Top Ten Need-To-Know Travel Insurance Terms

"Travel insurance like all insurance is complex," explains Jim Grace President and CEO of InsureMyTrip.com, "but a fundamental understanding of industry terms and phrases that commonly cause confusion, can clear up some of the mystery. At InsureMyTrip.com, one of our key goals is to help travelers understand travel insurance, and that means starting with the basics." These are the top ten travel insurance terms that every consumer should know as they prepare to purchase trip protection for their upcoming travels:


1. A.M. Best Ratings -- Industry watchdog A.M. Best rates and assesses insurance companies' financial strength and ability to meet their obligations to policyholders. InsureMyTrip.com features a user-friendly monitoring tool for consumers to check the A.M. Best Ratings of all the leading U.S. travel insurance companies before you purchase coverage.


2. Unforeseen -- means not anticipated or expected and occurring after the effective date of the policy.


3. Primary -- This section of the policy will pay FIRST, before any other collectible insurance.


4. Secondary -- This section of the policy will pay you after any other Primary collectible insurance has paid the claim and the Primary policies' limits have been exhausted.


5. First Trip Payment Date -- This is the date that money first exchanged hands for the trip you want to insure. This is the date the check is written, not the date it is cashed.


6. Pre-existing Medical Condition Waiver -- Many policies have a pre-existing medical exclusion, meaning that coverage is not available for pre-existing medical conditions. A Pre-existing Medical Condition Waiver essentially deletes that exclusion and extends your policy to cover pre-existing condition-related risks. To be eligible for a Pre-Existing Medical Condition Waiver, the majority of travel insurance policies require that you purchase your policy within 10 to 21 days of your first trip payment date and insure for the full amount of your non-refundable travel arrangements.


7. Look Back Period -- This is the number of days that the insurance company will 'look back' from the date the insurance was purchased to see if your claim is related to a pre-existing medical condition. The Look Back Period varies by company and plan and does not apply if you qualified for the Pre-existing Medical Condition Waiver offered by many plans.


8. Cancel For Any Reason --This is an optional benefit that empowers travelers to cancel trips for any reason including sudden unemployment, schedule conflicts, even bad weather, up to two days prior to departure. Cancel For Any Reason policies vary by company and must be purchased within 10-21 days of your first trip payment date.


9. Financial Default -- This is a benefit that is part of Trip Cancellation/Interruption coverage. This protection applies if the airline, cruise line, or tour operator goes out of business and you are unable to travel as a result or suffer financial loss. Since this coverage is time sensitive, you must purchase a policy within 10 - 21 days (varies by company) of your first trip payment date. All of the plans that contain this benefit have a 7-30 day waiting period from the time of purchase before becoming effective. Typically, if you purchase travel insurance directly through a travel supplier such as an airline, cruise line, or tour operator, you cannot protect yourself should that travel supplier go bankrupt or become financially insolvent, so it is always best to purchase your travel insurance protection from a third-party source.


10. Travel agent vs. Tour Operator -- A Travel Agent is someone who books flights, cruises and tours. A Tour Operator is a company which specializes in the organizing and operation of pre-planned vacations which are usually sold to the public through travel agents.

Travel 101: Travel insurance - should you consider it? Is it worth it?

You've booked your tropical vacation weeks, even months ahead. You've scheduled your vacation with your employer. You've booked your airfare and your hotel, or are about to do so.

Then, the "what-ifs" begin to creep in. What if you or a family member becomes ill or is in an accident prior to your trip? What if a hurricane or tropical storm threatens the location you've chosen to spend your one cherished week in an island paradise? What if you or your spouse loses a job before your travel date?

Is trip insurance the answer to to gaining peace of mind and safeguarding your travel plans? Perhaps, but how do you sort through the maze of travel insurance companies competing for your business?

After researching several of the major companies separately, I found a great site which includes Editor Reviews of companies based on reputation, selection, policy benefits, coverage levels, and website usability.

Go to Travel Insurance Review (www.travelinsurancereview.net/reviews) to read more detailed information about nine different companies they rate from "Excellent" to "Very Good" to "Good."

avel Insurance: When to Get, Skip

Travel guru Peter Greenberg appeared on "The Early Show" Monday, with some advice on when to get travel insurance and when to skip it, what you need and some scams to watch out for.

Greenberg explained there are four categories of travel insurance:

1. Flight insurance
2. Trip cancellation and interruption insurance
3. Medical insurance
4. Bad weather and infectious diseases

Q: Why do you need travel insurance?
A: 1. Your flight has been canceled. Or you got sick right before taking a cruise.
2. Your bags are lost and your medication is in them. You need to have an emergency prescription filled.
3. Your passport and wallet are stolen, and you need emergency cash and a replacement passport.
4. You're involved in an accident, and adequate medical treatment is not available.
5. You need medical evacuation.
6. Your cruise line, airline or tour operator goes bankrupt. You need to have your non-refundable expenses covered and to get to your destination.
7. A terrorist incident occurs in the city where you're planning to visit, and you want to cancel your trip.
8. A hurricane forces you to evacuate your resort, hotel or cruise ship.

