Top Travel Medical Insurance Terms You Need To Know

Insurance

Travel Medical Insurance Terms

Understanding travel medical insurance terms is crucial for ensuring you have the right coverage and can navigate your policy effectively. This guide will introduce you to the essential vocabulary you’ll encounter when reviewing travel medical insurance policies.

Whether you’re a seasoned traveler or planning your first trip abroad, familiarizing yourself with these key travel medical insurance terms will help you make informed decisions, maximize your benefits, and handle any medical emergencies with confidence while on your journey.

In this guide, we break down the top travel medical insurance terms you need to know, providing clear explanations and practical examples to help you navigate your coverage options with confidence.

Table of Contents

Here Are The Key Travel Medical Insurance Terms Explained With Short Examples:

Here is an explanation of some travel medical insurance terms commonly used in travel medical insurance policies:

Key Travel Medical Insurance Terms:

1. Policy Maximum

Policy Maximum is the highest amount the insurance will pay for covered expenses.

Example: Your policy maximum is $100,000
If your medical expenses total $120,000
The insurance pays $100,000, and you pay the remaining $20,000

2. Out-of-Pocket Costs

Out-of-Pocket Costs are expenses you pay yourself because they are not covered by the policy.

Example: You have a $500 deductible, 20% coinsurance, and a $30 copay for doctor visits. These amounts are your out-of-pocket costs.

3. Deductible

Deductible is the amount you pay before insurance coverage begins.

Example: Your deductible is $500. If you have a $2,000 hospital bill, you pay $500, and the insurance covers the remaining $1,500.

4. Coinsurance

Coinsurance is the percentage of costs you pay after the deductible is met.

Example: After paying your $500 deductible, you have a $1,000 medical bill. With 20% coinsurance, you pay $200, and the insurance covers $800.

5. Copay (Copayment)

Copay is a fixed fee for specific services.

Example: Your policy has a $30 copay for doctor visits. Every time you see a doctor, you pay $30 at the time of the visit.

6. Exclusions

Exclusions are conditions or services not covered by the policy.

Example: Your policy excludes coverage for injuries from extreme sports. If you get hurt while skydiving, your medical expenses are not covered.

7. Pre-Existing Conditions

Pre-Existing Conditions are medical conditions you had before buying the policy.

Example: You have diabetes, a pre-existing condition. If your policy excludes pre-existing conditions, it won’t cover diabetes-related treatments.

8. Emergency Evacuation

Emergency Evacuation covers the cost of transport to the nearest medical facility.

Example: You break your leg hiking in a remote area. The insurance covers the helicopter transport to the nearest hospital.

9. Repatriation Of Remains

Repatriation of Remains covers transporting your remains home if you die while traveling.

Example: If you pass away abroad, the insurance pays to have your body prepared and flown back to your home country.

10. Network Providers

Network Providers are healthcare providers with agreements with your insurer.

Example: Your insurance has a network of hospitals. Visiting an in-network hospital means lower costs for you compared to an out-of-network hospital.

11. Travel Assistance Services

Travel Assistance Services help with travel-related issues.

Example: You lose your passport abroad. The assistance service helps you get a replacement and find nearby embassies.

12. Trip Interruption

Trip Interruption reimburses non-refundable trip costs if the trip is cut short.

Example: You have to return home early due to a family emergency. The insurance reimburses you for the unused portion of your hotel stay.

13. Trip Cancellation

Trip Cancellation reimburses non-refundable trip costs if you cancel before departure.

Example: You cancel your trip due to a sudden illness. The insurance reimburses you for the non-refundable airline tickets.

14. Trip Delay

Trip Delay covers additional expenses due to a delayed trip.

Example: Your flight is delayed overnight. The insurance pays for your hotel stay and meals during the delay.

15. Accidental Death And Dismemberment (AD&D)

Accidental Death and Dismemberment (AD&D) pays a benefit if you die or lose a limb in an accident.

Example: You lose a limb in a car accident while traveling. The policy pays a specified amount for the loss.

16. Hospitalization Coverage

Hospitalization Coverage pays for hospital stays and related expenses.

Example: You are hospitalized for a severe illness while traveling. The insurance covers the cost of the hospital stay and treatment.

17. Medical Evacuation

Medical Evacuation covers the cost of transport to the nearest medical facility for treatment.

Example: You have a heart attack while on a cruise. The insurance covers the cost to airlift you to the nearest hospital on land.

