America's Benefit Specialist March 2023

TRAVEL INSURANCE

This sharp increase in travel demand has left airlines scram bling to fill staffing voids caused by COVID and to quickly train staff. This has led to cutbacks on flights, and airports that have been overwhelmed, which has resulted in cancel lations and delays. With the commensurate increased cost of tickets–some business-class tickets having nearly doubled in price–customers are hungry for coverage, particularly in this post-COVID landscape. According to a recent report, the average cost for a one week domestic vacation in the United States for a couple is $3,116. This number only increases for families, and if you’re booking a trip internationally rather than within the United States, you can more than double it. Thus, many people cannot afford to lose the investment they’ve put into booking their vacation if they are unable to attend the trip for any reason. Regardless of why travelers might need to cancel, oftentimes they’ll be unable to recoup payments they’ve made toward hotels, flights and other ac tivities that cost upwards of thousands of dollars, especially late into the reservation, say within days or weeks of the trip commencing. In the event they’re able to obtain a refund, it likely won’t be the full payment. Even with advanced planning, there are many ways that travel plans can be disrupted on your way to your final destination. Any missed flight connections, lost luggage and other setbacks can be costly and may even alter the level to which folks can enjoy their trip altogether. With a travel insurance policy, individuals may be reim bursed for any additional accommodation or travel expenses they incur, or prepaid expenses lost due to a travel delay. Plus, some policies can possibly reimburse them for any required essentials they had to pay for while their luggage was lost or delayed. Above all, travel insurance that has emergency medical benefits, emergency medical transportation benefits, and coverage for unexpected expenses is recommended by the United States Department of State. Thus, you can assume it’s a worthwhile investment for travelers, especially when they’re heading abroad. While traveling internationally, many travelers will con tact a local U.S. embassy or consulate when facing issues or setbacks while on their trip. However, there are only certain things these staff members can do that are within their pow er, like replacing a stolen or lost passport, contacting friends and family in the United States, or helping Americans find medical care or legal assistance. They cannot help individuals pay for medical care, provide them with transportation, or cover any financial losses they face from an emergency while on vacation. This is why they recommend you have a travel insurance policy while travel ing internationally.

Joe Lesher, CEO of TME Travel Insurance, said: “Prior to COVID, approximately 20% of travelers purchased travel in surance, and today its estimated that 79% are seeking some type of protection.” While it may seem that travel restrictions are a thing of the past, it’s important to know that many countries currently require a minimum of travel insurance to help defray a country’s costs of coping with travelers who have contracted the disease. CNBC reports, as of February 2022, that “sixty countries require tourists to have a mini mum level of travel insurance.” Travel insurance has filled the void left by other coverages, offering policies that defray costs on medical expenses, quar antine stays, cancellations and more. Lesher said, “A compre hensive trip protection plan that includes Trip Cancellation/ Interruption, Trip Delay, Medical Expenses and Emergency Evacuation that covers COVID, as well as protection for lost baggage and much more, typically costs five to nine percent of the insured trip.” Demand is high and many first-time buyers are not sure where to turn. As you can see, there are many reasons why travelers want to secure a travel insurance policy after booking any trip. For just a few hundred dollars, in most cases, there are comprehensive plans that may cover tens of thousands of dollars in prepaid and nonrefundable costs, emergency medical expenses and more. Travel insurance can be equally valuable whether traveling domestically or internationally. As many travelers are first-time buyers of travel insurance, they are seeking expert advice. Not sure where to turn, these consumers are more and more often looking to their trusted insurance advisor for guidance and access to quality travel insurance coverage. WITH A TRAVEL INSURANCE POLICY, INDIVIDUALS MAY BE REIMBURSED FOR ANY ADDITIONAL ACCOMMODATION OR TRAVEL EXPENSES THEY INCUR, OR PREPAID EXPENSES LOST.

To get contracted with TME, visit www.tmetravelinsurance/ NABIP.

40 ABS | benefitspecialistmagazine.com