India’s rapidly growing economy is giving a boost to overseas travel, with the nation all set to be a crucial contributor to the global leisure travel market. This is evident from the prediction that India’s outbound travel numbers will rise from 13 million trips in 2022 to more than 80 million by 2040. And, it is interesting to note that Central and Eastern Europe saw the largest number of Indian travellers in 2021.
If you too are planning on an international holiday, make sure you keep yourself and your loved ones protected with travel insurance. A good international travel policy will cover you for both medical and travel-related emergencies at an affordable premium. Here’s what you should know about international travel insurance premiums so that you can plan your trip and your policy purchase wisely.
Premium Amount for International Travel Policy
Several factors are considered by insurance providers to calculate the premium on an international travel policy.
Age of the Traveller: Insurance premiums for foreign trips tend to be higher for older adults. This is because they are more susceptible to medical conditions. The insurance company will consider all potential health risks that could be likely during the trip based on your age.
Travel Frequency: A multi-trip policy typically entails a higher premium than a single-trip policy since it is covering you for multiple visits or destinations.
Travel Duration: Shorter timeframes are associated with lower travel insurance premium. This is because longer trips increase risk of mishaps, which is taken into account by the insurance company. The higher the risk to them of a claim being filed, the higher the premium is likely to be.
Travel Destination: Many countries have made travel insurance mandatory. Destinations that have higher risk of accidents, theft, and other hazards tend to attract higher international travel insurance premiums. The economic situation and political stability of the country are also factored in.
Travel Activities: To include certain activities in your insurance cover, you might need to request for add-on cover, which will add to the premium for travel policy.
The premium will also depend on the coverage amount you opt for. For instance, a basic plan would have a much lower premium than a comprehensive policy that covers a wider range of risks and medical treatment. However, comprehensive plans also give greater peace of mind that a calamity in a foreign country doesn’t turn into a financial crisis for you.
What to Keep in Mind While Buying International Travel Insurance
Analyse your budget and consider whether you are a frequent flyer, have pre-existing medical conditions and the overall itinerary of the trip. These will help you plan the coverage and subsequently, the premium. Always compare multiple plans by checking the terms and conditions and consumer reviews. Learn about the exclusions, inclusions and the claim settlement procedure. And be truthful about your medical condition at all times.
Insurance premium for foreign trips is a small yet significant way to safeguard your travel. Make the premium payment on the due date to avoid penalties or your international travel insurance lapsing.
