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Travel insurance protects the policyholder for loss arising because of unforeseen events during travel. Coverage, extent of coverage, destination clauses, pre-existing health conditions coverage are some factors one should check before buying one such cover.
Here are the top 5 things to be evaluated before buying a travel insurance policy:
1. What is actually covered and what is not: While all travel insurance policies may look similar on the face of it, the finer details of what is covered and what is not can make a huge difference. For example, medical coverage while travelling abroad is an important component.
2. Destination coverage: Travel insurance companies offer policies which may either have global coverage or have specific geographical coverage. Choosing a policy with global coverage is always safer, as there is no risk of rejection. However, there may be sub clauses and exceptions to this.
3. Duration of coverage: Policies can be either a single trip policy or an annual multi trip policy. The frequency of travel should determine the choice of the policy. Check how many consecutive days abroad will be covered under the policy.
4. Extent of coverage: In addition to the various heads which are covered in the policy, one must also check how much will be the coverage for each head. This means there will be a limit on the claims imposed, depending on what is being claimed.
5. Pre-existing health conditions: Insurers generally do not cover pre existing conditions of the policy holder. However, some companies offer coverage with certain caveats and conditions. Policy holders are required to declare the pre existing conditions while purchasing the policy.
Any insurance costs money and therefore purchasing travel insurance entails premium outflow. However, it is better to be safe than sorry, and travelling without adequate insurance is foolishness. It is important to compare the various options available, look up all the relevant features of the policies and select the one which is provides the most appropriate coverage.
by Smitha Hari
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