Many times I have had clients ask me, when should I purchase Trip or Travel Medical Insurance. What's the difference?
There are, of course, major differences that is why they are normally purchased for different reasons. Understand that the Benefit descriptions here are really short so be sure and read the full Benefit information of any plan before you decide that it's the one for you.
Trip Cancellation: When your trip is cancelled due to reasons out of your control.
Trip Insurance: Payment is based on the cost of your trip, typically up to $20,000
Travel Insurance: No Benefit
Trip Interruption: When your trip is cancelled due to reasons out of your control.
Trip Insurance: Payment is based on the cost of your trip - usually the amount of your trip
Travel Insurance: Pays to return you to your area of principle residence up to some amount, typically $5,000
Travel Delay: Lost or stolen passport travel documents, or money medical quarantine natural disaster your injury or illness or that of your travel companion
Trip Insurance: Up to $500 per insured person
Travel Insurance: No Benefit
Baggage and Personal Possessions: Damage to, loss of, or theft of your checked or stored baggage by a common carrier
Trip Insurance: Also while stored with your hotel. Typically will pay up to $1,000 per person
Travel Insurance: Usually pays much less per person maximum
Baggage Delay
Trip Insurance: Will pay some amount typically up to $100
Travel Insurance: No Benefit
Emergency Medical/Dental Expenses
Trip Insurance: Up to some specified amount usually something like $10,000
Travel Insurance: Up to policy maximum
Emergency Medical Evacuation/Repatriation: Reasonable expenses for evacuation to the nearest adequate medical facility
Trip Insurance: Typically up to $20,000
Travel Insurance: Up to a much higher amount than trip insurance, something like $500,000
Emergency Reunion or Return of Mortal Remains: Will pay for return of dependant child or grandchildren, transportation and lodging for a family member to be at your bedside
Trip Ins.: Typically will pay up to $3,000
Travel Ins.: Will pay typically up to $50,000, much higher than trip insurance
Common Carrier AD&D
Trip Insurance: Up to some specified amount typically $100,000 per person
Travel Insurance: Up to some specified amount typically $50,000 per person with a maximum of $250,000 per family
What does all of this really mean? Well, it looks like the Insurance specifically designed to protect your Trip investment (airline tickets, cruise tickets, hotel costs, etc) is better than Travel Medical Insurance which doesn't cover any of this.
If you are concerned about your $5,000 investment in your vacation this summer you can purchase Trip protection for approx 4%(based on age of 0-49) of the cost. That's $200 to protect our investment, not a bad deal.
At the same time if your trip is delayed you have some protection against that too. Really handy for things like Iceland volcanos, earthquakes, airline worker strikes or sudden outbreaks of terror activities in the country you had planned on visiting. For these 3 possibilities, trip cancellation and trip delay protection is well worth the money.
However, remember that Trip Insurance, like all insurance, must be purchased prior to something happening, so it's best to get it quickly after paying for you trip.