18. Medical Repatriation

Medical Repatriation covers the cost of returning you home for continued medical treatment.

Example: After an accident, you need specialized care not available locally. The insurance pays to transport you back to your home country for treatment.

19. Emergency Reunion

Emergency Reunion covers travel expenses for a family member to join you if you are hospitalized.

Example: You are hospitalized abroad for a week. The insurance pays for your spouse to travel and stay with you.

20. Return Of Minor Children

Return of Minor Children covers the cost to return your children home if you are hospitalized.

Example: You are hospitalized, and your children are traveling with you. The insurance pays for their return flight home.

21. Return Of Travel Companion

Return of Travel Companion covers travel expenses for a companion to return home if you are hospitalized.

Example: You are hospitalized abroad. The insurance covers the cost for your travel companion to return home.

22. Baggage Loss/Delay

Baggage Loss/Delay reimburses for lost or delayed luggage.

Example: Your luggage is delayed for two days. The insurance reimburses you for essential items you need to buy in the meantime.

23. Travel Delay

Travel Delay reimburses expenses due to travel delays.

Example: Your flight is delayed for 12 hours. The insurance covers your meal and hotel expenses during the delay.

24. 24-Hour Assistance Hotline

24-Hour Assistance Hotline provides round-the-clock help for travel emergencies.

Example: You lose your wallet abroad. You call the hotline for assistance with getting emergency cash and replacing your documents.

25. Acute Onset Of Pre-Existing Conditions

Acute Onset of Pre-Existing Conditions covers sudden and unexpected recurrences of pre-existing conditions.

Example: Your pre-existing asthma suddenly worsens during your trip. The insurance covers the emergency treatment.

26. Emergency Medical Expenses

Emergency Medical Expenses cover costs for sudden illnesses or injuries.

Example: You break your arm while traveling. The insurance covers the medical treatment and hospital fees.

27. Urgent Care

Urgent Care covers medical services at urgent care facilities for non-life-threatening issues.

Example: You get a severe flu while abroad. The insurance covers your visit to an urgent care clinic.

28. Routine Care

Routine Care covers preventative and routine medical services.

Example: You need a routine physical exam while traveling. The insurance covers the cost of the exam (if included in the policy).

29. Coverage Period

Coverage Period is the duration your policy is active.

Example: Your policy starts on June 1 and ends on June 30. You are covered for any medical issues (as declared in the policy) that arise during this period.

30. Policy Holder

Policy Holder is the person who purchases the insurance policy.

Example: You buy a travel medical insurance policy for yourself. You are the policyholder.

31. Beneficiary

Beneficiary is the person who receives benefits in the event of your death.

Example: You designate your spouse as the beneficiary. They will receive the benefits if you pass away during the trip.

32. Premium

Premium is the amount you pay for the insurance policy.

Example: You pay $100 for a travel medical insurance policy. This amount is your premium.

33. Underwriter

Underwriter is the company that issues and assumes the risk of the policy.

Example: An insurance company evaluates your application and issues your travel insurance policy.

34. Claim

Claim is a request for payment from the insurance company for covered expenses.

Example: You submit a claim for $1,000 in medical expenses incurred during your trip. The insurance reviews and reimburses you for the covered amount.

35. Waiver Of Premium

Waiver of Premium allows you to stop paying premiums under specific conditions.

Example: You become disabled during your trip. The waiver of premium allows you to maintain coverage without paying further premiums.

36. Excess Insurance

Excess Insurance provides additional coverage beyond your primary policy.

Example: Your primary policy covers up to $50,000 in medical expenses. Your excess insurance policy covers any amount beyond that up to a higher limit.

37. Primary Insurance

Primary Insurance is the first policy to pay out claims.

Example: Your travel medical insurance is your primary insurance. It pays for your medical expenses before any other policies.

38. Secondary Insurance

Secondary Insurance pays after the primary insurance has paid its share.

Example: Your primary insurance covers $10,000 of a $15,000 medical bill. Your secondary insurance covers the remaining $5,000.

39. Subrogation

Subrogation allows the insurer to seek reimbursement from a third party that caused the loss.

Example: You are injured in a car accident caused by another driver. Your insurer pays for your medical expenses and then seeks reimbursement from the other driver’s insurance.

40. Coordinated Benefits

Coordinated Benefits ensure multiple policies work together so you don’t receive more than 100% of expenses.

