The 5 Basic Types of Travel Insurance

Travel insurance can take on a variety of forms. With things like extreme sports coverage and coverage for terrorist activities becoming more widespread, individualized insurance packages are more diverse than ever before. However, there are five basic types of coverage suited for the average traveler. These have been and continue to be the most popular choices for securing a trip both financially and personally. Because each trip and each traveler is different, most travel insurance providers offer these types of coverage alone or in any combination.

1. Trip Cancellation
Trip cancellation coverage is the most common type of travel insurance. It typically covers a wide array of cancellation causes, including medical emergencies, extreme weather conditions, or airline issues. With some policies, cancellations due to unsafe political conditions or the bankruptcy of your travel provider might also be covered. Reimbursements either take the form of cash refunds or rescheduled trips for a later date.

2. Travel Medical Cover
This type of policy provides medical coverage at a basic level. It is usually applied for shorter periods of travel and covers accidents or injuries sustained during travel. Most of the time, your medical coverage is only applicable to the nearest medical facility in your destination; if, for example, you wish to receive healthcare services at a location outside of your covered area, you may be responsible for the costs.

3. Travel Major Medical
This is a more in-depth version of travel medical insurance coverage. It covers longer periods of time, making it ideal for people like student travelers or missionaries, who often live internationally for months at a time. Many of the medical benefits provided under travel major medical insurance are similar in scope to the medical benefits of traditional domestic plans. This type of insurance also usually covers evacuation to your country of origin for treatment options.

4. Emergency Medical Evacuation
For travelers in remote or less developed areas, emergency medical evacuation coverage is often a good choice. This insurance coverage ensures that you have access to transportation to get you to the appropriate medical facility. Although this type of coverage is often included in travel medical or travel major medical insurance, many travelers prefer to have a firm policy for medical emergencies that require more than local care.

5. Accidental Death/Flight Accident
This part of travel insurance is essentially a life insurance policy that pays out to the surviving beneficiaries of the traveler. It often includes coverage for serious injuries like dismemberment, as well.

Travel insurance is usually one of those subjects that people like to avoid. It implies that something will go wrong with a vacation—that you or your family will get hurt or sick, or that your hours of preparation will get cancelled in a matter of minutes. However, when you are traveling to a new place and spending thousands of dollars to have a good time, it is important to make sure that you are doing it with safety always in mind.