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Travel insurance offers health benefits which can protect expats wherever they’re headed. This also includes financial protection from illness and injuries along with luggage loss or delay during the trip.
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You may have heard of international health insurance, so let’s now cover its short-term counterpart: travel insurance. In this blog post, we’re gonna go over travel insurance along with the coverage, cost, and all there is to know to ensure your well-deserved vacation is equally as safe.
What is Travel Insurance?
Travel insurance offers financial protection should you face certain pitfalls when you’re traveling or on a holiday. These include illnesses and injuries along with luggage loss or delay.
If your luggage gets lost during the layover process or you end up getting sick or injured during your trip, your travel insurance policy will cover your lost items, illnesses, or injuries sustained.
Types of Travel Insurance
Policies and coverage may vary across different insurers and providers, but generally, they will fall into one of the following types of travel insurance:
- Single Trip: Covers one-off trips for a set period of time.
- Annual or Multi-Trip: Covers as many trips as you take within a full year. This type of travel insurance is usually more cost-effective than the single trip option should you take more than two holidays in that period.
- Backpacker or Gap Year: Covers multiple destinations over an extended period of time. You may need to cover the kinds of activities you plan to do (sports, work, volunteering).
- Winter Sports: As the name suggests, this type of travel insurance is perfect for skiing, snowboarding, or other winter sports. Insurers consider these activities dangerous and so they’re excluded from most policies.
- Worldwide: There are two types of worldwide policies–Policies that cover the US and policies that don’t.
- European: Not clearly defined, as certain policies cover areas that aren’t actually in Europe.
- Family: Covers two adults and up to four children traveling together. This is perfect for parents whose children are 18 or younger and live with you.
Travel Insurance Coverage
Travel insurance included coverage from common travel mishaps, such as delayed flights, to major medical emergencies. Most travel insurance policies cover the following:
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- Lost and/or stolen luggage (luggage cover is a bonus with certain policies).
- Emergency medical fees
- Cancellations, delays, or disruptions to your trip (cancellation cover is a bonus in certain policies).
- Legal costs, in case you get sued for property damage or causing injuries.
The exact coverage available, along with any and all additions, will vary depending on insurers and policies. As always, we highly recommend that you familiarize yourself with your insurers or providers and the policies offered before purchasing.
Travel Insurance Exclusions
Despite its various benefits, there are certain limitations and exclusions in which travel insurance policies do not cover, such as motorcycle riding, dangerous sports, or more.
A lot of what’s exempted really depends on your policy and insurer of choice, but the following are some possible exclusions in which travel insurance does not cover (or is not available without additional payment):
- Suicide, attempted suicide, or any intentional self-injuries.
- Abortion, miscarriage, or regular pregnancy.
- Dangerous sports.
- Alcohol or addictive substance-induced actions.
- Riding or traveling on a motorcycle.
- Trip disruptions from events such as civil unrest, earthquakes, pandemics, or acts of terrorism.
- Expensive or luxury items (such as watches, jewelry, laptops, and cameras).
Effective and Expiry Date
Travel insurance becomes effective immediately right from the date when your coverage begins. This could be either your departure date or the date on your confirmation documents.
Meanwhile, travel insurance expires when the insured returns to their home country or on the expiry date as specified on the schedule or contract.
Travel Insurance Cost
According to Forbes Advisor’s travel insurance cost analysis, the average cost of travel insurance is 5-6% of your trip costs. Let’s say your trip is $5,000, this would make your travel insurance cost around $228.
As you might be able to tell, the cost of your trip is the key defining factor for your travel insurance costs. This means the more you spend on your trip (and insure the trip for), the greater your insurance cost. The range of insurance costs also vary depending on your policy’s level of benefits.
