The rationale behind getting travel insurance is to remain protected from the financial losses that might occur before or during the trip. From loss of baggage to flight cancellations, a number of situations can potentially derail your trip.
To begin with, you would want a precise and prudent estimation regarding your needs. The coverage amount should be arrived at, through a pragmatic and comprehensive evaluation of your needs so that you don’t pay more than necessary. To help you make a balanced decision regarding your travel insurance cover, here are a few questions you will need to ask yourself before zeroing on any figure:
Where are you going?If you are going on an overseas trip, the cost of coverage would be far higher than domestic travel. On an overseas trip, if you plan to visit remote areas or intend to do adventure activities, you will need additional protection.
This is because any mishap in such areas, say a medical emergency, may involve emergency air evacuation and specialized services which are likely to be considerably more expensive.
Do you have a pre-existing medical condition?If you already have a pre-existing medical condition, it is important to take that into consideration. Accordingly, it’s essentially to opt for a travel insurance plan which covers ailments resulting due to pre-existing conditions.
However, note that this would raise your insurance coverage as well as the cost for the same i.e. the premium.
What is the cost of the trip?To figure out how much insurance you need, you will have to be as precise as possible in estimating the cost of the trip.
This estimate should essentially include the travel fare, hotel bookings and other pre-paid and/or nonrefundable charges like cruise charges, entry fee to the museums or monuments among others.
What kind of traveler are you?Your travel insurance amount or coverage will also depend on the type of traveler you are. If you are someone who travels light and don’t experiment much, you can go for just a basic plan that covers trip cancellation and medical emergency coverage.
On the other hand, if you are adventure lover, it’s prudent to opt for a higher coverage as you expose yourself to greater risks.
Answering the above questions will help you get an estimate of the coverage you need and make an informed choice.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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