Example: You have two travel insurance policies. Coordinated benefits make sure both policies share the cost so you are fully reimbursed but not overcompensated.

41. Single Trip Policy

Single Trip Policy covers one specific trip.

Example: You purchase a policy for your two-week vacation to Europe. It only covers you during those two weeks.

42. Multi-Trip Policy

Multi-Trip Policy covers multiple trips within a specified period, usually a year.

Example: You travel frequently for work. This policy covers all your trips within the year, up to 30 days per trip.

43. Annual Policy

The annual Policy covers all trips taken in a year.

Example: You buy an annual policy covering all trips you take in a year, each trip up to 60 days long.

44. Coverage Territory

Coverage Territory specifies where the policy provides coverage.

Example: Your policy covers you worldwide except in the United States. You are covered for medical expenses anywhere else.

45. Extension Of Coverage

Extension of Coverage allows you to extend your policy if your trip is unexpectedly extended.

Example: Your trip is extended by a week due to flight cancellations. You extend your policy to cover the additional days.

46. Beneficiary Designation

Beneficiary Designation is the process of naming a person to receive the policy benefits.

Example: You name your child as the beneficiary. They will receive the benefits if you die during the trip.

47. Grace Period

Grace Period is extra time after the premium due date to pay without losing coverage.

Example: Your premium is due on June 1, but you have a 10-day grace period. You pay on June 9 and retain your coverage.

48. Effective Date

Effective Date is the start date of your policy coverage.

Example: Your policy starts on June 1. You are covered for any medical issues starting from this date.

49. Expiration Date

Expiration Date is the end date of your policy coverage.

Example: Your policy ends on June 30. After this date, you are no longer covered for medical issues.

50. Renewal Policy

Renewal Policy allows you to extend your coverage for another term.

Example: Your policy expires on June 30. You renew it for another month to cover your extended trip.

51. Cancellation Policy

Cancellation Policy outlines the terms for canceling your policy.

Example: You cancel your policy before it starts and receive a full refund as per the cancellation policy terms.

52. Fraudulent Claims

Fraudulent Claims are false claims made to receive benefits.

Example: Someone claims for medical treatment they never received. The insurer investigates and denies the claim.

53. Medical Necessity

Medical Necessity refers to treatments required to diagnose or treat an illness or injury.

Example: Your doctor prescribes surgery for a broken leg. The insurance covers it as a medically necessary procedure.

54. Physician

A physician is a licensed medical professional authorized to provide medical care.

Example: You see a physician for a medical issue while traveling. The insurance covers the consultation.

55. Specialist Care

Specialist Care is treatment provided by a medical specialist.

Example: You need to see a cardiologist for heart issues while abroad. The insurance covers the specialist consultation.

56. Outpatient Treatment

Outpatient Treatment involves medical services provided without an overnight hospital stay.

Example: You receive stitches at a clinic and go home the same day. The insurance covers this outpatient treatment.

57. Inpatient Treatment

Inpatient Treatment involves staying in the hospital overnight or longer.

Example: You are admitted to a hospital for surgery and stay for three nights. The insurance covers the inpatient treatment.

58. Chronic Conditions

Chronic Conditions are long-term medical conditions requiring ongoing management.

Example: You have asthma, a chronic condition. Coverage for asthma treatment varies by policy.

59. Critical Illness

Critical Illness refers to severe, life-threatening conditions like cancer or heart attack.

Example: You have a heart attack while traveling. The policy covers medical treatment for this critical illness.

60. Experimental Treatments

Experimental Treatments are not widely accepted as standard practice.

Example: You want to try a new, unapproved cancer treatment. The insurance does not cover this experimental treatment.

61. Vaccinations And Immunizations

Vaccinations and Immunizations are preventive treatments for diseases.

Example: You get a flu shot before traveling. The insurance may cover this preventive vaccination.

62. Telehealth Services

Telehealth Services provide medical consultations remotely.

Example: You have a video call with a doctor about a minor issue. The insurance covers this telehealth consultation.

63. Mental Health Coverage

Mental Health Coverage includes services for mental health conditions.

Example: You need therapy while traveling. The insurance covers the mental health treatment.

64. Dental Coverage

Dental Coverage pays for dental care, especially in emergencies.

Example: You break a tooth while traveling. The insurance covers the emergency dental treatment.

65. Vision Coverage

Vision Coverage includes eye care services.

Example: You need a new pair of glasses while traveling. The insurance may cover part of the cost.

