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There are
different travel insurance plans offered by different sources. Unless you
understand the actual process of these plans, it would be difficult to procure
the benefits of these plans.
Primarily,
there are two types of plans- wholesale and retail. As with the other
commodities, the wholesale policy works out to be the better.
When you opt for
a retail policy, the chances are that you end up paying unnecessary costs that
cover the overhead costs of the travel agent as well as the insurance company.
On the other hand, a wholesale policy is operated together by the tour operator
and the insurance company and so it fetches a good amount of money to the
person insured.
Another
category of travel insurance is the long-term and single-trip policies. The
long-term insurance option is provided for a minimum of one year and covers all
the travel made during that period. Though expensive, it brings a good return
to regular travelers. On the other hand, single-trip policies are ideal if you
plan to make one or two travels a year.
Also,
there is a serious choice to be made between the primary cover and the
secondary cover. The primary cover is more beneficial as the insurance company
makes the payments first and you pay the remaining losses thereafter. On the
other hand, the secondary cover insists that you raise funds from other
policies, such as auto insurance or personal insurance, and the travel
insurance company will pay later. For example, in the case of a car accident,
the secondary insurance option will force you to claim your car insurance fund
first and the travel insurance fund later.
Another
difference in the travel insurance plans is the ‘real insurance' and the
suppliers' ‘self insurance'. While the real insurance takes care of your entire
travel plans, the self-insurance is intended to save the cancellation fees
charged by your agency.
Considering
the different aspects of these policies, one can easily choose the best option
for them.
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