What are the Factors that Affect Your Travel Insurance Premium?

If you have travelled before, you would certainly agree that travelling is one of the most beautiful and memorable experiences of life. But one cannot deny the fact that it also brings with it several risks which cannot be avoided despite careful planning. Whether you are travelling solo or with your family for business, study or leisure, a travel insurance plan helps you overcome any unexpected financial setbacks that you may encounter during travel. Hence, travel insurance is a must buy before you set out to travel, especially overseas.

If you have travelled before, you would certainly agree that travelling is one of the most beautiful and memorable experiences of life. But one cannot deny the fact that it also brings with it several risks which cannot be avoided despite careful planning. Whether you are travelling solo or with your family for business, study or leisure, a travel insurance plan helps you overcome any unexpected financial setbacks that you may encounter during travel. Hence, travel insurance is a must buy before you set out to travel, especially overseas.

 

When buying travel insurance, the premium is one of the most important factors to consider. An ideal travel insurance policy should offer you maximum coverage for a reasonable premium. While the premium is an important factor to consider, it should not be the only criteria. Buying a travel insurance policy at a low premium with inadequate coverage is as good as buying no insurance at all.

 

Factors Affecting Travel Insurance Premium

If you have explored various travel insurance policies online, you will immediately notice that each offering comes with a different premium. The premium of a travel insurance policy is dependent upon the policy coverage and several other factors. Read on to find out the various factors that affect travel insurance premium:-

• Pre-existing Medical Conditions

This is a major factor that determines the travel insurance policy premium. In simple terms, pre-existing medical conditions refer to any physical illness or condition diagnosed prior to buying an insurance policy. Most travel insurance providers don’t cover pre-existing medical conditions. And in case they do, the premium charged will be significantly higher. If your travel insurer covers pre-existing medical conditions, make sure to disclose the illness before buying the policy.  In case you fail to declare any pre-existing disease, your claim will be classified as fraudulent and your policy will be declared void.

When you declare a pre-existing illness in your policy, you will be asked to fill up a survey form to outline your medical history. It could be anything from a breathing problem and diabetes to critical illnesses like cancer. If you are faced with a costly medical procedure linked to a pre-existing condition during your travel, your insurer is obligated to pay your expenses upfront, so long as you outlined the condition in advance. You can always consult your physician or insurance provider if you have any doubts about a pre-existing condition.

• Age of Insured Travelers

When it comes to travel insurance, the age of the insured plays a very important role in determining the premium. Older travelers are deemed more susceptible to illness and injury, as a result, older travelers are charged more premium as compared to younger ones. Most travel insurance companies categorize age into various bands with those under 60 years of age paying the lowest fee. Those aged 60-65 will need to bear a light increase, while those above 70 years of age can expect a significant increase in the cost of the premium. However, the costs vary from insurer to insurer, so it’s best to explore and compare various policies to find the best match.

• Duration of travel

Travel insurance providers work on the assumption that the longer you are away, the greater is the probability of you falling ill or getting injured. Therefore, the longer your duration of travel, the higher will be the premium charged. Regardless, it crucial to get your trip covered no matter how short or long your trip is.

• Time Sensitivity

Many travel insurance providers offer additional benefits and discounts to customers who pay for their policies policy within the first 10-30 days of booking it, which is a great excuse to invest sooner rather than later. Travelers who book in advance can also avail two major time-sensitive benefits like ‘cancel for any reason’ or a ‘pre-existing condition waiver’.

• Travel Destination

The trip destinations also play a major role in determining the travel insurance premium. The farther the destination is from your home, the higher will be the insurance premium. Which is why international travel insurance is much more expensive than its domestic counterpart. Also, if you are heading to a remote location or an area associated with certain risks, the insurance premium will be relatively higher.

• Maximum Sum Assured

Every travel insurance policy has a maximum sum assured that will pay out in benefits. Many insurers offer varying levels of coverage for the customer according to his/her budget. The higher the sum assured for a travel insurance policy, the higher will be the premium. While a high premium may seem like an additional expense initially, a high sum assured will ensure adequate protection against potentially huge losses.

• Type of Coverage

Many insurers offer two types of coverage. The first type is a comprehensive coverage while the other is medical only. The premium for a comprehensive travel insurance policy is quite higher as compared to a medical only policy due to the wide coverage. Alternatively, some insurers also offer customizable insurance plans that you can tailor to match the specifics of your trip. These can be based on the reputation of the place you are visiting, or if you are considering an adventure holiday.

• Adventure Sports Coverage

Most travel insurance policies do not cover eventualities arising from high-risk adventure sports such as sky diving, bungee jumping or scuba diving. However, some insurers provide add-on covers for high-risk activities. Opting for such additional coverage will naturally increase your travel insurance premium. If you are planning to indulge in such high risks sports activities, ensure that your travel insurance covers them.

As you can see, your travel insurance premium is dependent on numerous factors. Hence, buying travel insurance policy just by considering the premium is a bad decision. So make sure to check various factors such as policy coverage, exclusions, terms & conditions, ease of claim settlement, quality of customer service etc. before buying a travel insurance online. With Bajaj Allianz Travel Insurance Plans, you can always be assured of quick and hassle-free claim process thanks to in-house claim settlement. To buy or know more about Bajaj Travel Insurance visit Bajaj Markets