It is rightly said that the world is a book and those who do not travel only read one page. Travel is a great way to relax, rejuvenate, explore cultures and meet new people. In short, it is the perfect way to form great memories. But there are many unforeseen events that can crop up during travel and ruin your vacation.
Thankfully, travel insurance provides an easy and simple way to ensure that your travel brings you only joy and no woes. It protects you from all kinds of undesirable events. It could be emergency medical and accidental expenses, baggage damage or delay, loss of passport, flight delay or cancellation, etc. Some comprehensive plans also extend emergency cash support during the trip. Travel insurance guarantees that you have round-the-clock assistance in any part of the world.
It is important to understand how is the premium calculated for each travel insurance policy. Also, do not choose a foreign travel insurance policy just because it has the lowest premium. One needs to choose a policy which is apt for their needs.
Some of the factors that play a crucial role in determining the premium for a travel insurance policy are:
Amount of sum insured
This is the most important factor impacting any travel insurance premium calculator. Sum insured refers to the amount of money which is payable by the insurer to the policyholder on the happening of a specified event. Like any other insurance policy, there is a direct correlation between the sum insured and the premium amount. Higher the amount of sum insured, higher will be the amount of premium payable by the policyholder.
Places of visit
Your travel destination is another key factor in deciding the premium payable. Many travel insurance premium calculators ask if the place being visited is within USA and Canada, a Schengen country or others. Usually, the premium of a travel insurance policy for the USA, tends to be on the higher end. Also, if the country that you are traveling to is politically unstable or prone to communal or other violence, the premium for foreign travel insurance could be higher.
Type of Travel Insurance Policy
Travel insurance offers various kinds of travel insurance policies. Some examples are family cover policy, senior citizen policy, and student policy. If one is a frequent traveler to a particular destination, they can opt for a multi-trip policy. The premium amount varies basis the type of policy chosen by the applicant.
Age of the traveler
Young travelers will need to shell out lesser premium as compared to their older (and wiser) counterparts. This is due to a fact that with a higher age bracket, the probability of health-related issues and unforeseen medical expenses is more. This is the primary reason behind the relatively higher premiums for senior citizen travel insurance policies.
Health and fitness of the traveler
It is rightly said that health is wealth. A clean bill of health from a doctor will help you bring down the premium for your domestic or foreign travel insurance policy. People with pre-existing diseases need to pay a higher premium given their medical condition.
Duration of the trip
The trip duration also impacts the travel insurance premium calculator. Longer is your trip, more will be the premium.
There are some special add-on features that come with an additional premium amount. For instance, coverage for adventure sports, home insurance during travel, hijack distress allowance, etc.
Are travel plans frozen? Grab any travel insurance policies on offer. Stay protected and travel on!
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