How does travel insurance work?

1. Generally about insurances and how do they work?
2. What is franchise and insurance limit?
3. What does the insurance NOT cover?
4. What is covered by the primary and extended insurance policy?
5. The Covid-19 insurances and plans: what should they cover?
6. How to choose the optimal insurance plan?
   

If you’re planning a trip abroad, it's a good idea to consider purchasing travel insurance. We expect only good vibes from the vacation, and we wait for it, plan the best attractions, and think that nothing can go wrong. However, the new climate, unusual food, and modern city bikes can provoke unpleasant situations. If you don't want to spend "attractions" money on sudden treatment in a foreign country, it's better to take care of insurance when you are still at home.

The primary modus operandi of travel insurance is pretty simple: if an insured event happens, you call the insurance company hotline, and they give you the address of the nearest medical institution where you can get help or request a doctor directly to the hotel. The insurance company usually covers all further treatment expenses.

What is the franchise and insurance limit?

Let's understand the basic terminology of insurance agents. So what is a franchise?A franchise is a sum of money that you would pay (besides the insurance premium) if an insurance case happened—the higher the franchise, the lower the insurance price. And in the case of travel insurance, they're almost always mandatory. It means that the insurance company compensates only the sum above the franchise. For example, if you spent $1300 on drugs or a doctor's visit, and your franchise amount is 1000$, the insurance company will compensate only $300. This is similar to insurance deductible for medical insurance in the US.

An insurance limit. It is a maximum amount that can be compensated in frames of a single insurance case. Experts recommend €30000 minimum for travel to European countries and countries like  Egypt and Turkey. For Asian countries (Thailand, China, Indonesia, etc.), it is recommended to purchase the insurance with a minimum limit of $50 000.

What is not covered by the insurance?

Most companies adhere to a similar policy regarding non-insured events.

• Cosmetic and plastic surgery. - For those times when the nose-job just can’t wait.
• Dental services (except for emergency treatment).
• Childbirth - Something you generally know well in advance.
• Medical goods and medicines for health improvement and prevention: vaccines, vitamins, preventive examination, spa treatment (why is spa even mentioned?)
• Treatment of diseases that arose before the conclusion of the contract and pre-existing conditions.
  

Keep in mind that each insurance company has its own rules, and it is essential to get acquainted with them before purchasing insurance.

What is covered by the primary and extended insurance policy?

The primary policy covers services such as:

• Emergency medical care.
• Transportation to the nearest medical facility.
• Medical evacuation/repatriation - the insured delivery to a medical facility in the home country, if appropriate.
• The body repatriation in case of the death of the insured.
• Purchase of medicine prescribed by a doctor.

The extended insurance includes all of the services mentioned above plus:

• An extension of stay.
• Early return home in case of a close relative's death (the return ticket’s cost is compensated under a certain amount).
• Compensation in case of flight delays.
• Payouts in case of delayed baggage.
• Urgent gynecological care for pregnant women.
  

*The most common insurance conditions are listed, which may differ depending on the type of insurance and the insurance company providing the service.

The Covid-19 insurances and plans: what should they cover.

We always suggest our travelers purchase travel insurance because it's a lot safer and gives you peace of mind. However, when it comes to Covid19 - insurance is not a suggestion. It is simply a must. When choosing the Covid19 travel insurance, consider these facts:

• The types of medical assistance does it provide.
• Is there a hospitalization included?
• Is the medical treatment included?
• What is the medical coverage limit? (The best ones we found were about $500,000)
• Do you need to use your personal health plan first, or is the Covid19 medical coverage primary?
• Does the program offer "cancel for any reason" coverage?
• Does the plan provide coverage for "cancellation due to the positive Covid19 test"?
• Is there an opportunity to add optional "cancel for any reason" coverage after you already bought insurance?
• Does it provide lost/damaged baggage and missed connection coverage?
  
  

When choosing your insurance company, first try contacting the one you’re already working with - they may have special discounts for their existing customers. It may also be more convenient for you to work with the company you used to.

If you are not satisfied with your company's proposal, check out these insurers: Cat 70, HTH Worldwide, Tin Leg, USI Affinity Travel Insurance Services (they have the best conditions we found so far).

How to choose the optimal insurance plan?

Before choosing the travel insurance plan for you and your family, make sure you have reviewed all the options and checked each plan's conditions, rules, pros, and cons. Be sure to check the limits of payments, as well as force-majeure situations when the insurance company may refuse to pay. All the details are essential.

Please don't leave it for the last moment, being traveling must not only be exciting but also, at the same time, safe.

If you want your trip to be the “Trip of your dreams”, why not plan it with Tripening? We take care of your entire travel needs,  starting from answering the question of "Where to go?" to the actual trip planning, including hotel booking, car reservations, flight booking, restaurants, and attraction suggestions based on your wishes. Visit our website to plan and book your next getaway.