Weighing the Importance of Travel Insurance
Is travel insurance important? That’s a good question. We all know it holds value, but does the value offset the cost? To dive into this topic, let’s examine two similar families who coincidentally are taking the same tropical vacation at the same time.
One: The Pinchers Family
Penny and her husband Bill have two children ages 10 and 14.
Penny and Bill are excited to take a family vacation to a tropical paradise. However, budget is a concern. So, to save money, they do not purchase travel insurance.
Two: The Smart Family
Bea and her husband Mo have two children, ages 10 and 14.
Bea and Mo are enthusiastic about their upcoming family vacation. Even though it feels like an extra expense, they decide to purchase travel insurance coverage.
The Pinchers and the Smarts are traveling on the same flight to the same destination at the same time. The only difference is The Smarts have travel insurance coverage while the Pinchers do not. Let’s see what happens.
Day 1
The flight to their destination is fairly uneventful. The plane lands. The passengers disembark and both families Uber to the hotel. That’s when things start to unravel.
It turns out, just hours earlier, a fire broke out at the hotel. It wasn’t a total loss, but both families’ rooms are now unavailable. To make matters worse, they read the fine print on the hotel policy and find out their pre-paid room costs are non-refundable.
Both families start making phone calls. Even though travel insurance doesn’t cover the hotel’s failure to deliver, the Smarts have peace of mind in knowing that if other things go wrong, they are covered. To that end, they feel comfortable spending on an equally luxurious hotel. Once back home, they’ll work with the original hotel to get reimbursed.
The Pinchers however are worrying about things like this adding up. What if somebody falls sick? What if somebody gets COVID-19 and has to quarantine? What if somebody gets injured? Because of these worries, the Pinchers opt to go the cheap route to conserve as much of their vacation fund as possible. They make call after call to find a room and eventually book lodging at a cheap motel on the edge of town.
Day 2
The next day, the Smarts go snorkeling. It’s a lot of fun even though Mo does get a minor cut on his toe from a sharp piece of coral. No worries though, just to be safe, they get it looked at by a doctor at the local clinic. The doctor disinfects the scratch and Mo has peace of mind knowing it won’t hamper their vacation fun. Plus, their travel insurance provides coverage for medical, so no stress there.
While the Smarts are enjoying their day, the Pinchers aren’t having the best of luck. They had to cancel their snorkeling plans because they’d all come down with food poisoning. Apparently, room service at their ultra-budget motel has lax food-safety standards. They’re so sick, but decide not to seek medical assistance because they know it might be pricey and don’t think they can afford such treatment. They wait out the day in their room and hope for the best.
Day 3
The Pinchers are still too ill to do much of anything. They remain in their room and hope the many cockroaches in their cheap room don’t carry them off. By the evening, they seek medical attention for their illness and pay out of pocket. It wasn’t cheap, but at least they’ll live.
It’s a different story for the Smarts though. They enjoy a day at the beach followed by a guided jungle tour and get to take selfies with monkeys. They spend the evening watching a beautiful sunset.
Day 4
A knock on the door comes early for both the Smarts and the Pinchers. The hotel staff informs them that unfortunately, due to a sudden political shift, it’s no longer safe for foreign vacationers. The Smarts immediately get flights home. Fortunately, their travel insurance includes Non-Medical Evacuation coverage so getting costly last-minute flights is no big deal.
The Pinchers have a much harder time. Despite the pricey medication they’ve been taking, they’re still pretty weak. They manage to get to the airport, but because of their medical expenses, they don’t have enough money left to get flights rescheduled. Fears rise as they wonder what will become of them if they can’t get out of the country in time. Luckily, Penny’s penny-pinching father wires them the money out of his retirement account. He might have to cut back on his standard of living, but at least his daughter, son-in-law, and grandchildren will be safe.
Okay, okay…
This vacation sounds like a bit of a fiasco, almost unbelievable – maybe even made up. Well, you’re right. This is just fiction, but it illustrates a very real point about the importance of travel insurance. Hopefully, it’s never needed. However, when things go wrong, it’s worth the cost. Even if it’s not used, travel insurance provides travelers with peace of mind in knowing that they have a hedge against the financial risks surrounding travel.
More on the Importance of Travel Insurance
Travel insurance provides an effective hedge against the financial risk associated with traveling. The trick is getting adequate coverage based on your needs and budget. Solutions exist for almost any travel situation, even in cases similar to what happened to the Pinchers and the Smarts. There are even Coronavirus-friendly plans, Cancel For Any Reason, and Interrupt For Any Reason policies.
Coronavirus-Friendly Plans
All travelers should consider purchasing Coronavirus-friendly travel insurance. This type of protection can provide a way to hedge against financial risks related to travel in a post-pandemic world. Coverage may include costs connected with travel delays, emergency medical and evacuation, trip cancelation and interruption, and the like. Despite these uncertain times, you can schedule trips with confidence because of the financial protection available through these plans.
Cancel For Any Reason Policies
An important point to consider is the option to purchase a Cancel For Any Reason insurance policy. This is one of the most effective options for protecting your travel investment.
Three Points Concerning Cancel For Any Reason Eligibility
The policy must be purchased within 21 days of your very first trip payment or deposit. If you go beyond that timeframe, then Cancel For Any Reason insurance policies are not an option.
You must insure the full, pre-paid, non-refundable cost of the trip.
If you do cancel for any reason not covered under the standard trip cancellation provisions of the policy, you must do so 48 hours or more before departure. Therefore, time is of the essence in procuring this type of coverage.
Final Thoughts
When it comes to purchasing travel insurance, there are so many options. Which option is the best for you? How much money should you spend on premiums? To get answers to these, and other pressing questions, start by working with knowledgeable travel insurance agents. A good agent works with your best interest in mind. A knowledgeable agent will do all the necessary research on your behalf to find a plan that offers the most suitable protection for your budget.
The Moral of This Story?
Don’t end up like the Pinchers. Be like the Smart family. Protect your travel with sufficient travel insurance coverage. That way, if anything does go wrong, you’re covered.
Check us out for a free no obligation quote.
