The 2 Most Popular Types of Travel Insurance

When it comes to travel insurance, there are two types that most travelers opt for. In fact, one type of plan is so common that it represents over 94% of travel insurance sales. While there...

Travel Insurance Guide Part 3: Types of travel insurance

When it comes to travel insurance, there are two types that most travelers opt for. In fact, one type of plan is so common that it represents over 94% of travel insurance sales. While there are specialty plans available for unique needs, they are often too specialized for the majority of travelers on a vacation. Let's dive into the two basic types of travel insurance that cater to the needs of most travelers.

1. Vacation Plans

Provides the most coverage (including trip cancellation)

When people think of "travel insurance," they are usually thinking about a Vacation Plan. Vacation Plans, also known as Package Plans, Travel Insurance, Trip Cancellation Insurance, or Trip Insurance, all refer to a comprehensive Vacation Plan. This type of plan offers the most coverage, including trip cancellations, medical emergencies, evacuations, loss or delays, luggage assistance, and more.

Vacation plans are incredibly popular among travelers because they provide a simple and all-encompassing solution to their needs. In fact, over 94% of travel insurance sales are Vacation Plans. These plans include coverage for canceled or interrupted trips, medical emergencies, emergency evacuations, delayed or lost baggage, and provide 24/7 assistance, among other benefits.

Vacation Plans Vacation plans provide all the coverages that travelers tend to look for.

If you are planning your next vacation and looking for travel insurance, a vacation plan is exactly what you need.

2. Travel Medical Plans

Medical coverage while traveling abroad

Regular health insurance plans often provide limited or no coverage while you are traveling outside your home country. Travel Medical Insurance plans, on the other hand, offer coverage that goes beyond what your regular health insurance provides.

Travel medical plans are designed for travelers leaving their home country who are not concerned with trip cancellation or interruption. These plans mainly focus on medical emergencies, evacuations, and sometimes even life insurance. If you are traveling abroad and not worried about trip cancellations, delays, and baggage issues, a travel medical insurance plan is perfect for you.

Travel medical plans primarily provide coverage for medical expenses and emergency evacuations. Some plans even offer benefits such as coverage for pre-existing conditions, multi-trip and renewable protection, emergency medical evacuation, and coverage for long-term travel abroad.

Specialty Plans (Evacuation-only, Travel Accident, Rental Car)

Beyond the two basic types of travel insurance, there are specialized plans to meet unique needs. While we won't delve into the details of these plans here, it's essential to mention them.

Evacuation plans focus on emergency evacuations and are often sold on an annual basis as a membership. These plans ensure that you won't lose your savings to a costly emergency medical evacuation as the company arranges for transport.

Accident plans provide life insurance style coverage for travelers. They pay benefits in the event of a serious injury resulting in dismemberment or loss of life. Benefits from these plans are in addition to any benefits paid by separate life insurance plans.

Vacation Plans are the Best Choice

Because they combine the most coverage in a single plan

The vast majority of travelers choose vacation plans precisely because they offer the widest coverage in a single package. If you want to ensure comprehensive protection for your trip, a vacation plan is your best bet.

Remember, selecting the right travel insurance plan is crucial to safeguard yourself against unforeseen circumstances during your travels. Consider your needs, analyze your trip criteria, and pick a plan that suits you best.

Next in the series: Next, we will explore how to select a plan based on your specific needs. You will discover a simple process for analyzing your requirements and choosing the perfect plan for your trip.

Go back to the Travel Insurance 101 series.