How to choose travel insurance that suits you best

As a frequent traveler, you need to choose travel insurance that protects you.

However, choosing the right travel insurance that protects you against flight delays, loss of baggage, trip cancellations and other hassles. is not always easy. You have to understand if you are eligible for the policy.

How to choose travel insurance that suits you best

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The criteria

This depends on the destination you are traveling to. Schengen countries only allow travelers up to 50 years of age to hold an annual travel insurance plan.So, if you have crossed the 50-year mark, you have to get a plan for that particular trip. The criteria for different plans are:

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Family plan

This will cover two adults up to the age of 60 years and two children up to the age of 21 years. You can get floater benefits with this insurance policy.

Student plan

Students between 16 and 40 years of age can avail this policy. It is best suited for those going abroad to pursue higher education.

Senior citizen plan

These plans cover the age group of 60-85 years.

Once you know the eligibility criteria, consider factors that will affect your sum assured and the premium of the policy. This will help you select the best travel insurance policy.

The dynamics

Your destination plays a role in determining your premium. Typically, premiums are high for places where health costs are expensive. Moreover, how long is your trip going to last is another point.Naturally, the longer your stay, the higher the premium.

Your travel insurance premium depends on other factors too.

Also read: How to choose a good Term Insurance Policy that suits you best

General health

Any pre-existing illness that is tied to an undesirable habit such as smoking or drinking will strictly not be covered.

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Sum assured

Higher the sum assured, the higher will be the premium.

Country

It is important to do a little research about the country you are going to visit. For instance, for countries like the US where the medical costs are high, you might need a good medical cover.

If you are traveling to a country that is prone to natural calamities like earthquakes, you might need an additional cover that includes loss against natural disasters.The premium could be higher for these policies.

Activity

If your travel plan includes just sightseeing and shopping, then a regular travel insurance plan will be sufficient. However, if you plan to participate in adventure sports, you will need to take an add-on cover that includes injury because of adventure activities which will mean more premiums.For instance, some policies cover bike accidents or sporting injuries sustained during your trip.

Age & Type of plan

You can customize your plan according to your age and needs. For instance, senior citizens can opt for a large medical cover that includes specific diseases and hospitalization expenses. This could mean a higher premium.

Extensions

Before you get a policy, consider the possibility of your trip getting extended. You can just go for a policy that covers you for slightly longer than your travel days.

Claim limits

Another factor to take note of is the limits offered under the policy. Each plan will have its specific limits, so it makes sense to be aware of the extent to which you are covered under the insurance plan. This way, you will be financially prepared to handle any cost that goes beyond the specified limit.

In case you do not want to spend much on your travel insurance plan, consider getting one offered by your credit card.

Also read: Here is why you need a Personal Accident Insurance Policy

Complimentary travel insurance

Many banks provide travel insurance on their credit cards for free. These are typically on premium cards that charge an annual fee.

So how does this work? Usually, for your insurance to be activated, you will need to charge the price of your air tickets to your card. However, there are some important differences between a credit card insurance policy and an ordinary travel insurance policy.

Just holding your card is not sufficient

Read the fine print carefully to see what are the conditions that you will need to fulfill for the insurance to get activated. It could be charging the cost of your flight tickets to the card or paying a certain amount of your trip expenses with the card.

Only the cardholder is protected

Check if the travel insurance plan offered by your credit card issuer covers your family members too. If it covers them, ascertain how to activate the cover. If not, check if the cover for your family members can be activated by paying additional fees.

No pre-existing conditions

If you have a pre-existing medical condition, the travel insurance offered by the bank may not cover for any claims that arise due to that condition.

Adventuresports not included

These insurance policies do not cover adventure sports and activities. If you are relying on this plan, it is a good idea to consider this before participating in such activities while on vacation.

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Limits to trips

Your credit card provided by travel insurance may not cover you if you are planning an extended trip that is more than three months. Usually, these travel insurance policies have limited time. Read the fine print carefully to check this.

If you think a paid travel insurance is a good option, consider an annual travel insurance plan to save money. Frequent flyers choose to get an annual multi-trip policy to save money.These plans are usually valid for a whole year and there are no restrictions on the number of trips you can take within the year.

However, before you opt for a multi-travel insurance plan, here are a few points you should consider.

The Travel Limit for Each trip: Annual insurance plans have restrictions for each trip. Usually, the period ranges from 35 to 60 days depending on the insurer. Know the time limit for each stay to ensure your insurance plan remains in place for your trip.

Countries Covered: Travel insurance for regions like the US and Canada attract higher premiums. Check if the countries you are likely to visit are covered under the travel plan.

An annual travel insurance plan can be customized if you are likely to take multiple trips in a year. Instead of randomly picking an insurance plan, it is good to search and compare plans online and then customize it as much as you can to get the full advantage.

However, remember to compare between different insurers to see who is offering you the best deal, to be tension free on your vacation.Check if the insurance company has 24×7 helpline numbers,an easy claim process, and multiple payment options before buying the plan.Have an awesome and stress-free vacation!

About the author

KishorKumar Balpalli, believes that financial literacy and discipline is the key to one’s financial freedom. KishorKumar is a Certified Financial Planner, Personal Finance Blogger & the Founder of myMoneySage.in an award-winning Wealth Management platform. myMoneySage simplifies investing for individuals and amplifies business growth for Registered Investment Advisers by leveraging Artificial intelligence and machine learning. The AI of the machine plus the intellect of the human advisor enables comprehensive & client-centric advice at a fraction of the cost of a conventional adviser.

myMoneySage.in is an award winning personal finance platform. It helps you aggregate all your personal finance accounts like FD, Equity, Mutual Funds, PPF EPF, NPS including, Credit Cards & Loans etc. It's one place where you can track, plan and invest seamlessly. myMoneySage.in empowers you to invest in zero commission direct plans of mutual funds thereby helping you generate higher on investments. The best part is it comes with a lifetime Free plan.


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