How to Read & Understand Your Policy Wording
When purchasing travel insurance, the Confirmation of Coverage and policy wording form the contract. Together they are the guide to what will and will not be covered. Understanding these two items when purchasing insurance is imperative.
The policy wording contains multiple, equally important parts:
The Table of Contents lets you know where each section of the policy wording starts within the booklet. This is usually located within the first couple pages of the booklet.
In order to purchase a policy, you must be eligible. Eligibility Requirements will list who is eligible for coverage and who is restricted from purchasing.
At a quick glance you are able to view the Schedule of Maximum Benefits by Plan that highlights the maximum benefits for each plan. You will also see this on the Confirmation of Coverage.
Pre-Existing Conditions can either be discussed within their own section or under the Exclusions.
To understand during what times the policy would come into effect, Period of Coverage outlines when coverage ends and begins. It is important to note that different coverages commence and end at different times.
Most travel insurance policies provide Travel Assistance; this is usually 24/7 coverage that is provided to the policyholder. Their responsibilities would be outlined here.
Benefits under the policy:
Trip Cancellation, Trip Interruption, Trip Delay, Baggage & Personal Effects are non-medical coverages listed each in their own section.
The most commonly purchased coverage when purchasing travel insurance is Emergency Medical. The benefits listed within this section are for sudden and unforeseen injuries and illnesses.
Travel Accident coverage provides you with coverage for injury while you are on your trip. Worldwide and Airflight Accident coverages are available.
Rental Vehicle Damage Protection is coverage for damage you may sustain to your rental vehicle, while on a covered trip, anywhere in the world.
Note: All of the above sections will include information on:
- When it Applies
- What We Cover
- What We Exclude
- What We Pay
- What to Do If You Have a Claim
To understand what is not included under all sections of the policy, the General Exclusions will describe all circumstances under which no benefits would be paid.
Any provisions applicable to the policy are listed under the General Policy Provisions.
Throughout the policy you will notice capitalized and bolded words. This in an indication that they are defined in the back of the policy wording booklet under Definitions for your further clarification.
When submitting a claim, all important contact details are listed in the Claims Information section, as well as directions on how to submit a claim.
The Confirmation of Coverage is a document that is received along with the policy wording booklet at the time of purchase. This document shows: the policy number, insured information, agent’s information, insurance company’s information, benefits summary and the effective/expiry date.
During the sales process, be sure ask lots of questions. Understanding your policy is key to travelling with peace of mind.
Looking for a quote or have a question about your current policy? Give a call at 1-855-566-8555 today!