Vacation Insurance... Saves Your Money, Time And Frustrations!

Don't forget your vacation insurance before youtrip does not exceed a certain number of days,
take off for any travel.usually 90 days.
I am very serious when it comes to insurance, INo declaration is required.
do not want to take any chances, I grew up in aFor frequent flyers, this type of cover would be
family with my mother as a sole bread winner,most ideal in terms of cost and convenience.
my Dad passed away when I was 10 years oldFamily Vacation Insurance
without any insurance. Life was very very difficultFamily packages are also designed to cater for
then.immediate families traveling together. Definition of
So the same goes with vacation insurance too!immediate families would mean you, your spouse
It can cost you an extra few thousands of dollarsand your children.
if the cruise or tour operator goes bankrupt, or ifFamily vacation insurance are usually priced lower
you need to shorten your vacation due topremium than if individual insurance policies were
sickness or injury.to be taken up for the whole family.
Quick TipSpecial Features ALERT!
The biggest myth would be that your normalGo for vacation insurance policies come with
health insurance covers you when you are away,higher deductible and this translates into lower
or that since many travelers visit an area orpremium.
region, access to medical care is easy orThe worst case scenario is you may end up
affordable.having to bear the first $40 or $50 of every
Here's a quick guide to understanding what a goodclaim that you make.
vacation insurance should cover for any travel.Deductible: (Also known as Excess in UK, NZ, AU)
1. Travel CurtailmentThis is the amount that the insured must pay
If you or an immediate family member becomesbefore the vacation insurance starts paying for
seriously ill or is injured during the vacation mostyour claim.
vacation insurance companies would reimburseThis may be an annual amount, an amount for
you for the unused portion of the vacation.the duration of the policy, or an amount for each
2. Travel Cancellationincident. Choose the latter.
You would be reimbursed if the cruise line or tourFor those of you who intend to engage in water
operator goes out of business. It would alsoor winter sports during your vacation, it would be
reimburse you if you have to cancel the vacationwise to take up your insurers who offer free
due to sickness, a death in the family or othercoverage for such activities.
calamity listed in the insurance policy.Some traveler insurance companies may charge
Travel cancellation is very different from aan additional premium for this extension, so it is
Cancellation Waiver that many cruise and tourbetter to check this point before you effect your
operators offer. Waivers are relativelycover.
inexpensive. They provide coverage if you haveUnfortunately, the definition of water sports in the
to cancel the trip, but they have manytypical travel policy does not include scuba diving.
restrictions.Not surprisingly, bungee jumping is excluded from
They must be purchased when you book the tripmost policies. Watch out for age limits imposed by
and will usually not cover you immediately beforesome traveler insurance companies, meaning that
departure. Most importantly, waiver is notpersons exceeding a certain age are excluded
insurance.from their coverage. But if you belong to this
2. Personal liabilityelderly group, fret not.
Personal Liability is important in case of legalThere are traveler insurance companies that do
liability, arising out of one's negligence in causing anot impose any age limit and offer the same
third party injury (or death) and/or third partycoverage at no additional premium loading.
property damage.A unique coverage that is being offered in the
Some traveler insurance companies even insuretraveler insurance market is the "Car Rental
against the loss or theft of golfing equipment andExcess". This feature takes care of the excess
laptops.amount that the insured normally has to bear
3. Luggage/Baggage/Flight Delay(under the motor policy taken up at car rental
This feature comes along with a "Time" excess,companies) in the event of damage to the rented
meaning that the traveler insurance companiesvehicle while driving overseas.
only compensate when the delay exceeds aPrice of Vacation Insurance also known as
certain time frame. The limit for loss of luggagePremium - Premium Computation
baggage/flight varies, usually with a cap forFor "per-trip" policies, the premium payable hinges
individual items.considerably on the number of days of travel, the
4. Emergency & Medical Assistance andcountry of destination and choice of plan.
Information ServiceFor example, if you are from Europe, a vacation
Look for those 24-hour services that offerin USA warrants a much higher premium than a
information on visa requirements, foreigntrip within Europe for the same number of days.
exchange, weather forecasts and medical adviceSome traveler insurance companies provide the
et cetera.option of higher limits of coverage at of course, a
Emergency evacuation is very helpful indeed forhigher premium.
inexperienced travelers or travelers with medicalIf price is of concern, it is advisable to keep on
conditions or for those who are traveling to morehand the premium schedule from a few traveler
remote and less traveled places.insurance companies for comparison before you
These service centers may also offer emergencyactivate your insurance before each trip.
assistance in the form of embassy, legal,Claim Procedure
interpreter and medical referrals.I consider this the most important aspect of
Most vacation insurance policies wouldbuying a vacation insurance.
compensate a couple of hundred dollars for eachAll traveler insurance companies will require you to
day of hospitalization up to the maximum limitlodge your claims within a certain time frame. You
indicated in their respective packages.would be required to complete and submit a claim
This is solely to compensate the traveler for theform, which can be obtained from the traveler
number of days spent in a hospital overseas andinsurance company.
should not be mistaken as hospital or medicalIn almost all instances, your claims must be
reimbursement, which takes care of the hospitalaccompanied by relevant documents, such as
and ward charges.medical receipts for medical reimbursement or
4. Accidental Death insurancehospital cash; a police report for loss of money or
Personal accident coverage, which is topersonal documents; an official letter from the
compensate the insured for permanent orairline in cases of flight or lugguage delay and loss
temporary disablement or death as a result of anof lugguage if within custody of the airline.
accident.In all cases, call up and inform your traveler
2 Main Types of Vacation Insuranceinsurance company immediately for necessary
Annual Policyadvice.
Most traveler insurance companies offer vacationThere you are... now with a basic knowledge of
insurance on annual basis as well as per trip basis.vacation insurance, you are equipped to choose
Annual policies cover unlimited trips made by thethe best suited to your travel needs and you are
insured during the entire year provided that eachall set to fly!