WHICH TRAVEL INSURANCE SHOULD I BUY?

Everyone traveling outside their home country needs travel insurance. Where doubt creeps in is when deciding which travel insurance policy to buy. There are hundreds of plans to choose from, so let’s separate them into three main categories:

• Trip Cancellation Insurance (TCI) – TCI plans refund your prepaid expenses for trips, tours, and cruises. These are payments made in advance of your departure. If you can’t go on the trip only insurance is getting your money back for you. Also, you must cancel for a covered peril or reason to receive any benefit from the insurance. Acceptable reasons are limited to things like a medical condition, death in your immediate family, or loss of your principal residence. Some companies offer coverage that allows you to “cancel for any reason”, but they are very expensive. Conclusion: If you make a considerable upfront investment in a tour, cruise, bike trip or safari, TCI refunds the money you have paid prior to departure. These plans contain only limited benefits for medical expenses and evacuation costs.
• Travel Medical Insurance (TMI) – TMI plans provide coverage for inpatient & outpatient medical expenses, prescription drugs, emergency medical evacuation, adventure sports, accidental death, crisis management services, and much more. TMI plans are designed for the self-empowered traveler who makes their own itinerary. Whether it’s a ten-day trip to Paris, or a trek in the Himalayas, there is a TMI plan for you. Conclusion: TMI plans are a lower cost option when compared to TCI plans. They provide protection for accidents and unforeseen illnesses combined with emergency transportation services that get you to the nearest healthcare facility that can treat your condition.
• Emergency Medical Evacuation (EME) – Evacuation insurance is available on a stand-alone basis. EME pays for transportation expenses of the covered individual, but have limited coverage for the medical expenses, prescription drugs, etc. These lower cost plans are designed to provide transportation services in the event you have a medical emergency in a place that cannot treat you adequately. Conclusion: Buying a stand-alone EME plan could expose the traveler to medical expenses for hospital stays and outpatient treatments that are not covered. In contrast, all TMI plans offer an EME benefit plus separate hospital, outpatient, and prescription drug benefits for a nominal extra charge.

Tour and cruise companies have draconian cancellation policies. Basically, any money you pay upfront, i.e. the deposit to hold your reservation and the final payment one month prior to departure, are non-refundable. Therefore, it makes sense to protect your investment in high cost travel by purchasing TCI. The fastest growing segment of the international travel market are self-empowered, and self-guided travelers, age 25 – 55+ who seek adventure experiences in remote locations. They make their own reservations and participate in challenging and adrenaline pumping pursuits. These travelers paddle rapids, climb mountains, scuba dive, backcountry ski, or participate in activities that expose them to risks not normally undertaken by leisure travelers. TMIplans are perfectly suited for these situations. with medical, transportation and adventure sports coverage all combined into one affordable plan.