Life insurance, health insurance, and education insurance are practically familiar to the ears. Maybe some of us already have it. However, what about travel insurance? Many people do not know in detail about this type of insurance and are often underestimated. This insurance is critical to have when you are on vacation or have an assignment out of town.
Travel insurance is different from accident insurance. Because when you buy this insurance, you will be automatically protected with accident insurance, which is generally part of life insurance. Currently, there is also travel insurance that provides coverage for COVID-19. However, suppose you only buy accident insurance. In that case, you will not necessarily be protected directly from all risks and unpleasant things that can occur during the trip, such as lost baggage, falling sick, delayed departure, and so on.
So, what is the meaning of travel insurance? What are the types, and how do I claim them? What companies provide travel insurance products? Do Prudential and Allianz have this type of insurance? Well, take a look at the reviews that mihinoa.com has prepared below. Come on!
- 1 What is Travel Insurance?
- 2 Types of Travel Insurance
- 3 Benefits of Having Travel Insurance
What is Travel Insurance?
Travel insurance protects against all risks that may occur when a person travels, both domestically and abroad. This insurance is prioritized for people who often have high mobility, travelling out of town to abroad. The ownership of this protection reduces the financial impact of the risk of loss that may occur during the trip.
This type of insurance is not mandatory but should be owned. Especially if you like travelling and often travel, you are indeed highly recommended to have one. This insurance is flexible enough that you can purchase it on the spur of the moment before travelling. You can also buy this insurance at the same time as buying a plane ticket.
Types of Travel Insurance
Before deciding to buy this insurance, you need to know the following types of travel insurance based on the purpose of the trip, the place of travel, the number of insured, and the duration of the trip.
Insurance Based on Travel Purpose
Based on the purpose of the trip, insurance is divided into 2, namely insurance for vacation purposes and insurance for work purposes. What distinguishes the two types of insurance is the number of premiums. Generally, insurance for business or work purposes is offered with a higher premium because it carries a greater risk.
Insurance Based on Place of Travel
Travel insurance can also be distinguished based on travel (including land, sea, air), namely domestic or domestic insurance and foreign insurance. Domestic insurance provides coverage for domestic trips, while foreign insurance covers mobility when travelling to and abroad.
The amount of premium for the two types of insurance is certainly different. Overseas insurance with destinations like Europe, Australia, and America certainly has a more significant premium. There are also special foreign insurances such as Hajj and Umrah insurance which are also of more excellent value.
Insurance Based on Amount Insured
Based on the number of the insured, travel insurance is divided into individual travel insurance and group travel insurance. Of course, insurance premiums for groups will be cheaper and cheaper to have than personal insurance.
The more individuals are covered, the smaller the premium to be paid. Usually, this type of insurance is used by travel agents or schools and colleges that bring groups for vacation.
Insurance Based on Travel Period
The next type of travel insurance is determined based on the time of travel divided into two types, namely one-time trip insurance ( single trip insurance ) and insurance for all trips within a year or a certain period ( annual trip insurance ).
For those of you who often travel within a year, it is more effective to choose annual insurance so that you don’t have to bother buying insurance when you leave, especially for those who often go on business trips several times a year. Meanwhile, you can choose insurance for one trip period according to your needs for those of you who rarely travel.
Benefits of Having Travel Insurance
How important is it to have insurance when you travel, such as travelling or business trips? Is it worth it between the costs to be incurred for travel insurance and the benefits? Then, what are the benefits of travel insurance and what is the importance of this travel insurance? Check out a full explanation of the benefits. Come on! That way, you can reconsider how important it is to have this type of insurance.
Compensation for Damage or Loss of Baggage
By having a travel policy, you will get compensation in case of damage or loss of baggage. Luggage problems are widespread, and even you may have experienced them. Damaged or lost luggage will undoubtedly spoil your travel moments. So, make sure you have insurance that you can claim to compensate for losses, yes!
Compensation for Late or Canceled Trips
A trip that is suddenly delayed or even cancelled will make you feel bad. Plans that you had carefully planned fell apart. There is a risk of delay or cancellation with every trip, and it can happen at any time. This is where it is crucial to have insurance when travelling that will compensate if the situation occurs. Generally, this insurance applies to flights by plane.
Covered Medical Expenses
Pain can come at any time, including when you are on a trip. However, of course, no one wants the moment of the trip to be ruined by suddenly falling ill and requiring medical treatment, especially if the treatment requires expensive costs.
Fortunately, this type of insurance also provides coverage for medical expenses when you are sick while travelling. The insurance company will provide coverage for medical costs, so you don’t need to spend money. Finance is safe, and travel becomes comfortable!
Accident and Death Compensation
By having this insurance, the insurance company will cover the costs of accidents and deaths while travelling. Of course, this is very beneficial for the primary breadwinners in the family because the insurance will provide the sum assured to the family.
Bearing Financial Losses Due to Other Factors
Travel insurance also covers all financial losses due to other factors such as natural disasters, terrorism, and riots during the trip. All losses, both physical, mental, and economic, will be covered by the insurance.