When to Buy Travel Insurance?
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KEY POINTS
Purchasing travel insurance early provides maximum financial security and peace of mind
Many highly desirable coverages, including pre-existing condition waivers and cancel for any reason, must be purchased within a specified time period from the date of your initial trip deposit
Choosing to invest in travel insurance might just be one of the most crucial decisions for both your financial well-being and overall health.
Sounds a bit dramatic?
Well, it's not, and here's why.
While protecting your non-refundable trip costs can spare you from potential financial losses amounting to thousands of dollars, it's essential to recognize that this is just one facet of the broader picture. The true significance and power of travel insurance lies in its medical coverage.
Imagine a medical emergency unfolding in a foreign land, leading to escalating medical expenses, prolonged legal battles, and, in extreme cases, personal bankruptcy. This is where the real value of travel insurance becomes evident.
Understanding how the timing of your travel insurance purchase can impact your financial protection is imperative. Let's delve into why this decision is pivotal for your peace of mind and financial security.
Critical Purchase Timing Factors
Financial exposure begins with your first trip payment. Purchasing insurance promptly ensures early financial security and peace of mind.
Trip Cancellation
Trip cancellation insurance often covers up to 100% of your non-refundable trip costs, subject to limitations and exclusions. You should buy the insurance as soon as you book your trip so that you do not have any gaps in coverage. It could be very costly if your trip was cancelled while you were waiting to buy the insurance.
There are several other policy coverages that are only available if you purchase them within the timeframe stipulated in the insurance policy.
Pre-existing Conditions
This insurance holds significant importance for you and any fellow travelers with pre-existing medical conditions. While numerous policies exclude coverage for such conditions, a considerable number do provide a pre-existing medical conditions waiver.
This waiver often reimburses 50-75% of your non-refundable trip expenses. It's crucial to note that it usually needs to be purchased within a specified timeframe from your initial trip payment.
Cancel for Any Reason
Obtaining this coverage is highly desirable and recommended. It allows you maximum flexibility regarding cancelling your trip. Reasons for cancellation may include your change of mind, illness of a friend, pregnancy, and more.
Like trip cancellation coverage, it is advisable to secure this protection promptly after booking your trip. Typically, insurers mandate that this coverage be acquired within a specified timeframe, often ranging from 14 to 21 days from the date of your initial trip payment.
Cancel for Work
This can provide coverage for things like a work scheduling change, merger, acquisition, bankruptcy, damage to your place of business, or you are required to change your primary residence due to work related reasons.
Like Cancel for Any Reason above, this coverage typically needs to be purchased 14 to 21 days from the date of your initial trip payment.
Interruption for Any Reason
This coverage allows you to return home from your trip early for any reason. Reasons may include situations like a marital disagreement while travelling, financial damage at home, subpar accommodations, and more. It typically needs to be purchased 14-21 days from the date of your initial trip payment.
Early Purchase Benefits
Some insurers offer complimentary upgrades if you purchase your policy early. These upgrades may include a pre-existing condition waiver, cancel for any reason, cancel for work reasons, and more.
Fun Fact
Typically, the cost of travel insurance does not get more expensive the closer you get to your departure date.
How do you purchase travel insurance?
The industry is very competitive and there are numerous options online at your fingertips.
You can choose from comprehensive policies with multiple tiers, medical only plans, adventure and extreme sports specialty plans, single trip plans, multi-trip / annual plans. Most plans come with optional upgrades that provide you with added flexibility.
We invite you to read our post How to Make Smart Travel Insurance Decisions? as a the first step in the process. We are confident you will be able to find a policy that is tailored to your needs and your wallet.
