To Insure or Not to Insure…
Here’s a good assessment of what you should take into account when making a decision about travel insurance and insurance in general. You don’t always need the most comprehensive policy. You may be covered by another policy such as your life insurance, health insurance, or homeowners.
Students and travelers under 35 years of age may find their travel insurance costs are much lower than for Gen X, Boomers. It will be much much cheaper than insuring grandma’s trip! The costs to student who can’t go on a trip due to a family emergency much bigger hit to a typical student budget. Most tours and flights are nonrefundable especially when you get within 30 days of the trip! A student’s travel protection plan may only run $50-125 for a 30-45 day trip. Much better than Mr. Martin talks about below. And these plans almost never have a deductible. So good advice below, but ask the right questions and choose what’s best for you.
A few points from Ray Martin in this CBS piece:
“When buying insurance of any kind, I advise people to keep these four rules in mind:
1. Cover Only Big Risks: Buy insurance only to protect you against risks that would be financially devastating.
2. Don’t Over-Insure: buy the right type and right amount of coverage, never buy too much, and don’t buy insurance for limited risks, such as a specific disease or to cover a single loan.
3. Cancel Coverage You Don’t Need: Buy insurance when you need it – and cancel it when it’s no longer needed.
4. Keep Emotions Out: Never make a decision to buy insurance solely for emotional reasons.
It is advised to consider additional travel medical insurance to cover medical mishaps, particularly when engaging in certain activities such as skiing, rock climbing and scuba diving abroad. This is because if you need emergency medical attention and evacuation, these costs may not be covered by your existing insurance. First, check with your existing health insurance plan and ask what is covered. You should do this before any trip abroad. If your plan does not cover certain items, then this coverage may be a good idea, particularly if you intend to engage in high-risk activities. Travel medical insurance which covers doctor bills overseas or a medical evacuation, can cost from $25 for a few days of coverage to annual policies for over $2,000.”
Please share your experiences…good or bad with travel insurance.