Below are some examples of possible travel insurance costs based on the cost of your trip.
| Cost of Trip | Average Cost of Travel Insurance | % of Trip Cost |
| $1,000 | $61 | 6% |
| $2,500 | $120 | 5% |
| $5,000 | $228 | 5% |
| $10,000 | $512 | 5% |
| $20,000 | $1,204 | 6% |
| $30,000 | $1,848 | 6% |
| $50,000 | $3,091 | 6% |
Age and number of travelers are also factors that affect your travel insurance costs. The length of the trip can also influence your travel insurance costs, which means a longer trip can cost more as it increases the likelihood that you may file a claim.
| Traveler’s Age | Average Cost of Travel Insurance | % of Trip Cost | Cost Difference from Age 20 |
| 20 | $224 | 4% | – |
| 30 | $228 | 5% | $4 |
| 40 | $294 | 6% | $50 |
| 50 | $310 | 6% | $86 |
| 60 | $420 | 8% | $196 |
| 70 | $555 | 11% | $331 |
| 80 | $907 | 18% | $683 |
| Traveler Type | Average Cost of Travel Insurance | Cost Difference from One Adult |
| One adult | $294 | – |
| Two adults | $311 | $17 |
| Two adults with two children | $323 | $29 |
Factors to Consider before Purchasing Travel Insurance
Now, there’s even more to travel health insurance than its coverage and exclusions. As with any type of insurance plan, one crucial element is what to consider before making your purchase.
From medical history to reading the terms & conditions and not deciding solely based on the price, there are a number of factors to take into consideration before signing off on the contract.
Be Honest about your Medical History
When applying for travel insurance, it’s important to provide the insurer with all the information they need. Once you make a claim, the insurer will then check your medical history.
Failure to answer truthfully and accurately in your application, or disclosing crucial information could lead to the insurer rejecting your claim
Read the Terms and Conditions in Detail
During the application process, make sure to read the terms and conditions in detail to be informed of coverage and exclusions. Once again, coverage and exclusions can vary between various insurers and providers alike. If you have any questions, please don’t hesitate to speak up.
Don’t Decide Solely Based on the Price
The cheapest deal might not exactly be the best. Thus, it’s always crucial not to decide and choose travel insurance policies only based on price as that might not exactly give you the coverage you need.
Frequently Asked Questions
Are there any differences between travel insurance and international health insurance?
Travel insurance is for short-term, temporary stays abroad in which you will return to your home country in a few days. Meanwhile, international health insurance is for students studying abroad, family relocations, or business professionals heading abroad to work there.
Will travel insurance cover if I change my mind on my trip plans?
Most travel insurance policies will NOT cover cancellations resulting from changing your mind. The only way around this is to select travel insurance plans with the option for “Cancel for any reason coverage”.
Can I buy travel insurance after booking?
You can buy travel insurance directly after you book your trip. However, it’s strongly recommended that you purchase the insurance plan as early as you can. This is because the longer you wait, the higher the chance you have at missing out on certain benefits.
What is the “Time-Sensitive Period” on travel insurance?
The Time-Sensitive Period is a short time (14-21 days) after your initial trip payment or deposit. This is the time period in which you will be able to include a waiver in your travel insurance plan purchase. Once this timeframe passes, the travel insurance policy will not include a waiver.
Does single-trip travel insurance cover multiple countries?
Single-trip travel insurance can cover more than one country.
Conclusion
When it comes to packing up and preparing for traveling abroad, whether it’s on your own or with your beloved family, there’s more than meets the eye. Beyond electronics and toiletries or clothing and mobile signals lies the need for utmost healthcare and wellbeing.
Remember not to choose your policy solely based on price, make sure to check the coverage and exclusions in detail. Also, don’t hesitate to speak up and ask questions should there be something you’re unsure of and your insurer or provider will do their best to answer your queries.
By familiarizing yourself with your selected policy in detail, including its coverage and exclusions, you ensure that you (and your family) get the right healthcare in your well-deserved vacation abroad. With that being said, take good care of yourself and we wish you a safe and enjoyable trip abroad.
You wouldn’t want pitfalls like illnesses and injuries ruining your well-deserved vacation, do you? That’s where travel insurance comes in. Check out our travel insurance page here for more information!
Should you have any further questions or queries, please don’t hesitate to get in touch with us.
Serena earned her Bachelor’s Degree in Psychology from the University of British Columbia, Canada. As such, she is an avid advocate of mental health and is fascinated by all things psychology (especially if it’s cognitive psychology!).
Her previous work experience includes teaching toddlers to read, writing for a travel/wellness online magazine, and then a business news blog. These combined experiences give her the skills and insights she needs to explain complex ideas in a succinct way. Being the daughter of an immigrant and a traveler herself, she is passionate about educating expats and digital nomads on travel and international health insurance.
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