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Travel Insurance & travel protection both sound like good ideas in the world of pandemic uncertainty, but what's the difference?

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Published on April 12, 2021. EST READ TIME: 3 minutes

Travel, didn’t we all miss it dearly? From globetrotters seeking to visit the scenic beauties across the world to entrepreneurs hoping to meet their potential investors and clients, all had to keep their plans on hold. When the pandemic began, most international and domestic flights were suspended to contain the spread of the virus. Things are gradually improving as travel bans are being lifted. This time, however, we need to be extra careful while travelling. Not only we must follow all Covid-19 protocols, but we also need to prepare for eventualities as well. That’s why travel insurance and travel protection are necessary to keep inconveniences and financial losses at bay. But do you know the difference between the two? Here we compare travel insurance and travel protection for a better understanding.

1. What is travel protection?

Travel or trip protection is a feature that your travel agency offers. It comes in handy when you plan a trip, but have to cancel it later. This feature protects you from financial loss by covering trip cancellation costs. The amount can be reimbursed to you or the providers may issue you a credit note for future travel. The plan may also cover other trip-related uncertainties like lost baggage, flight delays, and missed flights.

2. What is travel insurance?

Travel insurance is a more extensive coverage. While travelling, any kind of injury, sickness, or accident will ruin your stay and when travelling during a global pandemic, the chances of falling sick are pretty high.

If you are visiting a foreign country, it will also skyrocket your expenses as medical facilities at international destinations are quite extravagant. If your condition gets critical, it may require a family member to come and look after you. Not knowing the local language or any person there, will further lead to emotional and mental stress.

Travel insurance also provides protection against situational issues like loss of baggage and important documents, missing connecting flights, or compensating a third party for unintentional damage to a person or property.

A travel insurance policy also includes arrangements for medical evacuation, body repatriation, hospital daily cash allowance, financial assistance in case of theft or robbery, and lump sum payment on accidental death or permanent disablement.

3. How is travel protection different from travel insurance?

The major difference lies in the scope of coverage. While the former covers only trip-related expenses, travel insurance provides more comprehensive coverage. The cost of a travel protection plan is cheaper than travel insurance as its reach of coverage is smaller.

Travel insurance is a regulated product while travel protection depends on the travel agency. So, when buying each, review the fine print carefully to ensure that you are not mistaking one for another.

Buying insurance and buying just a waiver for cancellation fees are two very different things. In fact, travel insurance may contain features offered by travel protection, but the opposite is unlike to happen. So, compare travel insurance benefits with that of travel protection before making the final call.

4. Why is travel insurance a better choice?

By knowing the difference between the two, if you still have any doubts on which one to opt for, then remember to go for the comprehensive travel insurance policy because of the following reasons:

• It would already include the many benefits the travel protection plan has to offer.
• It offers wide coverage. When travelling amid a pandemic, you need to have insurance that will seamlessly resolve most issues and will let you enjoy your stay.
• It is a regulated product.
• You can get a customised deal from your insurer depending on your needs and budget. 

Conclusion

These are critical times and we must act with caution. If you are planning to travel, it is advisable to choose travel insurance as it is holistic protection owing to its larger coverage scope. Compare travel insurance policies before opting for one that is suitable to meet your post-Covid-19 travel requirements.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales .