Many people tend to underestimate the importance of getting travel insurance. Sure, getting one can seem like just another expense to add to your already pricey holiday expense, but numerous seasoned travelers will tell you that travel insurance is one of the most essential things to have in your holiday planning arsenal.

All sorts of things can go awry during the holiday. Travel or holiday insurance can cover unexpected expenses during your holiday, including medical expenses, trip cancellation fees, lost luggage, flight accidents and many more. This way, you can still enjoy your trip without worrying too much about unforeseen circumstances.

Types of Travel Insurance

According to the money-saving expert, Martin Lewis, travel insurance is a necessity for travelers everywhere. With travel insurance, you will not need to pay out of pocket for unforeseen circumstances. There are various types of travel insurance, each covering different expenses.

If you are still unsure about what type of travel insurance you should get, read on to find out the details of each insurance type.

1. Medical Emergency Insurance

The only thing worse than getting sick or injured during the holidays is having to pay the steep price of medical expenses. The cost of health care, especially if you're traveling abroad, can be outrageously expensive. Medical emergency insurance can help you cover health care expenses.

2. Pre-Existing Medical Conditions Insurance

Oftentimes, basic medical emergency insurance won't cover pre-existing medical conditions. A pre-existing condition is any type of medical condition that you have been diagnosed with before getting the insurance policy.

3. Accidental Death Insurance

From airplane crashes to highway collisions, tragedies are inevitable. Be prepared for the worse by getting accidental death travel insurance. This insurance will cover the death of a family member during a trip abroad.

4. Trip Cancellation Insurance

This type of insurance covers part or the entire cost of the trip if any party participating in the itinerary of the trip has to cancel. For example, if your tour company suddenly goes out of business before your trip or if a certain circumstance prevents you from going on the trip, the cost of cancellation will be partly or fully covered by this type of insurance.

5. Baggage Insurance

Discovering that your luggage has been lost, stolen or damaged isn't only annoying, but also costly. Baggage insurance can help cover the valuables you have in your luggage. Make sure to declare your personal belongings and get a suitable insurance package.

Benefits

Now that you're familiar with some of the basic travel insurance plans, read on to find out more about each of them. Different providers may have different policies and regulations; here are some general details about each plan.

1. Medical Insurance

Medical insurance covers all or part of your medical bill. In general, medical insurance covers hospital bills and medication expenses. Further details you must know are as follows:

• Check the coverage of your insurance. The insurance company usually has a list of registered health care providers they will cover
• Dental health care is usually limited or may not even be covered
• There's usually a maximum payout and that value depends on the regulations each provider has
• Sometimes, medical insurance also covers the transportation cost to the nearest medical facility, including ambulance and airlift expenses
• Some insurance companies only cover certain illnesses and injuries
• Most insurance companies might deny coverage for pre-existing medical conditions

2. Pre-Existing Condition Insurance

As mentioned earlier, basic medical insurance may not cover health care bills related to pre-existing medical conditions. Pre-existing medical condition insurance can cover illnesses that most basic insurance policies won't cover, including:

• Cardiovascular diseases
• Heart conditions
• Asthma
• HIV
• Diabetes
• Cancer
• Epilepsy
• Dental issues

If you or your loved ones suffer from any of these conditions, you should consider getting travel insurance to cover it. Contact your local insurance provider and ask if they have a package that can cover pre-existing medical conditions prior to traveling.

3. Accidental Death Insurance

This type of insurance covers the death of you or a loved one during the trip or within a few months of your holiday due to an injury you sustained while abroad. The benefits from this type of insurance will be reimbursed to the policyholder's spouse, children or parents. It can help the remaining family members pay for funeral expenses and support their life after the loss of their loved one.

Additionally, this insurance will reimburse you or your beneficiaries, if you or a loved one becomes permanently injured or dismembered due to an accident from the trip.

4. Trip Cancellation Insurance

Trip cancellation insurance covers prepaid, nonrefundable expenses if you suddenly can't go on the trip. Accepted causes may include:

• One-sided cancellation from the tour operator
• Your operator going out of business
• Sickness, injury or death of you, a family member or a traveling companion
• Natural disasters
• Bad weather

Most package policies cover trip interruption and delay on top of trip cancellation. Trip interruption refers to any situation that causes a policyholder to unexpectedly end their trip and return home. Meanwhile, trip delay insurance will reimburse you for additional expenses for accommodation and meals if your flight gets delayed.

5. Baggage Insurance

If you ever lose your luggage or get it damaged, this insurance will be a life-saver. Different providers have different baggage insurance policies, but in general, they will cover the costs of buying essential items such as toiletries and a change of clothes. Additionally, they may also cover valuable items you may have in your baggage such as luxury watches and jewelry. However, they usually have a payout cap.

Takeaway Message

This holiday season put yourself at ease by getting travel insurance before going on your vacation. Insuring your trip is a great way to make sure your trip isn't spoiled by unforeseen circumstances, sudden expenses or unexpected medical bills. Don't forget to compare the prices and benefits offered by your local travel insurance providers to get the most value for your money. Happy holidays!