Q: And these scenarios happen to thousands of people every day. Tell me about some of them?
A:
-A couple on an Alaskan cruise got off the ship when it pulled into Juneau. As they walked near the ship, they approached a person in a moose costume. Thinking it was a cute animal character out to greet cruise ship passengers, they asked to have a photo taken with the moose and were held up at gunpoint instead.
-Two friends were driving in a rental car through Hawaii. As they were enjoying the scenery, a huge wild pig suddenly ran in front of the car. The automobile was totaled.
-And of course there is always the seasonal story of the honeymooning couple on a Caribbean island, stranded by a hurricane that destroyed their hotel.

Q: So what kind of travel insurance do you need? What insurance should you avoid? How much does it cost? And just as important, where do you buy the insurance, and from whom? It makes a real difference.
A:
1. First, there's flight insurance. It pays your beneficiary if the plane crashes and you are killed or injured. This is perhaps the most useless insurance you can buy. The premiums are very high, and besides, you are already probably covered by life insurance or other benefit plans. So avoid it.

2. Trip cancellation and interruption insurance. This insurance becomes necessary depending on the amount you've invested in your trip. Buying a $59 ticket on southwest? Probably not. But a $4000 cruise. I'd recommend it. Depending on the policy, it covers you if your trip doesn't operate (the flight cancels, the cruise doesn't sail), or if you get sick before your departure, or during the trip. And some policies, for a higher premium, allow you to cancel for any reason.

3. Medical evacuation and repatriation insurance. I highly recommend this policy for anyone who travels. It's an annual premium -- between $250 and about $400, and believe me, it's the one card you need to carry and hope you never have to use, but if you do, it's more than worth it. (i have one). What this insurance covers is if you get sick or injured, the insurance pays to get you stabilized (treated) and then flown out.

But be careful: Not all policies are the same. Med Jet Assist, for example (and some others) is a great policy because it flies you out to the doctor and medical facility of your choice. This is a huge distinction with other med evac and repatriation policies, which may fly you to the doctor and medical facility of their choice, which means you're going to the lowest bidder. Not a good thing!

Q: What are the two primary reasons to purchase travel insurance?

A: Protecting your upfront financial investment with trip cancellation coverage, and protection for medical emergencies, lost baggage, travel delays and other "what ifs" that can occur while traveling.

Q: What are plans available?

A:
-Travel insurance companies, like Access America, will offer 24-hour global assistance for issues like lost bags, securing last-minute hotels if your plane is delayed/canceled, finding a local doctor, arranging an evacuation, dealing with lost documentation.

-"Comprehensive insurance" packages will generally include trip cancellation, as well as emergency medical and dental, emergency medical transportation, and travel delay coverage.

-Limited plans, like airline ticket protectors, usually only cost about 4 percent of the trip. More comprehensive coverage ranges 4 percent to 10 percent of trip cost, which varies depending on the benefits, coverage levels, trip cost and traveler's age.

-Travel insurance plans may also cover scenarios such as job loss, jury duty, carrier caused delays and work related reasons.

Q: What are some things you need to be careful of?

A: Read the fine print: Many policies do not cover "adventure travel," such as mountain climbing, bungee jumping and even snowboarding. An extra or alternative policy may be required.

-It's hurricane season, so consumers must purchase travel insurance before a hurricane is named by the national hurricane center. If your destination is hit by a hurricane when you get there, but the airport or resort is still operating, you may not be covered-even though your vacation is ruined.

-Many policies will not provide coverage for pre-existing medical conditions, unless the policy is purchased within 10 to 15 days after you book your travel.

-Other common exclusions include losses caused by acts of war, self-inflicted wounds and unlawful acts (including drunk driving).

-Car rental insurance is not really insurance, it's a waiver that releases you of liability should there be damage to a car. Know the difference between collision damage waiver and liability damage waiver, and check with your credit card or existing travel insurance policy to see what is covered.

Q: What is the difference between medical insurance and medical evacuation coverage?

A: Health insurance often does not apply when traveling abroad or in international waters. If you are seriously ill or injured, you may need to be evacuated to a medical facility that can provide the appropriate treatment. That can cost tens of thousands of dollars, which comes out of your pocket, unless you have travel insurance.

-This can especially be important if you are older, traveling on a cruise ship, or to any destination that does not have excellent medical capabilities.

-Traditional insurance guarantee payment to the transport providers and coordinates everything with your attending physician and its team of doctors and nurses.

-Medical evacuation companies like Medjet Assistance will not just evacuate you to the nearest facility, but will take you to the hospital of your choice -- even if that means repatriating you to your home hospital.

-Other companies like Medex and Oncall international offer similar protection, but read the fine print. Medex Safetrip ($56, based on one-week trip to Argentina) takes you from point of injury or hospital and evacuates you to the "nearest appropriate hospital" and the evacuation criteria is at the company's discretion. Medex Take Me Home ($178, same criteria) evacuates you from the initial treatment facility to the hospital of your choice closest to home or the nearest appropriate hospital, at the company's discretion. Oncall ($135, same criteria) takes you from the initial treatment facility to the hospital of your choice nearest home or the nearest appropriate hospital at the member's discretion. Medjet Assist ($215, same criteria) takes you from the hospital and accessible airstrip to the hospital of your choice at the member's discretion.