Three mason jars
Give. Save. Spend. Three jars sit on my six-year old’s bookshelf, one for each of those words. It's just one of the ways my wife and I are teaching our children to manage money.
We all love getting away from it all and going on vacation. Amid the excitement of planning and preparing, there is often the question of whether travel insurance is needed.
First, let's take a look at the types of travel insurance available. There are two main types of policies you can buy – single trip and annual insurance. As the names suggest, single trip insurance covers you for one trip, whereas annual insurance covers you for multiple journeys within a set period.
Travel Insurance Basics
There are various types of travel insurance coverage, many of which offer different features. The one you purchase will depend on factors such as where you are going, what you will be doing on vacation, and the length of your trip.
The most common options are:
In addition to the benefits listed above, travel insurance can offer you real peace of mind to have coverage should the worst happen during your vacation.
Certain groups of travelers may benefit more from buying travel insurance. These include:
Is it Worth It?
Travel insurance provides you with real peace of mind, so it is ideal for you if you are a worrier, if your trip cost a lot of money, or if you have a legitimate concern about the vacation destination.
In considering different policies, there are some “benefits” that you probably won’t need, such as death coverage. In fact, a decent life insurance policy is a better option if you have concerns regarding your mortality.
Also, if you have booked a short, inexpensive, and domestic trip, it is unlikely you will need insurance. Many travel insurance policies do not cover some pre-existing medical conditions either, so if you are considering purchasing medical insurance, be sure to investigate the coverage thoroughly.
Sometimes, other insurance you have or your credit card may already provide the coverage you need. That is another important aspect to check before you spend money on a new travel insurance policy.
Travel insurance is a good idea if you need peace of mind when you are on vacation, especially if you do not have any other back up.
If you are planning on trying out some extreme sports, on visiting a developing country, or anything else in between, it might be worth taking out travel insurance. However, the concept of risk is one that varies from person to person, so whether or not you take out travel insurance can be a very personal choice.
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