The Pros and Cons of Travel Insurance
July 10, 2023 Author: Tess Downing, MBA, CFP®, Complete View Financial
Travel insurance is one of the most challenging decisions when booking a vacation, especially after the COVID-19 pandemic. People in the past have hesitated to purchase travel insurance; however, after the constant chaos and uncertainty the pandemic brought, there has been a slight increase in travel insurance buying based on the unknown. People want to be prepared if something or another unpredictable worldwide event occurs. Whatever the reason, here are some pros and cons to pay attention to when purchasing travel insurance.
Pros of Travel Insurance
- Provides financial security: Travel insurance provides an opportunity for a refund, whereas otherwise expensive travel plans may not have that option.
- May cover emergency medical expenses: Injuries are never planned. Travel insurance can help cover the costs of unexpected trips to the hospital or doctor to get treated.
- Can cover uncertainties: Weather, injuries, illness, etc.
- Can include 24/7 emergency services.
- Can see significant savings when using the policy in certain situations.
Cons of Travel Insurance
- Can be expensive: Some travel insurance can be between 4-10% of your prepaid vacation costs.
- You may never need to use your coverage.
- Need help choosing a policy.
- Not all scenarios will be covered by your policy choice.
- Coverage may be unnecessary if some things are already covered by other forms of insurance, such as car insurance, health insurance, etc.
- Thorough research should be conducted.
Making the right decision for your family regarding travel insurance is essential. Please research and speak with your loved ones to see if travel insurance suits you. Complete View Financial is here to help guide you through these financial decisions.