What is Travel Insurance And The Purpose of Having It

In the financial pyramid, insurance occupies a basic position, namely protecting wealth to maintain future prosperity. Placing insurance as a top priority certainly cannot be separated from the insurance benefits obtained by policy holders.

In this discussion, we focus on discussing the objectives, benefits and functions of insurance. It would be better if you knew more about travel insurance.

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What is Insurance?

Insurance is basically an agreement between the insurance party as the guarantor and the customer as the insured. In insurance, the insurer provides coverage or replacement if something happens to the insured or his belongings in accordance with the agreed agreement.

What is Travel Insurance?

Travel insurance is a type of insurance that provides protection while the user travels, both within and outside the country. This type of insurance is not mandatory, but it is a good idea to have it. Ownership of this protection serves to reduce the financial impact of the risk of loss that may occur during travel.

Travel insurance offers benefits in the form of coverage for tourists’ medical costs during the trip. However, if you feel it is still not enough, there are several additional premiums you can choose for protection. For example, protection against delays or loss of baggage, travel schedule delays and flight cancellations, and protection for the home if you leave the house for a long period of time.

1. Single Trip Insurance

The first type of travel insurance is Single Trip Insurance. As the name suggests, this is short-term insurance intended for travelers who do not travel regularly or only a few times a year. For travelers whose vacation is only once every three months, they can buy this type of insurance.

2. Annual Trip Insurance

Different from Single Trip Insurance, this type of insurance is aimed at those who travel frequently or regularly. For example, once a month or even once a week. Even if the purpose is for a holiday, this insurance is ready to cover it.

3. Travel Insurance Based on Travel Destination

Each traveler’s travel goals are definitely different. There are those who travel because they want a holiday, but there are also those who travel on business.

Whatever the destination, tourists can choose destination-related insurance when traveling. If the purpose of the trip is for traveling purposes, then you can choose travel insurance. However, if the tourist destination is a business trip, then choose business travel insurance.

Please note, what differentiates the two types of insurance is the premium amount. Usually, insurance for business or work purposes is offered with a larger premium amount because it carries greater risks.

4. Travel Insurance Based on Travel Destination

This type of insurance is divided into two, namely domestic travel insurance and international travel insurance. Domestic travel insurance is insurance that provides protection for domestic travel, while international travel insurance provides protection for mobility when traveling to and outside the country.

The premium amounts for these two types of insurance are certainly different. Overseas travel insurance to countries such as Europe, Australia and America has a larger premium amount. There is also special foreign insurance such as Hajj and Umrah insurance whose premium value is also greater.

5. Individual Travel Insurance

This type of travel insurance is suitable for those who like to spend time and travel solo. As the name suggests, Individual Travel Insurance is specifically for one person on one trip and one insurance policy. This insurance is included in the personal insurance category.

6. Group Travel Insurance

Next, there is Group Travel Insurance. This type of travel insurance is usually used for business trips and group holidays. For those who often travel with friends or family, this insurance can also be an option. By purchasing this insurance package, the price of travel insurance is more economical than having to buy individual insurance for all family members.

Having travel insurance also functions to improve psychological well-being. Customers can feel peace of mind and don’t need to worry when they have insurance. A relaxed mind will certainly enable customers to concentrate on living their daily lives in peace.