Is Travel Insurance Worth the Cost?

In a recent survey conducted by Princeton Survey Research Associates International, they found out that only 21% of people travelling in cruise or airlines are actually availing of the travel insurance. With roughly about 7% of travelers purchasing it regularly, travel insurance hasn’t been that sound and necessary for most people in transient.

couple-luggage

This begs the question about the factors that affect people’s affinity towards travel insurance. Following that, about 37% responded that travel insurance is worth the cost, coupling the need on times of trip cancellations and for medical coverage. But the common conclusion to this reality is that people are barely aware of what travel insurance covers, thus hampering its claim on necessity.

Firstly, it’s important that we recognize its importance before we list its possible drawbacks. A travel insurance is most particularly helpful when you’re taking expensive and non-refundable trips. Trip cancellation is the main reason why people avail of travel insurance. The cheaper versions of these insurance offers about 70-90% refund to all the non-refundable expenses in your ticket if you encounter a sudden mishap or unfortunate event before your trip, such as death of a family member or you suffered illness. The more expensive plans don’t ask you for the reason at all and just allots you the refund for whatever reason there is that caused the cancellation of your trip. But it has to be studied well, just as how you study emergency benefits in credit cards. Otherwise, you’d be left expecting for an insurance coverage that isn’t stated in the plan at all.

Secondly, it also works for medical coverage. When you incur an unprecedented medical attention during or after the flight, these insurance companies can give you aid in immediate evacuation or transportation. For example, if you were infected with a disease in a foreign country and you need to go back to your home country, your travel insurance can save you from this catastrophe. And this is important because many health insurance providers don’t provide transportation service or medical attention abroad. But you have to always check if these things are covered in the plan that you bought.

The third benefit is on concierge services which you can make use of to contact doctors around the area or some family members.

Clearly, the greatest constraint to availing a trip insurance is the cost. You would need about $200-$400 for a $5000 trip. It’s about 4-8% of the entire cost of the trip. But variations are pulled based on age of the traveler as well. That’s really expensive to think about most especially if it’s not something that you can make use of later on. Plus, there are other insurance outlets that you might have availed of already that a travel insurance could possibly duplicate. That means that you are spending for two providers that entitles you to the same benefits.

Regardless of the constraints, a traveler must rightly assess the purpose of the trip and the gravity of necessity of insurance in such specified travel.

There are thresholds of significance that people can use as a reference in availing travel insurance. If you are travelling abroad, the risk of financial distress is high so you might need to have one. In case that you need to be airlifted from a mountain in a foreign land, I’m sure you wouldn’t want to pay $45,000 just to get the medical attention that you need at the moment. You will also be needing a travel insurance if you’re in a domestic non-refundable trip. We’re not fully in control of circumstances and the travel insurance can save us from these unprecedented expenses.

These aren’t the only factors of importance. We can round it up to being saved from theft, getting an attorney referral overseas, being secured for a trip due to terrorism threats, insurance of lost baggage, having a hotel in the airport in case of trip cancellation or getting your body home if you die.

On times of emergencies, you don’t know how much you’re going to be needing. You wouldn’t know if you need a $1800 ambulance travel or a $100,000 trip from Russia to US. And this importance hasn’t been missed out. Indeed, according to US Travel Insurance Association, about $1.9 billion was spent by American travelers last year for trip insurance alone, about 50% higher compared to 5 years ago. Apparently, trip insurance has a continuously growing market and more people are recognizing its importance.

On times that we have specified, i.e. travelling abroad or availing of expensive non-refundable ticket, a travel insurance is just worth the cost. It’s hard to spend on an uncertainty but whether we like it or not, we’re not aware of when are we going to need it.

I hope you enjoyed this important discussion. Feel free to copy/paste this link and email it to anybody you know that might be able to use this info.

If you liked this article, please click the "Like" button below for Facebook: