What are the Differences Between Trip Insurance and Travel Medical Insurance?
If you've been wondering "Which should I buy
, Travel Medical Insurance or Trip Cancellation Insurance?". Maybe you should learn what the difference is, let me help you.The differences between the Travel Medical and Trip Insurance are pretty major. What I will do in this article is explain what Trip Insurance is and then give some details of what Travel Medical Insurance is also.
Trip Cancellation Insurance is normally purchased to protect you from the loss of the pre-paid portion of your trip or vacation. The cost of the insurance is based on the age of the insured and the cost of the pre-paid cost of the trip for that person. The calculation normally uses what is called a factor, based on age, times the cost of trip for that person. Usually there is a maximum number of days you can cover for a trip, 30 days is the norm.
Note: I am using IMG's Patriot TRIP for this example. You use a factor to calculate the premium.
The Factors are: Ages 0-49 = .04, 50-59=.0549, 60-69=.0698 and 70+=.1015.
For example a person between the ages of 0 to 49 will use a factor of .04. If the cost of the trip is $1,000 then the Trip Cancellation Insurance cost would be .04 X 1000 or $40 for that person. So if 2 people are traveling and they fall in the same age group and their trip cost is the same, the total cost for Trip Cancellation Insurance would be $80. Not too bad. Now let's take a look at the benefits. Note: you can insure your trip up to $20,000 cost.
Trip Cancellation benefit would be used if any of the following happens to the insured: emergency illness, injury or death or that of a family member, a business partner, a travel companion, or a travel companion's family member. Financial default of a travel supplier, a terrorist incident, organized labor strike, natural disaster or bad weather resulting in the cessation of the travel supplier's services, hijacking, medical quarantine, jury duty. Insureds home or that of a travel companion made uninhabitable by fire, windstorm, vandalism, or flood. Insureds auto accident or that of travel companion on the way to the scheduled departure point. Cancelled leave if insured or traveling companion is on active duty for the military, police or fire department. Employer termination or layoff.
Travel Delay benefit will pay up to $500 per person for the following reasons: travel supplier delay, lost or stolen passport, travel documents, or money, medical quarantine, natural disaster, insureds injury or illness or that of your travel companion, missed cruise departures because of flight delay due to bad weather.
The Baggage and Personal Possessions benefit will pay up to $1,000 per person for damage to, loss of, or theft of your checked or stored baggage by a common carrier or while stored with your hotel.
Baggage Delay benefit will pay up to $100 per person.
Emergency Medical/Dental Expenses benefit will pay up to $10,000 per person.
Emergency Medical Evacuation/Repatriation benefit pays up to $20,000 per person for reasonable expenses for evacuation to the nearest adequate medical facility, provided you are traveling more than 120 miles from your primary place of residence and reasonable expenses when you are confined in a medical facility more than 120 miles from your primary residence, and your treating physician and the company determines it is medically necessary to transfer you to a medical facility nearer to your primary residence.
Emergency Reunion or Return of Mortal Remains pays up to $3,000 for the return of dependent child or grandchildren, transportation and lodging for a family member to be at your bedside, return of a rental vehicle and return of mortal remains.
Common Carrier Accidental Death and Dismemberment benefit pays up to $100,000 per person.
Those are the benefits of a Trip Cancellation Insurance plan. Not bad but certainly not all inclusive. It does serve it's purpose though when you are taking an extremely expensive trip like a Cruise, all inclusive vacation or any other trip or vacation where you have pre-paid for a substantial portion up front.
Now let's take a look at a Travel Medical Insurance or Travel Insurance policy. This type of insurance is the most common type of Travel Insurance purchased. Why, well because it will cover almost everything for your trip except for the trip cancellation. Take a look at the benefits and you'll see what I mean.
Benefits of a good Travel Medical Insurance policy, again I am using an IMG insurance plan, Patriot International Medical Travel Insurance. The premiums for this plan are also based on age but they are also based on the deductible you select and on whether you are traveling outside the U.S. or to the U.S. Premiums are higher if you are traveling to the U.S. and lower and if you are travelling outside the U.S. This is because health care in the U.S. is usually higher than in other countries.
I can tell you what the premiums would be for you and your spouse traveling from the U.S. to, let's say, Jamaica for two weeks. We will assume you are both between 35 and 40 years old and you get the $500,000 policy maximum with the $0 deductible (this is what I recommend and what I usually get). The premium would be $90 total. Below is a list of the benefits in this Travel Medical Insurance plan. You can see the full explanation of the benefits by going to one of the links at the bottom of this article.
Lost Luggage pays up to $50 per item of personal property up to maximum of $250 per period of coverage
Hospital Room and Board pays up to Policy Maximum
Political Evacuation pays up to $50,000
Emergency Reunion pays up to $50,000
Common Carrier AD&D $50,000 payable to beneficiary, maximum of $250,000 per family
Intensive Care pays up to Policy Maximum
Medical Expenses pays up to Policy Maximum
Outpatient Medical pays up to Policy Maximum
Local Ambulance pays up to Policy Maximum
Prescription Drugs pays up to Policy Maximum
Emergency Room Accidents pays up to Policy Maximum
Emergency Medical Evacuation pays up to $500,000
Return of Mortal Remains pays up to $50,000
Return of Minor Children pays up to $50,000
Incidental Home Country Coverage up to cumulative 2 weeks
End of Trip Home Country Coverage you can purchase up to 2 months
Sports & Activities pays up to Policy Maximum for Basic Sports
Optional Sports Rider will give you coverage for a range of extreme activities
AD&D Optional Rider available up to $400,000
Terrorism pays up to $50,000 lifetime maximum
Identity Theft pays up to $500 per period of coverage
Natural Disaster pays $100 per day for 5 days
Trip Interruption pays up to $5,000
If you are only concerned with insurance to protect your investment in pre-paid travel expenses such as airline tickets, hotel costs, cruise ticket, etc then Trip Cancellation Insurance is probably what you need. Don't forget to get this insurance very soon after paying for your trip because once an event happens that might cause you to need to cancel your trip, it is already too late. Also I would strongly suggest that you do not get the Trip Cancellation Insurance from the same agency you get your trip from.
If, however, your concern is that you and your family be fully protected with a comprehensive plan then Travel Medical Insurance is what you need. You can also get the cancellation insurance as an add-on to your insurance plan. This type of insurance will give you all the insurance you need to make you feel comfortable on your vacation or trip. You can travel worry free.
Whichever Travel Insurance you get, make sure you read the Benefits carefully, better yet download a Brochure so you will have everything you need to make your decision. You will find some links below where you can do both plus purchase on-line if you're ready.
You can find out how to get your travel insurance on-line at http://www.globaltravelcoverage.com or contact the agent there using their contact form.
Thank you for your time and I hope you read more of my articles in the future.
What are the Differences Between Trip Insurance and Travel Medical Insurance?
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