Types of Travel Insurance Plans: How to Buy the Right Coverage

An NMSC study projects that the Indian travel insurance market will reach USD 1005.9 million by 2030 at a CAGR of 14%. It shows people now consider travel coverage more important because global events have made travel less predictable. Whether one is traveling for work, studies, or recreational activities, coverage ensures they get protection against all the potential risks. It helps policyowners mitigate the unknown risks to health, baggage loss, refunds, and cancellations. But which travel insurance plan to go with? So, scroll down to learn all the types of travel insurance coverage and how to select the right plan based on your needs.

Travel Insurance and Its Significance

Travel insurance is a type of protection against potential financial and medical risks a person might face while traveling. This includes cancellation of travel plans, refunds due to missed flights, lost luggage, and even hospital bills in the city of visit. It is mostly bought before the date of travel and lasts till the policy owner returns to their place. The price depends on the destination (domestic or overseas) and the duration of travel.

Consider a family of four who plans to travel to Europe to understand the importance of travel coverage. Their entire trip costs about INR 6 lakhs, including flight and hotel bookings. Suppose one of the members gets injured three days before departure, and the family has to cancel their travel plans. If their travel bookings are not insured, they will lose the total amount of expenses paid in advance for bookings. However, with the right travel insurance, they can recover most of their fees paid and reschedule their holiday.

Types of Travel Insurance

Different types of travel insurance serve the distinct needs of travelers based on their destination and budgets. Let us discuss each classification to understand how they cater to the diverse travel plans:

Based on Travel Destination

• Domestic Travel Insurance: This is the best fit for people who are planning to travel within India for vacations, business, or pilgrimages. It protects them against medical emergencies and booking cancellations, among other things.
• International Travel Insurance: This insurance is intended for tourists and professionals traveling abroad. In addition to meeting all visa-specific requirements, it provides coverage for medical expenses, lost luggage or passports, aircraft delays, and cancellations.

Based on Traveler Category

• Student Travel Insurance: This is a policy specifically for students studying abroad. It gives them protection against study interruptions, tuition reimbursements, sponsor protection, and more.
• Senior Citizen Travel Insurance: Designed for senior citizens and older adults over 60 to meet all their travel and medical insurance requirements. It covers age-specific health conditions and emergency help while traveling.
• Family Travel Insurance Plan: This broad travel coverage insures the entire family. It covers everyone, including spouse, children, and dependent parents, within a single policy.

Based on Trip Frequency

• Single Trip Travel Insurance: This type of travel insurance is suited for light travelers who only want coverage for one particular journey. It starts from departure and ends upon return.
• Multi-Trip Travel Insurance: Ideal for people who want to get insurance for several trips within a year and travel frequently. It removes the hassle of buying multiple policies each time they travel. It gives a defined set of coverage for each trip.

Based on Coverage Type

• Trip Cancellation Insurance: This travel insurance gives the policyholder coverage against cancellations. If they decide to change their travel plans due to reasons covered in the policy contract, they become eligible for refunds.
• Travel Health Insurance: Travel Health Insurance is suited for those visiting a country with expensive hospital charges. It covers all the medical bills, including the cost of surgeries and transportation, along with emergency evacuation.
• Business Travel Insurance: Best for corporate travelers who want to insure multiple trips. It covers all the business equipment expenses and conference cancellations.

How To Choose the Right Travel Insurance Coverage?

The right travel insurance depends on the travel needs of the policy owner. These include the total cost of the trip, destination type, duration, medical conditions, and risk-taking ability. To buy travel insurance, research online for travel coverage as per actual trip expenses. Let us discuss these considerations below:

• Destination and Territory: Check if the policy is applicable in the country of visit and includes the transit.
• Medical Limits and Evacuation: The policy must provide insurance for medical bills and emergency transportation.
• Exclusions and Pre-existing Conditions: Read the fine print about exclusions to avoid any surprise terms and conditions. Declare medical history to avoid denial of claims.
• Activities and extras: If planning risky activities, include sports or adventure coverage.

Plan Smarter, Travel Safer with Finkeda!

Buy travel insurance plans that give complete protection against unforeseen risks at the destination of your visit. They eliminate the anxiety of traveling to unknown destinations by saving the policyholder’s trip expenses. The policy covers their health needs and booking cancellations, and assists them in case of any emergency.

When buying, verify the cancellation terms and conditions by reading the fine print, and make sure the medical coverage limit is adequate. Also, check the waiting periods, pre-existing condition rules, and claim processes that are important during emergencies. So, don’t wait. Make safe travel plans with Finkeda and get quotes, compare plans, and buy travel insurance for all your trip needs.