Most of us are used to having insurance: for our house, for our car and for our life. But have you ever given any thought about how travel insurance actually works? Think of all of the variables that can be part of – and influence – you when you travel. Your location, time of year, destination and your mode of travel can make or break your break if this crucial, but often travel component is not considered. Insurance is a way to manage risk. When you buy insurance, you’re essentially transferring the financial risk of something bad happening to an insurance company. Here’s how it works. This first element may be obvious, but it’s still worth reviewing.
Here are the basics: you pay a regular fee, called a premium, to the insurance company. This premium is calculated based on the likelihood of the event you’re insuring against happening and the potential cost of that event. Next, the insurance company pools your premiums with those of many other people who have similar insurance policies. This creates a large pool of money for one and all.
Claims are Paid: If something bad happens to you that’s covered by your insurance policy (like a car accident, a house fire, or a medical emergency,) you file a claim with the insurance company. They then use money from the pool to help pay for your losses or damages, up to the limits of your policy. It’s interesting to know that Not Everyone Makes a Claim: Most people who have insurance policies won’t make a claim in any given year. This is how insurance companies can afford to pay out large sums of money to those who do need it.
We like and recommend World Nomads for mature individuals. They focus on us older folks and have not only ideal insurance plans, but they target those of us who love to travel. Click on the image above to learn more & get started. You might find that doors will open that you thought were not possible.