As with many unfamiliar situations, the prospect of purchasing travel insurance can be intimidating for some. Learning what the terms of the insurance contract means, before buying the policy, can help ease the burden of deciding what to buy in terms of the travel insurance.

TRAVEL INSURANCE TERMS:

- ANNUAL TRIP: Benefits of the policy applies to all trips taken within the specified year.

- BAGGAGE & PERSONAL EFFECTS: Airlines have a maximum amount they will pay in the event your baggage is lost, stolen or delayed. This refund can sometimes take several months. Insurance will reimburse you for any short-fall of payment by the airline. The insurance also covers personal item like passports and visas.

- FLIGHT ACCIDENT: The insurance will pay you (or your estate in the event of your death) for the lost of life, or injury during flight.

- MEDIAL EXPENSE: In the event that you require medical treatment in a jurisdiction not covered by your regular medical insurance. This includes prescriptions and hospitalization.

- REPATRIATION OF REMAINS: Covers the cost of having your remains returns to your home country in the event of your death while traveling.

- SINGLE TRIP: Benefits of the policy applies to one trip only.

- THIRD PARTY LIABILITY: Will pay for expenses if you cause injury to another person. This also covers legal expenses.

- TRAVEL ACCIDENT: Insurance will pay you (or your estate in the event of your death) for the lost of life, or injury while on the trip.

- TRIP CANCELLATION: The insurance provider will reimburse you for the lost of the non-refundable expenses in the event you have to cancel your trip.

- TRIP INTERRUPTION: The insurance provider will reimburse you for the lost of money if you have to return home sooner or later then the scheduled returned date. Also includes other expenses you may incur such as accommodation, transportation, meals.

Before you sign on the dotted line read the contract very carefully. Ask the insurance agent to clarify any terms or clauses that are not clear to you. Insurance companies survive by repeat business, so the agents are eager to accommodate you as best they can. Therefore, don't be afraid to ask for additions and deletions to the policy that you are not totally satisfied with. In most cases the agent will be able to design the policy to meet your specific needs.

Learn more about this author, M. R. Hill.
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