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Travel Insurance

Travel insurance provides financial protection for unexpected events that occur while you are traveling outside your home province, territory, or country. It helps cover emergency medical expenses, trip cancellations, interruptions, delays, lost luggage, and other unforeseen travel-related incidents. The most important component of travel insurance is emergency medical coverage, which pays for hospital and physician costs, medical evacuations, and repatriation in case of serious illness or injury abroad

Travel insurance can be purchased as a single-trip policy, covering one specific trip, or as a multi-trip annual plan, which provides coverage for multiple journeys within a year. Coverage begins on the effective date listed in the policy and continues until the end of the trip or policy period. Many credit cards include limited travel insurance benefits, but standalone plans generally offer broader coverage and higher limits.

Example:

If you are traveling to Europe and suffer a broken leg that requires hospital treatment, your travel insurance will cover eligible emergency medical expenses, such as hospital stays, surgery, and prescription medications, up to the policy maximum.

What to Watch For:

Always review your plan’s pre-existing condition stability requirements, as claims may be denied if a medical condition was unstable before departure. Confirm coverage limits, exclusions for high-risk activities, and whether your policy includes trip cancellation and interruption protection. Carry your insurer’s emergency assistance contact information when traveling, as you must notify them immediately in the event of a medical emergency.

Related Terms

Term Life Insurance

Term life insurance provides financial protection for a specific period of time, known as the term, such as 10, 20, or 30 years. If the insured person dies during that period, the insurer pays a tax-free lump-sum death benefit to the designated beneficiary. This type of insurance is designed to provide affordable coverage for temporary needs, such as replacing income, paying off a mortgage, or supporting dependents until financial independence is achieved.

Treatment

Treatment refers to any medical, dental, or therapeutic care provided by a licensed healthcare professional to diagnose, manage, or improve a health condition, injury, or disease. In the context of insurance, treatment includes all services, procedures, medications, and interventions that are deemed medically necessary to restore or maintain health. It can range from routine doctor visits and prescription drug use to surgery, rehabilitation, and specialized therapies.

Trip Cancellation and Interruption Insurance

Trip cancellation and interruption insurance provides financial protection when a trip must be canceled, delayed, or cut short due to unforeseen events beyond the traveler’s control. This coverage helps reimburse non-refundable travel expenses such as flights, hotels, and tour bookings that would otherwise be lost if a covered reason prevents or disrupts your travel plans.

Trip Length Limit

The trip length limit defines the maximum number of consecutive days a travel medical insurance policy will cover per trip. If your trip exceeds this limit, coverage stops at the end of the specified period unless you purchase a top-up extension.

Have questions about your insurance coverage?

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