There are many types of insurance for the world traveler and choosing the right plan can be confusing. Becoming familiar with the basic types of plans and the specialised terms will make it easier to compare plans, and ultimately choose the right plan for your needs.

Often people think travel insurance means flight accident insurance, i.e., the kind of insurance that pays the insured or its beneficiary a lump sum when an airplane accident results in death or serious injury. Flight accident insurance plans are commonly found at airports and they pay substantial sums to accident victims and their families... see accidental death & dismemberment (AD & D)

However, there are two other primary types of travel insurance that are designed to reduce the financial risk posed by unforeseen medical expenses and other crises that can confront international travelers. Although the distinctions can be blurred between the two types of plans, they are generally categorised separately as travel protection plans and international medical insurance, both of which may be offered in single-trip, multi-trip, or renewable versions.

Travel Protection Plans
These plans reimburse the travel expenses which are non-refundable by the suppliers (eg airlines, hotels, car hire companies etc.) in the event of an emergency such as death, illness, airline strike or supplier bankruptcy. The emergency can occur just before travel departure or during travel. These plans often include travel assistance services such as emergency contact numbers and coverage for lost and damaged luggage and personal effects. They may include minimal coverage for medical expenses.

These plans are usually sold on a per trip or single trip basis, however some insurance companies offer annual insurance plans which can cover several trips taken during the period of a year or longer.

International Medical Insurance
These plans are designed to reimburse the traveller for medical expenses incurred while travelling or living in a foreign country. These plans may include cover for emergency evacuation, emergency reunion and emergency repatriation and may also include accidental death and dismemberment (AD & D) and travel assistance services. Travellers may be able to choose the maximum policy coverage levels and excess amount, giving the insured more control over costs than is possible with travel protection plans.

This type of insurance is generally available to all nationalities travelling worldwide. Often coverage under this type of plan is guaranteed without underwriting, meaning once a premium is paid, applicants are covered regardless of medical history and pre-existing conditions are generally excluded... make sure the plan you choose has adequate medical evacuation provisions.

Below is a summary of the most important services... It is important to locate insurance with no preexising-condition exclusion of any kind, or one that has the least amount of exclusions... exclusions can cost a lot of money.

1. Travel insurance should supply and pay for emergency evacuation to the nearest facility capable of providing proper care. When the patient is stabilised, they will provide transport back to the country of residence under medical supervision, if necessary, with no upper limit on cost.
   
   
2. When a member is traveling alone and is to be hospitalised for more than seven days, economy round-trip transportation to the place of hospitalisation should be provided, without charge, to a person chosen by the member.
   
   
3. Admission to a hospital will be guaranteed - so that the member will be admitted promptly - by either validating insurance or advancing funds (which must be repaid with a certain period, generally 45 days).
   
   
4. Plus, without charge, insurance should provide referral to an English speaking doctor, supply critical-care monitoring, deliver medications that might not be available locally, keep the member in touch with family, provide legal referrals and precaution recommendations.
   
   
5. And finally, but it can happen, the insurance company should provide assistance for and pay the cost of the return of mortal remains.

Annual Medical Insurance
This is an international medical insurance with higher maximum coverage levels and more comprehensive types of coverage and it is renewable annually. This type of cover is available to all nationalities living outside their home country and is appropriate for employees working abroad, expatriates and their families, international organisations, and anyone else wanting an annually renewable major medical insurance. A medical history is usually required and applicants may be subject to underwriting, meaning a policy may or may not be issued depending on the judgment of the underwriter. Cover for pre-existing conditions may be allowed up to a maximum limit that is a fraction of the policy maximum.

International Accident Insurance
(also known as Accidental Death & Dismemberment AD & D)
The insured or the insured’s beneficiary is paid a lump sum benefit when an accident causes death or the loss of a body part. This can be limited to common carrier AD & D where the benefit is only paid if the death or injury occurs during an accident involving a common carrier (airplane, bus, train, taxi etc.)

Other insurance plans available are:

International Major Medical Insurance
A primary medical insurance designed to take the place of a domestic private health insurance policy or national health care scheme. This type of plan may feature worldwide coverage, option to renew indefinitely, high lifetime maximum benefits, choice of excess and optional extras at an additional premium. They also may provide coverage for routine healthcare, prescriptions, maternity expenses and limited coverage for pre-existing conditions.

International Life Insurance
A one year renewable term life insurance that pays a lump sum to the beneficiary upon the death of the insured person, during the period of coverage. These plans feature worldwide coverage, an option to renew the policy to a certain age (usually 64) and high maximum benefits.

International Accident Insurance
An annually renewable insurance paying a lump sum to the insured’s beneficiary in the event of the death of the insured or loss of a body part or function due to accident. Features of these plans are worldwide coverage, option to renew to a certain age (usually 64) and high maximum benefits.