Jazz Essence

Insuring your travel may seem an expense but is actually an investment for the times you are in any kind of trouble in a foreign land. These policies are of many kinds and knowing them will help you decide which ones you may need. But before we share that, we would like to familiarize you with the basic terms of the policies.
Definition of the Basic Terms:
The maximum amount an insurer will pay you to cover expenses is called is called the Maximum Policy Cover. This maximum may apply to the complete trip or a single occurrence of an accident or an illness during your travel. The amount that you will need to pay, in case of accident or illness, before you can claim, is called the Deductible or Excess. Again this may apply for all the trips in a year, for the duration of a specific trip or for a particular instance of an accident or an illness. There is a portion that you may be expected to pay even after the deductible and this is called the Co-insurance or Co-pay. It is a percentage of the total expense, post deductible that you will have to bear. So, if your maximum policy cover is $1,000, your deductible is $50 and your co-pay is 20/80, what does it mean? It means that the insurer will not pay more than $1,000 but before he starts paying, you will have to pay at least $50. Any expense after $50 will have to be paid in 20-80 ratio that is 20% by you and 80% by the insurer, subject to the upper limit of $1,000. Even after all the cover, there are some medical expenses that your insurer will not pay and these are clubbed under Exclusions. Some examples are expenses due to illegal use of drugs or due to heavy drinking or due to pre-existing conditions or due to participation in high-risk activities like scuba-diving.

Different Types of Travel Insurance:
1. Flight Accident Insurance: Covers death or injury during an air accident. May not cover other medical or accidental expenses
2.T ravel Protection Plan or Trip Cancellation Insurance: Often provided by travel agencies. Covers cost of change in travel plan due to accident or illness etc. May provide travel assistance services, loss or damaged baggage and limited medical coverage with or without deductibles and co-pay option.
3. International Medical Insurance: Covers medical expenses while traveling or living in a foreign country. May be short or long term. Often large enough to cover main medical expenses like emergency surgery or extended stay. Subject to specified deductibles and co-insurance. May include cover for reunion, repatriation benefits and emergency evacuation as well as other travel related assistance services. It can be bought for a single trip or to cover multiple trips in a particular span of time and can also be renewable for frequent travelers or expats.