How To Select Sum Insured For Travel Insurance?

2 min read

Taking a trip is a wonderful experience but what if your experience is marred by unfortunate incidents? Careful as you might be, there are contingencies beyond your control which you might face when you travel. A travel insurance plan comes to your rescue in dealing with these unfortunate events. The plan provides financial assistance to deal with contingencies faced when you travel. That is why, a travel insurance plan is important whenever you travel, whether for business or for leisure.

When it comes to a travel insurance plan, it is always advised to choose the correct Sum Insured for the plan. Travel insurance plans offer Sum Insured ranging from $50, 000 to $500, 000. It, therefore, depends on you to choose the correct coverage amount. Do you know how?

Factors For Travel Insurance The Sum Insured Depends On:

The Destination

The most important factor, which should be taken into consideration when choosing the Sum Insured of your travel insurance plan, is the destination where you are travelling. Medical costs vary across countries. While in USA, Europe, Canada or in other developed countries, the treatment costs are high, in other Asian countries, the costs are lower. So, when you are choosing your Sum Insured, choose a higher coverage if you are traveling to countries where the treatment costs are high. If you are travelling within India or to neighboring countries, you can make do with a lower amount of cover.

The Members Covered

The next factor you should consider is the number of members travelling with you who would be covered under the travel insurance plan. If you are travelling alone, you can afford to take a lower Sum Insured. However, if you are travelling with your entire family, you would need to protect all your family members and should buy a higher cover.

Your Travel Itinerary

If you are travelling to indulge in adventure sports or going to places which are known for their adventure sports, you should make sure to include an additional coverage which covers these sports. A travel insurance plan normally excludes coverage for such adventure sports unless specifically covered. So, if your trip itinerary covers adventure sports, make sure to choose a high Sum Insured and get additional coverage for accidents resulting from such sports.

These three factors should govern your choice of the correct Sum Insured. You should be careful when choosing the Sum Insured of your so that you do not run out of coverage when you face a crisis. If the plan’s coverage amount is optimum, you can travel in peace knowing that any contingency you face would be financially compensated for by the travel insurance plan. If you are worrying about the premium, relax! A travel insurance plan is quite cheap and given the coverage offered you can easily spare a bit higher premium towards the correct level of coverage, can’t you?

Choose wisely!

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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