalisation costs up to a certain period of time. Some plans also offer a daily hospital cash allowance if you are hospitalized during your trip. This can help you take care of those extra expenses which may be related to, but do not fall under the category of, medical expenses.

Loss of Passport or Baggage: This can be a very useful insurance to buy. In case your airline messes up your baggage and it reaches a different destination, having this insurance will ensure that you have enough money to set you up for a few days while you wait for your baggage to arrive. If your checked-in baggage is misplaced by the airline, this policy would also cover the financial loss whether your baggage is lost or delayed. So you can continue with your vacation as planned without worrying about these expenses.

Losing your passport can not only be a harrowing experience when you’re overseas, it can also be a strain on your finances to arrange for a new one. If you are insured, most travel insurance policies cover the cost of arranging a new passport, taking away the hassle and stress of doing so yourself.

Some policies also cover the cost of arranging for a duplicate international driver’s licence in case you lose it during your trip.

Trip Cancellation or Delays: In a scenario where you or someone else travelling with you suddenly falls sick before a trip and are unable to travel, this kind of insurance will reimburse you for all prepaid and non-refundable travel expenses. It might make your ticket slightly expensive, but more and more people have started considering this kind of insurance since COVID, and it can be a useful one to buy beforehand. It also covers you in case there is a death in the family, or there is a forecast of sudden weather calamity or a crisis in your destination.

On the other hand, if you have already embarked on the trip and have to cut short the trip short due to an unavoidable emergency, a trip curtailment cover will protect you against such a scenario as well.

Travel insurance policies are also extremely useful in case you have a connecting flight and you miss it due to unavoidable reasons. You will be covered for the cost of the new flight you would have to book in place of the one that you missed.

What Else to Keep in Mind

Before selecting a policy, ensure that you have read all the benefits. Do not assume all potential losses that may occur due to medical emergencies, loss of baggage or documents are covered.

Choose a reputable provider and do adequate research on how they handle policy claims through customer reviews. The effectiveness of an insurance policy is demonstrated during the claims process.

Declare any pre-existing medical conditions when purchasing the policy to avoid your claim getting invalidated.

Unexpected events like trip cancellations, medical emergencies, or lost baggage can occur at any time, leading to financial and emotional stress. With adequate coverage, you can be confident that there is financial help to handle these situations, and maintain your peace of mind.