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Travel Insurance Terminology

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Premium

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The amount paid for an insurance policy.

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Deductible

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The portion of a claim that the policyholder is responsible for paying out of pocket before the insurance coverage kicks in.

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Policy Limit

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The maximum amount an insurance company will pay for a covered loss.

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Exclusion

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Specific conditions or circumstances for which the policy does not provide coverage.

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Trip Cancellation Insurance

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A type of coverage that reimburses the traveler for pre-paid, non-refundable expenses if they cancel their trip due to a covered reason.

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Comprehensive Insurance

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An insurance policy that offers complete protection against the risks associated with travel, including trip cancellation, medical expenses, and loss of luggage.

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Beneficiary

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A person designated to receive benefits from an insurance policy following the death of the policyholder.

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Repatriation

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The process of returning a person to their home country, often covered by travel insurance in cases of illness, injury, or death.

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Travel Delay Insurance

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Coverage that provides reimbursement for certain expenses incurred as a result of a delay in the traveler's itinerary.

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Pre-Existing Condition Waiver

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A clause in a travel insurance policy that provides coverage for medical issues that existed before purchasing the policy under certain conditions.

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Baggage Loss Insurance

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Provides compensation for the loss, damage, or theft of personal baggage during travel.

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Emergency Medical Evacuation

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Insurance coverage that provides for medical transport to the nearest hospital or medical facility in the event of an emergency.

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Accidental Death and Dismemberment (AD&D)

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A policy feature that provides benefits in case the insured suffers death or dismemberment due to an accident while traveling.

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Single Trip Insurance

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A policy that covers an individual for a single journey from departure to returning home.

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Annual Multi-Trip Insurance

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A type of policy that covers an individual for multiple trips within a year.

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Travel Health Insurance

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Provides coverage for medical emergencies and health care costs incurred while traveling.

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Secondary Coverage

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Insurance coverage that comes into effect after any other primary insurance is exhausted.

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Coverage Area

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The geographic region in which an insurance policy is effective.

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Cancellation for Any Reason (CFAR)

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An optional travel insurance benefit that allows for cancellation of a trip for a partial refund regardless of the reason, provided certain conditions are met.

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24-Hour Assistance Services

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Travel insurance services that provide travelers with access to help and resources at any time during their trip.

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Direct Payment

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An arrangement where the insurance company pays medical providers directly for services rendered to the insured.

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Expedited Passport Replacement

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A service included in some travel insurance packages which helps to speed up the process of replacing a lost or stolen passport.

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Emergency Reunion Coverage

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An insurance policy provision that covers the travel expenses for a family member to join the insured if they are hospitalized during a trip.

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Medical Concierge Services

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Additional services provided by travel insurance that offer personalized medical assistance such as doctor referrals and appointment scheduling during a trip.

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Hazardous Sports Coverage

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A type of travel insurance coverage that provides benefits for accidents resulting from participation in high-risk sports or activities.

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Identity Theft Protection

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A service offered by some travel insurance policies to assist insured travelers in the event that their personal information is stolen.

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Natural Disaster Coverage

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Insurance that provides benefits if a trip is cancelled or disrupted due to natural disasters like hurricanes or earthquakes.

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Rental Car Damage Protection

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Coverage that provides protection against damage to a rental car while it is in the possession of the insured.

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Political Evacuation

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The coverage provided by some travel insurance policies to evacuate the insured from a country due to political unrest or upheaval.

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Travel Supplier Default

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Provides protection in the event that a travel supplier such as a cruise line, airline, or tour operator goes out of business.

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