So you've got your much-awaited barkada trip or honeymoon all planned — flights booked, hotel rooms reserved and rental cars rented. You've even chosen the perfect travel insurance provider! Then they hand you the "fine print." Your eyes glaze over: AD&D, deductible, premium, UCR... Say what? Yep, we've all been there. It's like poring through one of your more difficult college readings, but worse. Your life savings could possibly depend on this piece of paper! Well, don't you worry. GoBear picked some of the most headache-inducing travel insurance terms and lays it all out for you.
1. Accidental Death & Dismemberment, or AD&D
An accident that takes place on a trip that results in death or loss of body parts.
GoBear explains: DEATH. DISMEMBERMENT. Basically the worst-case scenario not just for travel, but for your entire life in general. If there's one thing you need protection from, it's definitely this.
2. Baggage and Personal Effects Coverage
Travel insurance covers a policy holder’s baggage, passport, credit cards, and personal effects.
GoBear explains: The world is a beautiful place, but it's also riddled with thieves who like to take advantage of unsuspecting tourists. This coverage protects your most important travel documents.
3. Baggage Delay
Having your baggage redirected to a different location or it arrives late to your destination.
Gobear explains: If, upon setting foot in Maldives, you find that your pretty pink stroller chose to go to Malibu instead, make sure your policy covers your stroller's insolence.
4. Coverage Period
The length of time that you are traveling and your travel insurance plan can cover you.
GoBear explains: #Hugot alert! nothing is forever, and all good things must come to an end. Travel insurance plans can only protect you for as long as your agent or your travel period allows.
The amount a policyholder is required to pay before the insurance provider starts making payment. It can be a yearly amount, an amount based on the duration of the policy, or the amount based on the incident.
GoBear explains: This is really you protecting yourself. The insurance provider asks for an amount that it could take out from your claims, so they can pay less if an incident occurs. Smart.
6. Emergency Evacuation
Travel insurance coverage that provides medical evacuation of a policyholder to a medical facility or their own country.
GoBear explains: Some accidents are so bad, you can't just hop on a rebooked flight and go home. When your medical situation needs some kind of special transport, this policy will come in handy.
Expenses the insurance provider will not cover, and they usually include expenses that result from participation in high-risk sports or recreational activities.
GoBear explains: Not even the most perfect travel insurance plan can protect a foolhardy person. Really not surprising that no coverage exists for "Lost hand after petting a tiger during a safari."
8. Flight Accident Coverage
Available for worldwide travel insurance coverage for an accidental loss that occurs while traveling by air.
GoBear explains: Air travel is one of the most discombobulating undertakings known to man. Don't be surprised if you lose something during a flight, but take it a step further — be prepared! I mean, let's take our cue from discombobulating — so hard to say, we don't want to say it.
9. Hazardous Sports and Activities Coverage
Refers to coverage of medical expenses incurred to treat a policyholder who becomes injured because of participation in hazardous sports and activities, such as: sky diving, scuba diving, or rock climbing
GoBear explains: For the foolhardy person who just lives for the thrill: fork over the extra moolah for a travel insurance plan that will cover accidents as a result of your exploits. YOLO done just right. We support you to the end!
10. Maximum Policy Coverage
Refers to the maximum global travel insurance compensation that will be paid for expenses covered by a policy.
GoBear explains: Sadly, travel insurance companies are not limitless wells of money. Let's hope your situation doesn't require oodles of money even your travel insurance cannot afford.
11. Medical Expense Coverage
An unexpected medical emergency that may occur while traveling and requires visiting a doctor or a hospital.
GoBear explains: Not all healthcare laws are made equal — some countries offer more ridiculously expensive healthcare than others. Save yourself the headache and the budget-ache!
12. Missed Connection Coverage
Provides reimbursement for flight change fees or additional transportation costs required to meet a cruise or tour in the event of a missed flight connection due to accident or bad weather.
GoBear explains: Yes, having to pay exorbitant rebooking fees is just as heartbreaking as realizing that last guy you dated was "the one that got away." Not quite as romantic, though.
13. Non-Refundable Travel Expenses
These are expenses paid for a trip that cannot be reimbursed, and they include accommodation deposits and airline tickets.
GoBear explains: Travel expenses you can never claim, amid foreseen begging and sobbing in the process, from the insurance company. It's like when you spill milk, and you can't put everything back in the carton.
14. Pre-Existing Conditions
Refers to medical conditions of policyholders that existed before the insurance policies were purchased. Usually, domestic travel insurance providers will only provide minimal or no coverage for expenses related to such conditions.
GoBear explains: Before going off to a place with lots of delicious, artery-clogging local cuisine, know that most travel insurance policy providers will consider that you're probably aware you have hypertension.
The amount paid to purchase a travel insurance plan. The payment can be made in advance, once every month or year, or before every trip.
GoBear explains: The cost of preparedness! Of course, you can always just use the money for more high-end digs, but if you know exactly what you're getting in return, this is money well-spent.
16. Rental Car Insurance / Renter's Collision Insurance
Covers theft or damage of a car rented by a policyholder during their trip. It also covers the damage and injury sustained by other people if the policyholder causes an accident.
GoBear explains: Road trips are so much fun! Touring the countryside, wind blowing in your hair... But using a rental is no excuse to get reckless — which you are being if you don't get this coverage in your plan.
17. Repatriation Benefit
Refers to the coverage of expenses for preparing and sending the deceased person’s body to their own country.
GoBear explains: Still for that one thing we would never wish to happen to anyone. If one is already saddled with grief, technicalities like these can send anyone over the edge.
18. Travel Supplier Bankruptcy or Default
Refers to coverage of expenses incurred when a travel supplier goes bankrupt or defaults from providing travel services.
GoBear explains: Although this is still a form of protection, it's also why you should always go for the more reliable travel insurance companies, with a proven track record and sound business history.
19. Trip Interruption Insurance
Provides coverage for policyholders who interrupt or cancel their trips because of acceptable reasons such as injury, illness, death of a relative or a flight problem, which are out of their control.
GoBear explains: No matter how much painstaking planning and scheduling you do, there's always that one thing that could go wrong. Luckily you can choose not to let that get you down.
20. Usual, Customary and Reasonable Charges, or UCR Charges
Average amounts charged by travel insurance providers for certain services, treatments, or procedures in the same locality.
GoBear explains: In Bangkok, for example, if all doctors charge the same for fixing a broken bone (keep all your limbs inside the tuktuks!), this is the amount your policy provider will refer to.
Kidding aside, getting an insurance is no joke, and it's not enough that you buy one — you also need to know the exceptions and inclusions in the fine print. Gobear can compare travel insurance policies and prices with ease and for free!
More insurance for dummies? Here ya go!