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Travel Insurance vs Health Insurance: What’s the Difference?

Team AckoSept 24, 2025

When it comes to travelling, most of us focus on visas, tickets, hotels, and sightseeing plans. But very few pause to think about what would happen if things go wrong during the trip. A sudden illness, lost baggage, or an unexpected hospital visit in a foreign country can cost a fortune. This is where insurance steps in.

Many people get confused between travel insurance and health insurance. While both provide financial protection, they are designed for very different situations. Understanding the difference is vital so that you can choose the right cover for your needs.

Contents

What is Travel Insurance?
What is Health Insurance?
Key Differences Between Travel Insurance and Health Insurance
Which One Do You Need?
Final Thoughts
Frequently Asked Questions

What is Travel Insurance?

Travel insurance is designed to protect you during your trip. It covers travel-related problems. For example:

Flight cancellations or delays
Lost or delayed baggage
Stolen passports or wallets
Emergency medical expenses abroad
Trip interruptions due to unforeseen events

Think of it as a safety shield for your journey. If something goes wrong while you’re travelling, travel insurance steps in to reduce your financial burden.

What is Health Insurance?

Health insurance, on the other hand, is designed only for medical needs. It covers hospitalisation, surgeries, treatments, and medicines when you fall ill or meet with an accident.

In India, most people already have a health insurance policy that covers medical expenses within the country. However, if you move abroad for work, studies, or a long-term stay, you may need international health insurance to cover your healthcare expenses in that country.

Key Differences Between Travel Insurance and Health Insurance

Here’s a comparison of international travel insurance and health insurance.

Feature	Travel Insurance	Health Insurance
Purpose	Covers travel-related risks + emergency medical costs during a trip	Covers medical expenses due to illness, injury, or hospitalisation
Duration	Short-term (valid only for the trip duration)	Long-term (usually yearly or multi-year policies)
Coverage Area	Valid in the country/countries you are travelling to	Usually valid within your home country; international health insurance is location-specific
Medical Coverage	Only emergency medical treatment during the trip	Full medical coverage, including ongoing and planned treatments
Other Benefits	Flight delays, baggage loss, trip cancellation, theft, etc.	No travel-related coverage – only health-related
Best For	Short-term travellers (holiday, business trip, family visit)	Residents, expatriates, or students staying abroad long-term

Which One Do You Need?

If you’re going on a short international holiday or business trip, travel insurance is the right choice. It’s affordable, provides emergency medical cover and medical evacuation, and also protects against trip disruptions.

If you’re relocating abroad for work, studies, or a long-term stay, health insurance makes more sense because you’ll need access to regular medical care, not just emergency cover.

In many countries, like those in the Schengen area of Europe, travel insurance is mandatory when applying for a visa. Similarly, many universities abroad require students to have valid health insurance before starting their course.

Final Thoughts

Travel insurance and health insurance are not interchangeable. They complement different stages of your journey. Travel insurance acts like a safety net for unexpected problems during short trips, while health insurance is a long-term shield for your medical needs if you’re staying abroad.

The smart approach is to match your insurance with your purpose of travel. A quick holiday or business visit calls for travel insurance, while studying, working, or relocating overseas makes health insurance essential.

Making the right choice now helps you avoid stress, unexpected costs, and unwanted hassles later, so you can fully enjoy your travels with peace of mind.

Frequently Asked Questions

Can my regular Indian health insurance cover me abroad?

Most Indian health insurance policies cover you only within India. You need separate travel insurance or international health insurance for international trips.

Do I need travel insurance for domestic trips within India?

It’s optional for domestic travel. However, it’s highly recommended for international trips, and often mandatory for visas.

What kind of medical issues does travel insurance cover?

Travel insurance usually covers sudden illnesses, accidents, or hospitalisation during your trip. It does not cover planned treatments or pre-existing conditions unless specified.

Who should buy international health insurance?

Students, expatriates, or professionals relocating abroad for months or years should opt for international health insurance.

Is travel insurance expensive?

No, it is not. Travel insurance is relatively cheap compared to the overall cost of an international trip. It can save you lakhs in case of a medical emergency abroad.

Can I buy both travel and health insurance?

Yes. In fact, many people do. If you already have long-term health insurance, you can still buy travel insurance for extra protection during short trips abroad.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet, and is subject to changes. Please check the policy document for cancellation reasons, and terms and conditions of the policy.