What is travel insurance? And why is it important.

There are numerous investment avenues in the market which offer satisfactory returns, but insurance, on the other hand, is an investment tool which offers financial security instead of returns to the investor. When a person purchases an insurance policy of a specific type, the insurance company is liable to provide compensation to the insurance holder or nominees for the loss or damage of insured commodity.

Among the various types of insurance in the market, travel insurance plays a vital role for anyone who travels a lot. It offers protection to the insured and provides monetary compensation in case of a mishap. Earlier, travel insurance had to be purchased from specific insurance companies, but now it is even offered by travel companies and agents. Travel insurance comes in three types, i.e.Medical insurance, Luggage protection and Trip protection.

  • Medical Insurance: Imagine you are hiking through a rainforest and you get bit by a snake. The effects could be severe and might need immediate medical attention.In foreign countries, medical care can cost a lot and might as well affect your trip budget. Here is where medical insurance comes into play. A medical insurance covers all the medical expenses, andsome companies’ even offer the perk of medical emergency evacuation coverage. Before buying medicalinsurance while travelling in India,one must keep medical inflationin mind.
  • Luggage protection:Most of the time people have a lot of things packed in their bags, which includes things that are really valuable. According to a survey, 60 percent of the people lose or misplace their luggage at the airport or at other public transport. Luggage protection offers coverage and provides compensation in case of loss of baggage. There are only handful companies who provide luggage insurance.
  • Trip protection:There are times when people cancel their trip at the last minute due to some unforeseen circumstances. Many people lose a substantial amount of money, due to the trip cancellationcharges levied by the companies. Tripprotection saves you from such deductions and even pays compensation for other charges.

Travel insurance is a must when going out on a trip. However,it is necessary that you consult the insurance provider for information about the cost of insurance and sum assured which will be paid to the nominees.

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