subject: Why You Need Visitors Insurance (travel Insurance) [print this page] What is travel insurance?
Travel insurance serves exactly the same purpose as any other insurance that is protection from risk. Travel Insurance protects you and your belongings while you are travelling.
Why do I need travel insurance?
Risks are of all kinds and of different magnitude. Risk tolerance also differs from person to person. There are risks of all types such as medical need, risk of losing your belongings etc. Travel insurance helps you in securing with the uncertainties which one has to face during travel. These uncertainties can cause all kind of losses.
1.If you happen to travel to a different country you should always protect yourself from losses which you may have to suffer due to medical reason and climatic conditions. People who are aged or are more prone to medical need then they are people who are categorized as high risk people. People who are overweight, or have high blood pressure are more likely to experience difficult travel and hence more discomfort this can result in medical need. In such conditions medical insurance is a requirement.
2.If there are chances that there is a cancelation of flight or a change in the travel due to unforeseen reasons then a travel insurance becomes a must.
3.If there are chances that you are not able to travel due to inconvenience caused by the travel agency, airline or the hotel due to bankruptcy or any other reason ,then in such cases travel insurance becomes very important to cover financial losses.
4.If you are travelling overseas where you have a connecting flight or have to board a ship then there may be chances of luggage being mis placed. Travel insurance will help to cover the cost involved in such a case.
5.Leisure activities and adventure sports which are termed as risky activities such as surfing, skiing, scuba diving.
Factors on which insurance cost depends
1.Travel destination-Normally more exotic locations and adventure travel insurance works out to be more expensive
2.Length of the trip-Longer the trip ,higher will be the travel insurance cost
3.Number of people-A group travel insurance is cheaper than an individual insurance
4.Frequency of travel-If you happen to travel a lot its better to take multi trip insurance because it works out to be more cost effective.
There are two major disadvantages to travel insurance:
1.Not all travel involves risk and by god grace nothing unfortunate happens, hence travel insurance goes waste.
2.Many companies make you pay an amount on any damaged goods or medical expenses before paying out for expenses. Therefore, your insurance may only benefit you if you have a substantial claim.
Never the less Travel insurance serves as a cushion while you are travelling on long distance and for a longer duration. Since problems come uninvited and come at a huge cost specially when you are away from your home. Therefore it is wise to invest in a travel insurance.
by: JohnMatrixia
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