To answer the question "is purchasing travel
insurance smart?" let's look at what insurance is.
When you purchase insurance - health insurance, homeowner's insurance,
car insurance, life insurance, or travel insurance - you're not
making an investment. It's not the same as going to the bank and
depositing money and expecting to reap financial rewards at some
point. No, any insurance including travel insurance is about sharing
risk in case of unforeseen catastrophic events.
For thousands of years, risks have been shared during times of
tragedy. The first formal insurance company, Lloyd's, was formed
in 1769, and their insurance concept remains today - to gather
the premiums of clients as a pool of resources to return to clients
who experience covered events.
Is purchasing travel insurance smart for you, then? Do you need
a pool of resources from others' premiums to help you out in the
event of a travel emergency? Or can you take care of any unforeseen
circumstance on your own? It's not just about money, either.
To decide if purchasing travel insurance is smart for you, let's
take a look at just a few of the things that could happen while
you're traveling.
It's your first time in Europe and neither
you nor your spouse speak any foreign language and your wallet
is stolen. Your credit cards, your airline tickets, your passport
and your money are all gone. What do you do now? Money may not
be the primary problem here as you can always call your bank and
have a wire transfer completed. Or can you? Do you know the international
rules and capabilities for this? Where are the banks and do the
tellers speak English? What about replacing your airline tickets?
What about money to get to the airport and check out of your hotel?
Your passports are the primary issue probably. They took a very
long time to get. Now you can't get out of the country without
them. Where do you go to replace them? If you had known this was
going to happen, how would you have answered the question, "is
purchasing travel insurance smart?"
Your child is involved in an accident and must have medical assistance
but you find out your insurance does not cover you outside of
the United States, and medical care is not adequate where you
are anyway. How do you get your child back to the United States
for medical care? If you had known this was going to happen, how
would you have answered the question, "is purchasing travel insurance
smart?"
So, to answer the question, "is purchasing travel insurance smart?"
consider what could happen while you're abroad and determine if
you might be grateful for outside assistance.
About the Author
Steve Cogger, an active traveler, has developed http://www.1-Happy-Traveller.com
for your convenience. Visit today for all of your travel insurance
needs.
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Health, Wealth, Travel and Technology Magazine