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Travel Insurance Terminology
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Premium
The amount paid for an insurance policy.
Deductible
The portion of a claim that the policyholder is responsible for paying out of pocket before the insurance coverage kicks in.
Policy Limit
The maximum amount an insurance company will pay for a covered loss.
Exclusion
Specific conditions or circumstances for which the policy does not provide coverage.
Trip Cancellation Insurance
A type of coverage that reimburses the traveler for pre-paid, non-refundable expenses if they cancel their trip due to a covered reason.
Comprehensive Insurance
An insurance policy that offers complete protection against the risks associated with travel, including trip cancellation, medical expenses, and loss of luggage.
Beneficiary
A person designated to receive benefits from an insurance policy following the death of the policyholder.
Repatriation
The process of returning a person to their home country, often covered by travel insurance in cases of illness, injury, or death.
Travel Delay Insurance
Coverage that provides reimbursement for certain expenses incurred as a result of a delay in the traveler's itinerary.
Pre-Existing Condition Waiver
A clause in a travel insurance policy that provides coverage for medical issues that existed before purchasing the policy under certain conditions.
Baggage Loss Insurance
Provides compensation for the loss, damage, or theft of personal baggage during travel.
Emergency Medical Evacuation
Insurance coverage that provides for medical transport to the nearest hospital or medical facility in the event of an emergency.
Accidental Death and Dismemberment (AD&D)
A policy feature that provides benefits in case the insured suffers death or dismemberment due to an accident while traveling.
Single Trip Insurance
A policy that covers an individual for a single journey from departure to returning home.
Annual Multi-Trip Insurance
A type of policy that covers an individual for multiple trips within a year.
Travel Health Insurance
Provides coverage for medical emergencies and health care costs incurred while traveling.
Secondary Coverage
Insurance coverage that comes into effect after any other primary insurance is exhausted.
Coverage Area
The geographic region in which an insurance policy is effective.
Cancellation for Any Reason (CFAR)
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.
24-Hour Assistance Services
Travel insurance services that provide travelers with access to help and resources at any time during their trip.
Direct Payment
An arrangement where the insurance company pays medical providers directly for services rendered to the insured.
Expedited Passport Replacement
A service included in some travel insurance packages which helps to speed up the process of replacing a lost or stolen passport.
Emergency Reunion Coverage
An insurance policy provision that covers the travel expenses for a family member to join the insured if they are hospitalized during a trip.
Medical Concierge Services
Additional services provided by travel insurance that offer personalized medical assistance such as doctor referrals and appointment scheduling during a trip.
Hazardous Sports Coverage
A type of travel insurance coverage that provides benefits for accidents resulting from participation in high-risk sports or activities.
Identity Theft Protection
A service offered by some travel insurance policies to assist insured travelers in the event that their personal information is stolen.
Natural Disaster Coverage
Insurance that provides benefits if a trip is cancelled or disrupted due to natural disasters like hurricanes or earthquakes.
Rental Car Damage Protection
Coverage that provides protection against damage to a rental car while it is in the possession of the insured.
Political Evacuation
The coverage provided by some travel insurance policies to evacuate the insured from a country due to political unrest or upheaval.
Travel Supplier Default
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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