Travel insurance is an insurance policy that covers the losses, while an individual is in traveling.
Travel insurance is a contact between an individual and the insurance company, in which the individual pays some amount of money to the insurance company in exchange to receive some benefits, while he/she is in traveling. Travel insurance covers the medical expenses and financial losses, that might incur while traveling.
Travel insurance coverages are broadly classified into five categories
1. Trip cancellation
Travel insurance covers the trip cancellation losses, when your trip gets canceled due to the travel cancels, weather changes, sudden business conflicts, flight cancel, other security purposes and sudden health problems.
2. Trip delay or missed connection
Travel insurance covers the trip delay or flight miss expenses. You are coming to the air port by taking a taxi, suddenly taxi breaks down on the way to air port. Due to this you missed your flight. If you want to take ticket for the next flight, you require some extra amount. If you have the travel insurance, then the insurance company pays the extra amount to buy the next flight ticket.
3. Baggage loss
Travel insurance recovers the baggage loss or important things you lost, while you are traveling. This loss might be due to authorities negligence or theft.
4. Emergency medical expenses
Travel insurance covers all the possible emergency medical expenses, while you are in traveling. While you are in a holiday trip,suddenly you require emergency medical service, but it is too much cost to take service abroad. Then the insurance company provides the cost of medical expenses, when you are in trip.
5. Accidental death benefits
Travel insurance provides the death benefits, if you die while you are in traveling due to health related problems, or terrorist activities. If you die due to the bomb blast in your flight and if you have the travel insurance, then the insurance company gives some amount for your dependents.
Due to the above said benefits, every individual must opt for a travel insurance.