How to Choose the Right Travel Insurance Policy?

One of the best ways to live life to the fullest is travelling and exploring the world. It can bring you closer to nature, introduce you to different people and cultures, enhance your knowledge about changing global scenarios, and what not!

However, if you have decided to travel, it is important to ensure that you are financially secured during every stage of your journey, including when you start, travel, and get back home. One of the best ways to ensure that you can make the most of your trip is by securing it with a valid travel insurance policy from a reputed insurer like Tata AIG.

There are different types of policies and additional covers that increase the range of choices for you. So how can you select the right travel insurance policy for your trip? Here is some important information to help you in this regard.

Before getting started, let us understand the different travel insurance policies available for you to choose from.

Types of Travel Insurance Policies

Insurers classify travel insurance policies based on the purposes of travel, types of risks that need to be covered by them, and the extent of expenses that the policyholders may incur to ensure maximum protection during the trip. The different types of travel insurance policies are as follows:

1.Domestic travel insurance - A domestic travel insurance plan can be a way to financially safeguard yourself when travelling to any destination within India. It can reimburse you for lost tickets, delayed trips, the expenses arising out of unexpected accidents, etc.

2.International Travel Insurance - It is a travel insurance policy for people going abroad on a vacation or a business trip. It covers your baggage losses, medical emergencies, and other uncertain travel complications.

3.Student Travel Insurance - It is an exclusive travel insurance plan to safeguard students travelling abroad for their higher education in a foreign institution. Apart from a general insurance cover, it can provide financial assistance in the form of reimbursing unused tuition fees in case of discontinuation of studies, arranging a compassionate visit of your family member to help you when you are ill, etc.

4.Senior Citizen Travel Insurance - It is a travel insurance policy exclusively designed for senior citizens. Apart from a general travel insurance cover, this policy offers additional cover to treat medical emergencies, medical evacuation, repatriation of remains in case of accidental death, etc.

5.Family Travel Insurance - It is a travel insurance policy that extends the travel insurance coverage to your family members who are part of the travelling party for a particular trip. The policy coverage is similar to that of an individual travel insurance policy. A family travel insurance plan offered by insurers like Tata AIG covers up to nine family members below 71 years of age under a single plan.

How To Choose The Right Travel Insurance Policy?

Here are a few ways to choose the right option based on your travel objectives.

1.Decide your destination - Choose the travel insurance plan based on your destination - domestic or international. Furthermore, you can decide on the sum insured based on the place. For example, if you are travelling abroad to a developed country, the cost of medical expenses can certainly be on the higher side. Therefore, make estimations based on such costs and decide the required financial assistance in your travel insurance policy.

2.Purpose of the trip - You can also decide on the travel insurance policy based on the purpose of the trip, such as business, studies, etc. For instance, the risks of international travel are low when travelling for a business meeting and for a brief period as compared to spending a few years in a foreign country for higher education.

3.Trip duration - The trip duration is a crucial factor while deciding your travel insurance policy. You must buy a travel insurance policy for a slightly longer period than your trip's duration to accommodate any uncertainties and associated risks if you happen to extend your trip.

4.Sum Insured - Consider the travel insurance plan based on the extent of the sum insured you can avail of from your insurer. The maximum amount that your insurer can provide to reduce the financial burden caused by unexpected expenses or losses during your trip is based on the policy terms and conditions. It would help accommodate most losses if you avail of the maximum sum insured, even at a higher premium.

5.Frequency of travel - Decide the policy and the additional covers based on your travel frequency. For example, if you travel several times during a year whether domestically or internationally, you can purchase multi-trip travel insurance. It can protect your travel plans every time without necessitating you to buy a plan for each trip.

6.COVID-19 cover - In the wake of the increasing spread of the coronavirus, it is important to stay financially protected and choose travel insurance with COVID-19 cover to cover any medical emergency during your trip. Insurers have included this cover as a part of their travel insurance policy to secure their policyholders amidst the global pandemic.

Insurance providers offer a range of travel insurance policies that include the COVID-19 cover. It can cover the medical expenses if the policyholder tests positive and/or gets hospitalised during the trip.

Conclusion

A travel insurance plan is a basic necessity while making your plans for a business trip or vacation. It can help you with the necessary financial assistance with regard to baggage loss, trip cancellation, medical emergency, etc. Insurers have also started including a COVID-19 cover in such plans, considering the ongoing pandemic.

Choose the best travel insurance plan based on your destination, frequency of travel, trip duration, the purpose of the trip, etc. Purchasing the right travel insurance plan can be a financial shield to ensure a safe and engaging trip with your family!

All the people mentioned in this article are fictional, and all the examples have been incorporated as case studies. Any resemblance to a real case/person is purely coincidental and completely unintended.

Disclaimer: This article has been produced on behalf of Tata AIG.