Travel Insurance Glossary
Annual/Multi-Trip
Annual or multi-trip insurance plans cover all trips taken within a year
(often with a maximum duration of one to four months per trip).
Beneficiary
The person or persons designated by the insured to receive the proceeds
of an insurance policy upon the accidental death of the insured.
Benefits
The amount payable by the insurance provider to a claimant, assignee or
beneficiary under each policy.
Co-Insurance or Co-pay
This is the percentage or amount of expenses that the insured pays (if
any) after the deductible is paid. Example: 'Co-Insurance = 10% or
co-pay is 90/10' means that the insurance company pays 90% of the
charges, and the insured pays 10%. Often there is a maximum co-pay
amount, i.e., a limit or ceiling above which the insurance provider pays
100%. Example: 'Deductible = $100 and 90/10 co-pay up to $5000, then
100% up to policy maximum.' This means the insured is required to pay
the deductible of $100 plus 10% of expenses up to $5,000, and the
insurance provider pays 100% of covered expenses that exceed $5000 up to
the maximum policy coverage limit. Thus, if total expenses exceed $5000
(e.g. $25,000 in total medical expenses) then the insured pays $100
(deductible) plus the co-pay maximum of $500 (10% of the first $5000)
for a total out of pocket cost to the insured of $600, and the insurer
pays the remaining $24,400 of expenses.
Deductible
This is the amount that the insured is required to pay before the
insurance provider begins paying. This may be an annual amount, an
amount for the duration of the policy, or an amount for each incident.
Emergency Benefits
Emergency medical evacuation means covering the expenses for sending an
injured or ill person home or transporting him/her to a place where
appropriate medical care can be provided.
Emergency Reunion
Emergency reunion means covering the expenses for having a family
member brought to the injured or ill insured during a medical emergency.
Exclusions
These are the expenses that the insurance company or travel protection
provider will not pay. Examples include: expenses resulting from illegal
drug use, conditions which existed prior to the purchase of the
insurance (see pre-existing conditions), participation in assorted
inherently
dangerous activities, participation in certain types of sports (see
hazardous sports and activities coverage), etc. Most insurance contracts
have many of these exclusions. It is important to read the fine print
carefully.
Expenses
These are the expenses an insurance provider will approve for payment.
These normally include expenses for surgery, hospitalization, doctors’
services, x-rays, laboratory tests, prescription drugs and other
medical treatments. Some of these expenses may be limited by the
insurance contract.
Family Plans
Family plans are designed to cover all members in a family traveling
together, and premiums are usually priced at a discount compared to the
rate for a single person. Some family plans may include relatives beyond the
immediate family, such as grandparents and in-laws.
Hazardous Sports & Activities Coverage
Coverage for medical expenses resulting from engaging in certain
hazardous, high risk sports and activities such as scuba diving, sky
diving, rock climbing and bungee jumping (to name just a few), is often explicitly
excluded by international medical insurance and travel protection plans.
However, some plans offer special hazardous sports and activities
coverage that is optional and usually results in a only a small
increase in premium. Always make sure you are aware of the exclusions
noted in the plan or policy you’re considering, and if you plan to
participate in any high risk activities, look for plans with optional,
supplementary hazardous sports and activity coverage.
Individual Plans
Individual plans are designed and priced to cover one person only.
Insured
This is the person covered under an insurance policy, i.e., the person
for whom the policy was purchased.
Maximum Policy Coverage
This is the maximum amount of money that the insurance provider will pay
for covered expenses. This may be an overall maximum or an amount for
each accident or illness.
Pre-existing Conditions
Medical conditions associated with the insured (or a spouse, travel
companion, or close relative in the case of travel protection plans
where trip cancellation results from the medical condition of someone
other than the insured ) that existed before the plan or policy took
effect are described as pre-existing conditions.
Many plans and policies offer limited or no coverage for medical
expenses or trip cancellation expenses resulting from pre-existing
medical conditions. These are known as pre-existing conditions
exclusions.
Premiums
This is the amount that you pay to purchase travel medical
insurance coverage or travel protection plans. Premiums may be paid in
advance, on a per trip basis, annually, monthly, quarterly, or by
semester, depending on the policy. Premiums for travel insurance plans
are usually paid in advance, either annually or on a per trip basis.
Primary Coverage
Primary coverage plans provide coverage without regard to any other
insurance or secondary coverage the plan holder may have.
Repatriation Benefit
Repatriation benefit pays the cost of preparing the body of a person who
dies in a foreign country and returning the body to the deceased's home
country.
Secondary Coverage
Secondary coverage plans require plan holders to have primary coverage,
and the secondary coverage only covers those expenses not already
covered by the primary coverage plan.
Single-Trip
Single-trip plans provide coverage for only one trip.
Travel Assistance
Travel Assistance services may be bundled into an international medical
insurance or travel protection plan, but these services are not
considered insurance. The term travel assistance covers a broad range of
services, often including but not limited to: toll-free multi-lingual
24-hour emergency telephone numbers, local offices around the world, web
sites offering aid and advice to travelers in need of travel, medical or
legal help, translation services, passport and visa assistance,
assistance filling prescriptions, and virtually any special assistance
useful to travelers in crisis who are far from home.
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