Thursday, August 20, 2009

Top 10 Need-To-Know Travel Insurance Terms

For many people, insurance can seem like a foreign language that only those fluent in 'insurance speak' can understand. To master the art of insurance appreciation however, you don't need instruction from RosettaStone or Berlitz, just a little help from

"Travel insurance like all insurance is complex," explains Jim Grace President and CEO of, "but a fundamental understanding of industry terms and phrases that commonly cause confusion, can clear up some of the mystery. At, one of our key goals is to help travelers understand travel insurance, and that means starting with the basics."

These are the top ten travel insurance terms that every consumer should know as they prepare to purchase trip protection for their upcoming travels:

1. A.M. Best Ratings: Industry watchdog A.M. Best rates and assesses insurance companies' financial strength and ability to meet their obligations to policyholders. features a user-friendly monitoring tool for consumers to check the A.M. Best Ratings of all the leading U.S. travel insurance companies before you purchase coverage.
2. Unforeseen: means not anticipated or expected and occurring after the effective date of the policy.
3. Primary: This section of the policy will pay FIRST, before any other collectible insurance.
4. Secondary: This section of the policy will pay you after any other Primary collectible insurance has paid the claim and the Primary policies' limits have been exhausted.
5. First Trip Payment Date: This is the date that money first exchanged hands for the trip you want to insure. This is the date the check is written, not the date it is cashed.
6. Pre-existing Medical Condition Waiver: Many policies have a pre-existing medical exclusion, meaning that coverage is not available for pre-existing medical conditions. A Pre-existing Medical Condition Waiver essentially deletes that exclusion and extends your policy to cover pre-existing condition-related risks. To be eligible for a Pre-Existing Medical Condition Waiver, the majority of travel insurance policies require that you purchase your policy within 10 to 21 days of your first trip payment date and insure for the full amount of your non-refundable travel arrangements.
7. Look Back Period: This is the number of days that the insurance company will 'look back' from the date the insurance was purchased to see if your claim is related to a pre-existing medical condition. The Look Back Period varies by company and plan and does not apply if you qualified for the Pre-existing Medical Condition Waiver offered by many plans.
8. Cancel For Any Reason: This is an optional benefit that empowers travelers to cancel trips for any reason including sudden unemployment, schedule conflicts, even bad weather, up to two days prior to departure. Cancel For Any Reason policies vary by company and must be purchased within 10-21 days of your first trip payment date.
9. Financial Default: This is a benefit that is part of Trip Cancellation/Interruption coverage. This protection applies if the airline, cruise line, or tour operator goes out of business and you are unable to travel as a result or suffer financial loss. Since this coverage is time sensitive, you must purchase a policy within 10-21 days (varies by company) of your first trip payment date. All of the plans that contain this benefit have a 7-30 day waiting period from the time of purchase before becoming effective. Typically, if you purchase travel insurance directly through a travel supplier such as an airline, cruise line, or tour operator, you cannot protect yourself should that travel supplier go bankrupt or become financially insolvent, so it is always best to purchase your travel insurance protection from a third-party source.
10. Travel agent vs. Tour Operator: A Travel Agent is someone who books flights, cruises and tours. A Tour Operator is a company which specializes in the organizing and operation of pre-planned vacations which are usually sold to the public through travel agents.

Established in 2000, is the leading, consumer-oriented online travel insurance aggregator worldwide. Featuring insurance comparisons from the top industry providers, is a unique, one-stop resource designed to meet consumers' comprehensive travel insurance needs all in a secure environment. also specializes in providing integrated technology solutions for the travel insurance industry, with over 2,000 private-labeled and co-branded travel-related websites around the globe. is headquartered in Warwick, RI with additional offices and data centers in Connecticut and Oregon.

The next time you plan a trip, Cruise Diva suggests you check out for your travel insurance and peace of mind.


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Unknown said...

Thanks for the post Linda that was a really enjoyable read and raised some interesting terms. To be honest I have been quite slack with travel insurance when I travel abroad which has been a little stupid to say the least, especially when you can lose luggage, passports etc. Me and my partner are planning to go abroad for a week in October as we haven't been able to manage a holiday this year so far. I've decided to go with a company I have heard of before called insurefor travel insurance mainly because they were cheap but I did take a look at a lot of what they cover. I must say I feel a lot more peace of mind now to.

Unknown said...

Wonderful tips you have shared through this post. I am sure that these will help one to get a cheap flight and travel and that too in an easier, cheaper and safer way.

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