What You Should Know About Travel Insurance Plans

Travel insurance plans are purchased by roughly 30% of U.S. travelers. The vast majority of travel insurance is purchased by travelers that book vactation packages, overseas trips and cruises. In other words, the more expensive the journey, the more likely people are to purchase travel insurence to protect their investment.

Travel insurance plans offer several benefits. If you should get sick while on your journey the majority of policies will pay for medical care. But be warned, travel insurance will not cover you if you decide not to take a trip due to a health scare like we have recently seen with the swine flu outbreak.

Policies will have a provision for terrorism, but not for health scares whether real or perceived. You can however, get a “cancel for any reason” clause and receive a partial refund if you pay a higher premium. Bear in mind that each policy is different and that you should consult with a qualified insurance agent to find the best fit for your situation.

Other provisions that are covered through travel insurance plans, and again, you must consult your insurer to find out, is trip cancellation due to job loss. With the current recession causing more and more people to lose their jobs, travel insurance plans are a good hedge against the possibility of being held liable for the costs of an expensive trip that you can no longer afford to take.

You should also understand that in many cases credit cards will offer travel insurance coverage for unexpected events. For an added fee many credit cards will cover you for missed flights and emergencies, but be careful to check the fine print first. It is also suggested that you speak to a representative from the credit card company to verify the coverage.

So the question remains, is travel insurance worth the cost? Experts estimate that travel insurance plans will cost between 3 1/2% and 9% of your total trip. Factors such as your age and the kind of coverage plan that you require will dictate how much you will pay. In many cases you may be covered under your own medical insurance if a medical emergency should arise so be sure to check that out as well. If you are traveling out of the country, you may or may not be covered under your health insurance policy, for instance.

In the end, travel insurance plans are very subjective. They are definitely not a one-size-fits-all solution. It is wise to discuss it with your insurer and let them know the specific details of your trip. You can then go over the options that you have and come to the decision of whether or not the cost of having travel insurance is worth it to you.