wealthfactsheet-general_insurance-travel

3. Travel Insurance.
Travel insurance is to indemnify an insured from the possible financial loss due to an accident, sickness or physical loss of belongings during the course of travel.

The main cause for concern is mostly the cost of medical fees if a person traveling to another country encountered an uneventful event such as a visit to a hospital due to either accidental or natural causes, medical fees may be exceptionally high in developed countries such as the United States, United Kingdom, Canada or Australia.

Therefore to make sure that a vacation to these named countries won't be a financial burden if something happens.

Another very important use for a travel insurance is the lost of baggage or belongings or even the damage of a camera or video recorder due to an accident. All these can be compensated in a travel insurance policy.

The costs of these kinds of insurance are usually determined by the number of days you intend to travel and also the geographical location of the place to be traveled.

Example, if you are located in Asia and you intend to travel somewhere in Asia or the United States. The cost of travel insurance for traveling to the United States is definitely higher than the cost of travel insurance in and around the Asia region.

Types of Travel Insurance:
1. Individual
It is for those who are traveling alone. Individuals usually pay a bit more, because the underwriting costs is more costly for individuals.

2. Family
For example, husband, wife and children goes on a trip together. This group can be considered a family package and costs for a family package is more competitive than an individual or when the whole family buys individual travel policies. Any how nobody buys individual policies as they provide no additional benefit as compared to a family package.

3. Corporate
A company can buy a corporate travel insurance plan for its executives who travel frequently. Of course they get corporate premium rates. This type of plans act almost like a group plan, except that it is usually insured for the entire year and renewals are made on an annual basis.

4. Group
For example, a school is organising an external trip to another country and the whole says number about one hundred. If individuals were to purchase their own, the costs would be high. Insurance company can offer a group package solely because the itinery are all the same and it is easier and cost effective for the insurance company to insure the whole group rather than individually.

Other types of Non-Life/General Insurance:
1. Motor Insurance
2. Fire Insurance
3. Travel Insurance
4. Contents Insurance
5. Property Insurance
6. Business Insurance
7. Liability Insurance
8. Marine Insurance
9. Others...