Travelling is a lot of fun. It opens your mind to new, interesting experiences. It is certainly the most enriching experience that money can buy. But your trip can go wrong in an instant. You could miss your flight, lose your luggage or even fall ill. Thankfully, a travel insurance plan can help you in such circumstances.
Purchasing travel insurance
It is possible to purchase travel insurance both offline and online. You can visit the branch of an insurance company or consult their agent. Insurance for foreign travel can also be purchased online. The second option allows you to save money as you can avail offers/ discounts.
No matter how you choose to purchase your insurance policy for international travel these are the steps you must follow.
Compare policies: Whether you purchase policies offline or online, you must first compare the various policies offered by various insurance companies. You can do an online research or ask your agent to provide policy brochures of different companies and policies.
Check your affordability: Look for an insurance plan that you can afford. An ideal policy is one which offers several important privileges but charges a smaller premium.
Destination: You must purchase a policy based upon the country you intend to travel to. Premiums typically depend upon the healthcare expenses of your travel destination.
Travel duration: You must also select the travel duration. Typically you can find policies for 10, 20 and 30 days travel. If you intend to undertake several trips you can also purchase a multi-trip insurance policy.
Reason for travel: You need to mention whether you are travelling for business or leisure. If you intend to travel for leisure, you may be required to provide your itinerary, on which your premium could be based. The insurer calculates the risk factors associated with your travel plan by looking at your itinerary.
Age: Your age also plays an important role in the premium you pay. It depends whether the policy is being taken for children under the age of 5 years, by adolescents and adults or for senior citizens above 60 years of age.
Sum insured: Your premium depends upon the sum insured. If the sum insured fails to cover the expenses, you are required to pay the remaining amount from your pocket. It is better to insure a higher sum to reduce any out-of-pocket expenses.
Inclusions and exclusions: Ensure you include all the risk factors relevant to your overseas trip in your travel insurance plan. To save on paying higher premiums, you could avoid risk factors which may not be relevant to your journey. E.g. if you are travelling only with cabin luggage, you can avoid paying for baggage loss.
Claim settlement ratio: This refers to the insurance company’s performance. This information is available on both the website and the company brochure. Claim settlement ratio indicates the number of claims settled by the company in a given financial year.