So, you are going on vacation. Or, maybe business takes you out of the country for a few days. You have packed your bags, checked your itinerary, and off you go. But wait! Did you purchase Travel Insurance?

There are various "types" of travel insurance. I am not talking about baggage insurance, or trip cancellation insurance, I am talking about what could happen if something happened to you. Although the other items are "important" as there is a financial interest at stake if something happened to your stuff, or your vacation, but what if something happened to you? Have you ever thought how much that would cost? One thing I can guarantee, it would cost more than the replacement cost of your belongings.

Travel Insurance is unlike Life Insurance. Life Insurance pays a defined amount in the event of death provided the contract with the insurer is in force and the premiums are paid. Travel Insurance policies will have Limitations and Exclusions which define when an Insurance company won't pay. I won't get into too much of a detailed discussion, but if you go to our website, you can get more information on this topic.

So, what should you look for in a travel insurance policy?

1) Is there a pre existing condition clause?

If you have been to the doctor in the past 6 months, and received consultation or advice on a health issue, than that health issue may not be covered. Some companies will medically underwrite your program in advance, so even if you do have a condition, if it is medically approved in advance, it would be covered. Be cautious.

2) How long can you be away?

Policies can be purchased for the length of your trip. However, if some unforeseen event happens while you are away, which causes you to be at your destination longer than originally planned, then your coverage may run out. Policies can be purchased for up to 30 days, 60 days, or 180 days.
If you travel regularly, you can buy coverage that allows you to come and go as often as you would like, some, up to 60 days at a time.

3) Are you the adventurous type?

Some people I know have the ability to put on a backpack, buy a one way ticket and not be quite sure when they are coming home. Some travel policies have a watch list. Countries that are deemed to be at war or have a threat level may be on a list of areas that are not covered. If you like to participate in high risk adventures, like bungee jumping, or scuba diving, you may not be covered.

4) What if I die when I am travelling, what happens?

Most policies will have some type of repatriation benefit. In simple terms, an amount of money will be made available to fly your body home.

5) What happens if I am seriously hurt?

I know from experience, people who have had heart attacks, or motor vehicle accidents, where they were seriously injured. In some cases, they had to be flown back to their country of residence by air ambulance. The cost, let's just say at a conservative estimate of several hundred thousand dollars. That is the cost of an average home.
So, if you are planning to go away, whether it be just across the border shopping, or taking that dream vacation, do yourself a favour, and purchase Travel Insurance. It will probably be the least expensive item on your trip. Without it, it could be the most expensive trip you ever take.

For more information on this, life insurance, or any other type of personal benefit, feel free to visit our website at www.thebenefitguys.ca.

Have a safe trip.

Jordan Kovats, B.Sc.
Co Founder, The Benefit Guys

Author's Bio: 

Jordan Kovats is a Co-Founder of The Benefit Guys.