Tourism is growing at a rapid pace across the globe. On the other hand, safety concerns are also growing at an equally rapid pace. Today, travel insurance is not so much of a luxury as it is a necessity. This is the best way to ensure peace of mind while you are away from home, while ensuring just the right support if the worst was to occur. In fact, it is predicted that the global travel insurance market will be worth $28,264 million by 2022, growing at a CAGR of 8.5% during the period 2016-2022, according to the Travel Insurance Market Report, published by Allied Market Research.
In India, the demand for this type of insurance policy has significantly increased in recent years. However, there are certain myths that are still coming in the way of people investing in a good policy when traveling overseas. Here are some common myths and the truth behind them.
Myth 1: This insurance offers only health coverage
It is believed that a travel policy provides cover against medical emergencies, such as sickness or accidents in a foreign land. However, a comprehensive policy also covers non-medical travel-related contingencies, including trip cancellation, curtailment & interruption, loss of tickets & passport, loss/delay of baggage, and more. Some travel policies also offer the opportunity to customize coverage, based on your specific needs.
Myth 2: It is too expensive
These policies are designed to cover for financial losses that the traveller might incur, either domestically or internationally, due to an unexpected or unforeseen situation. The cost of the policy will largely depend on the length of the trip, destination and personal preferences. On an average, the premium is about 4%-5% of the total trip cost.
Myth 3: It is meant for senior citizens
It is quite a popular misconception that only the elderly will find use for such insurance, since they are at higher risk of falling ill or needing medical assistance. The fact, however, is that the unexpected to occur to anyone, from the airline misplacing your baggage to a sudden need to cut the trip short due to an emergency at home.
Myth 4: The policy should be bought earlier
There is no preferred time for buying the policy. You can buy it 3 weeks before your departure or 10 minutes prior to your flight. However, do not make the mistake of delaying the purchase any further. Buying the policy after your trip has started will prevent you from accessing certain benefits.
If you are still wary of getting travel insurance because of the time it will take, you should know that it doesn’t take more than a few minutes online.