Three Popular Types of Travel Insurance

November 21, 2022

A Breakdown of Three Types of Travel Insurance Plans

Travel insurance comes in a number of shapes and sizes. Every policy is unique, as large financial institutions act as underwriters for travel insurance policies, assuming the risks that come with a traveler needing to be reimbursed for their benefits claims. Many insurance providers offer different “tiers” of their product, with some policies providing very minimal coverage while others offer millions of dollars. Some insurance policies also include access to travel assistance products that are paired directly with their policy. Truly, there is a product for anyone, marketed towards travelers with different needs and wants.

Some travel insurance providers quantify their policies by offering millions of dollars of coverage for qualifying incidents, while others only provide a very basic means of reimbursing the costs of an unexpected injury, or medical or dental procedure that is required during travel. In return for offering benefits to travelers, travel insurance providers will request that their customers agree to the terms and conditions of their policies. This is where insurance providers include their limitations and exclusions related to their policies. Otherwise known as the “fine print,” customers often fail to read any of these details, leaving them to find out later that their coverage will not live up to their expectations.

Three Travel Insurance Types

These are three types of travel insurance policies available to North Americans.

1) Traditional Travel Insurance

Traditional travel insurance offers a baseline of coverage for travelers that experience emergencies or mishaps during their trip. Those that purchase this should expect that it will cover things like lost luggage, unexpected delays, and medical emergencies up to a certain dollar amount. These policies can vary and have a number of different limitations that can void a traveler’s coverage entirely. Further, almost all traditional travel insurance products are available on a reimbursement basis, meaning that customers will have to first pay out of pocket and then navigate the claims process. These claims processes can sometimes be complex and confusing and take several months.

2) Premium Travel Insurance

Premium insurance is much like traditional travel insurance but with an added level of coverage for an increased cost. Many premium travel insurance products have increased dollar amounts in regard to their coverage, some with multi-million-dollar policies that reimburse customers for the expenses of medical emergencies, lost luggage, and delayed or canceled trips.

Other premium travel insurance policies also offer added benefits that speak directly to the needs of customers over the age of 65 or who have a pre-existing medical condition. Customers who are curious about premium travel insurance products can also pay extra for what is known as a “cancel for any reason” policy, which allows customers to claim benefits for a canceled trip for any reason at all. Most traditional travel insurance products only reimburse customers when their trip is delayed by a qualifying incident and not if the traveler is fearful or has changed their mind about the risks associated with their trip.

3) Travel Insurance That Includes Travel Assistance

Some travel insurance providers work directly alongside companies such as FocusPoint International, which provide travel assistance. Travel assistance is the perfect complement to any existing travel insurance policy, and some clients might find that travel assistance is also available to them from the same service provider. Those who purchase travel assistance have access to air ambulance and emergency relocation services that would otherwise cost hundreds of thousands of dollars. Instead, those who buy travel insurance and travel assistance can find peace of mind knowing that if they need air ambulance services, they will be provided with a fully-funded product with no claims process.

Travel Insurance Versus Travel Assistance

Travel insurance is not travel assistance but instead is a product intended to address some of the gaps in coverage found in traditional travel insurance policies. Most travel assistance policies cover the costs of emergency relocation or air ambulance services. When a traveler requires these emergency services while traveling, they can often be incredibly expensive, putting the customer into long-term debt.

Travel assistance providers charge their customers a small affordable fee for such services without the claims or reimbursement process typically found in travel insurance.

Travel Assistance: Find Peace of Mind Alongside CAP

Travel assistance is also available to customers as a stand-alone product. CAP can help vacationers avoid the unpleasant costs of air ambulance and emergency relocation services that are often never included with travel insurance policies.

FocusPoint International’s CAP Travel Medical and Security Assistance Plan comes with a robust CAP Advantage app that includes destination-based health, safety and security intelligence, COVID-19-specific information, a one-touch assistance button, and much more.

The CAP Plan offers unlimited 24/7 advice for a long list of travel mishaps often overlooked by traditional travel insurance, including COVID quarantine cost coverage. It also provides a fully-funded response to incidents of riots, strikes, civil commotion, and natural disasters, with medical evacuation to a home hospital of choice, should you suffer from a medical mishap resulting in hospitalization.

Contact us directly to learn more about available offerings for North American travelers.