Travel Insurance or Medical Insurance – What Should You Buy?

The rising number of people traveling not just domestically but overseas has been attributed to rising salaries and spending capacity all over the world. It is predicted that in 2018, a large number of courtiers will see an increase in real wages, with Argentina leading with the highest increase of 7.3%, followed by India with an increase of 4.7%, according to data published by Statista.

No doubt, travel expenditure will also increase, including investments made towards good travel insurance. However, I have seen a lot of people getting confused between travel insurance and travel medical insurance when they are out to buy trip coverage. So, to resolve this dilemma, here’s a look at the features and benefits that differentiate the two types of insurance.

Travel Insurance

Travel insurance is a safety net designed to protect travellers for trips of limited duration. The benefits offered are categorized in two broad categories, one is to protect the traveller from financial losses due to some unexpected situation that might take place during the trip, which is called trip insurance, and the second is protection against health-related issues, which is called medical insurance.

Broadly, trip insurance usually covers for trip cancellation, loss of baggage, loss of personal belongings and emergency medical treatment. The not-so-good part about travel insurance is that the trip insurance only provides limited medical protection, such as emergency medical evacuation and repatriation. However, you can upgrade the medical coverage by paying extra.

Under trip insurance or trip cancellation insurance coverage, the traveller will be financially protected of there are sudden and unexpected issues such as trip cancellation, trip delay, trip interruption, missed flight connection, baggage loss, rental car coverage, etc. However, the benefits can vary according to the plan.

You can find the best options for trip insurance of trip cancellation plans here.

Suitable for:

This plan is highly suitable for those travelling with family members, kids and seniors on expensive trips and have made payments in advance or are at high risk of trip cancellation. Travel insurance becomes a must if you are travelling to war zones or areas that are prone to natural disasters.

Travel Medical Insurance

In the US, medical emergencies can be the worst experience, given the cost of healthcare in the country.

Often called international medical insurance, international travel insurance, worldwide medical insurance by different companies, travel medical insurance plans or visitor medical insurance policies are specifically designed to protect travellers against unforeseen medical issues, such as sickness, injury or accident. Other than covering for medical treatment, these plans also cover the policyholder for expenses during medical evacuation, accidental death, repatriation and more, if needed.

The medical cover provided under travel insurance has some limitations. The intent of this medical cover is to cover the traveller for emergency medical treatment within the specific area of coverage. It will not cover for long term medical treatment. However, you’ll be covered to return home fit enough so that you can get yourself treated in your home country.

Suitable For:

If you are a senior with health issues or someone travelling to a land where exposure to health issues could be high, buying travel medical insurance becomes non-negotiable.

Click this link to find the top-rated health insurance plans from leading US insurance companies for your next US trip.

If you got questions, please ask in comments.