Is Travel Insurance a Good Idea?

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We all love going on vacation and getting away from the hustle and bustle of everyday life. It can be exciting to map out where you’ll go and all the fun things you’ll do while you’re there. While planning all the details, don’t forget about buying travel insurance.

There are two main types of policies you can buy – single trip and annual insurance. As the names suggest, single trip insurance covers you for one trip, whereas annual insurance covers you for multiple journeys within a set period.

Travel Insurance Basics

There are various types of travel insurance coverage, many of which offer different features. Choosing the one that’s right for you will depend on factors such as where you are going, what you will be doing, and the length of your trip.

Travel insurance could offer you peace of mind should the worst happen during your vacation. Some common options are:

  • Cancellation. Cancellation insurance could help you recoup your hard-earned money if something causes you to cancel your trip. It also might cover cancellations that occur if airline delays make you miss an event, or if the tour provider goes bankrupt. Be sure to ask for specific details of the coverage.
  • Baggage. Nothing is worse than losing your baggage before you even reach your vacation destination. Baggage coverage could take some of the strain out of replacing your toiletries, clothing and other necessities.
  • Medical. Overseas medical providers may want you to pay upfront for your care, so medical insurance might be something to consider if traveling abroad.
  • Evacuation. Natural disasters could happen anywhere at any time. Of course, some places are naturally more prone to disasters due to their geography and climate. Having evacuation insurance could help alleviate the financial strain of getting out of harm’s way.
  • Death and dismemberment. This type of policy is one we all hope to never have to use. It provides your family with compensation should you perish during your vacation and is an option you might want to consider if you do not currently have a life insurance policy.

In addition to the basics listed above, certain categories of travelers might benefit from buying travel insurance, including:

  • Package tour and cruise customers. Tour operators and cruise lines may not be very lenient when it comes to missed vacations and voyages.
  • People with lengthy and/or complex itineraries. If one part of your trip doesn’t go as planned, the remainder of the trip could be negatively affected and even missed.
  • People on Medicare who are traveling internationally. Medicare won’t usually cover occurrences that happen in other countries.

Is it Worth It?

Travel insurance can help give you peace of mind, so it might be ideal if you are a worrier, if your trip costs a lot of money, if you have a legitimate concern about the vacation destination, or if you have no back-up insurance.

If you have booked a short, inexpensive domestic trip, you may not want to invest in travel insurance. Also, many travel insurance policies do not cover some pre-existing medical conditions.

In certain instances, your insurance or credit cards might already provide the coverage you need. It’s a good idea to learn about any current policies before you spend money on a new travel insurance policy.

If you are planning to try out some extreme sports, visiting a developing country, or anything else considered risky, taking out travel insurance might be worth investigating. However, the concept of risk is a very personal one that varies from person to person, so whether or not you take out travel insurance is a very personal choice. If you are considering purchasing travel insurance, be sure to investigate the coverage thoroughly.

If you’re taking a trip this summer and are interested in travel insurance, BancorpSouth can help. Visit here to learn more.