Insurance in layman’s language can be described as the equitable transfer of the risk of a loss, from one entity to another in exchange for money.This transaction occurs as a cushion against unforeseen and uncertain loss.The insurer in this case is the one selling insurance while the insured is the person or entity buying the insurance policy.There are different insurance policies one can take out which includes travel insurance.
Travel insurance has been designed and tailored for those traveling domestically or overseas. Generally, travel insurance policies cover five main categories which are Trip cancellation,Travel medical, Major medical, Emergency medical evacuation and Accidental death or flight accident.
Trip cancellation -Trip cancellation or sometimes known as trip interruption insurance or trip delay insurance covers you in the event that you or your traveling companions need to cancel, interrupt or delay your trip. Some of reasons recognised by insurers to cause cancellation include sudden business conflicts, change of mind, delay in processing your visa or passport, illness or injury and weather related issues.Travel insurance also covers you under events such as an act of terrorism, service provider such as cruise line, tour company or airline going out of business, an accident on the way to the airport, fire or flood in your house and jury duty.
Travel medical and major medical insurance -These insurance policies provide medical protection if the policyholder becomes ill or is injured while traveling.These insurance policies can help you to cover medical expenses and locate doctors, hospitals, healthcare facilities and foreign language services if you become ill or injured while traveling overseas.The only difference between travel medical and major medical is the duration of coverage.Travel medical insurance provides only short term medical coverage with the duration being between five days to one year. Major medical insurance is for travelers who are planning to take longer trips of six months to one year or longer.
Emergency medical evacuation – This kind of insurance provides coverage for medically necessary evacuation and transportation to medical facilities.This insurance policy is necessary to have especially if you are visiting rural areas without easy access to needed facilities.
Accidental death or flight accident – These insurance policies pay benefits to a travelers surviving beneficiaries just like life insurance. Benefits are paid out in the event of an accident resulting in death or serious injury to the traveler.
The above listed insurance options are available from many service providers.