66. Prescription Medication Coverage

Prescription Medication Coverage pays for prescribed drugs.

Example: You need antibiotics for an infection. The insurance covers the prescribed medication.

67. Sports And Adventure Coverage

Sports and Adventure Coverage covers injuries from high-risk activities.

Example: You get injured while skiing. The insurance covers the medical expenses if you have this optional coverage.

68. War And Terrorism Exclusion

War and Terrorism Exclusion excludes coverage for injuries from acts of war or terrorism.

Example: You are injured in a terrorist attack. The policy does not cover these injuries due to the exclusion.

69. Pandemic And Epidemic Exclusion

Pandemic and Epidemic Exclusion excludes coverage for outbreaks of diseases.

Example: You contract an illness during a pandemic. The policy may not cover treatment due to this exclusion.

70. Family Coverage

Family Coverage extends benefits to family members traveling with you.

Example: You buy a policy that covers your spouse and children on the trip.

71. Dependent Coverage

Dependent Coverage includes coverage for dependents.

Example: Your policy covers your elderly parent traveling with you.

72. Dispute Resolution

Dispute Resolution outlines how to resolve disagreements with the insurer.

Example: You and the insurance company disagree on a claim. The policy outlines steps for mediation or arbitration.

Some Terms Relevant To Trip Insurance Only

73. Cancel For Any Reason (CFAR)

Cancel for Any Reason (CFAR) allows cancellation for any reason not covered by standard policies.

Example: You cancel your trip because you decide not to go. CFAR reimburses a percentage of the non-refundable costs.

74. Interrupt For Any Reason (IFAR)

Interrupt for Any Reason (IFAR) allows trip interruption for any reason not covered by standard policies.

Example: You interrupt your trip because you want to return home early. IFAR reimburses a percentage of the non-refundable costs.

These are some of the travel medical insurance terms, This is not a complete list of the travel medical insurance terms, for a complete list and explanation of terms covered by your travel insurance plan or policy refer to your policy document.

What Is Travel Medical Insurance?

Definition And Purpose Of Travel Medical Insurance

Travel medical insurance provides emergency medical coverage while traveling abroad.
It’s different from comprehensive travel insurance, which covers more than just medical emergencies.

Benefits Of Travel Medical Insurance

Investing in a travel medical insurance policy offers several benefits.
Without travel medical insurance, you’ll be handling unexpected expenses on your own.
Travel medical insurance can help fill in the gaps and provide additional coverage to keep you safe and healthy on your trip.

What’s Covered By Travel Medical Insurance?

Emergency medical expenses, including medical evacuations
Emergency dental expenses
Accidental death or dismemberment
24-hour emergency assistance
Trip interruption
Baggage loss
And more….

Understanding Most Commonly Used Travel Insurance Terms

Claim And Benefits

A claim is a request for reimbursement due to a loss.
Benefits include any expenses that are covered by your insurance.

PPO/Provider Network

A provider is another word for a medical doctor, facility, or company that provides medical services.
A Preferred Provider Organization (PPO) or Provider Network is a group of providers that are contracted with the insurance company.

Coinsurance, Copayment, And Deductible

Coinsurance is a payment you share with the insurance company.
A copayment is the amount of money you pay for each visit upfront for a certain type of treatment.
A deductible is the amount you pay before the insurance company pays on your claim.

The Medical Coverage Explained

Primary vs. Secondary Medical Coverage

Primary health insurance in your home country is designed to be the first payor of claims.
Travel insurance is often a secondary payor of claims.

Medical Maximum And Premium

The medical maximum is the amount the insurance company pays for a covered sickness or injury.
An insurance premium is the cost or price of your insurance.

Travel Insurance Timeframes

Period Of Coverage

Your period of coverage is the length of time you have coverage under your plan.

Benefit Period

Your benefit period is the time you have to complete treatment.

Date Of Service

The date of service is when you received medical treatment.

Types Of Travel Insurance Plans

Single-Trip vs. Multi-Trip Travel Insurance

Single-trip medical travel insurance: covers one trip
Multi-trip medical travel insurance: covers multiple trips within a year

Primary vs. Secondary Travel Insurance Coverage

Primary coverage is submitted before secondary coverage
Secondary coverage is submitted after primary coverage

Credit Cards With Travel Medical Insurance

What’s Included And What’s Not

Some credit cards offer emergency medical coverage
Check the terms and conditions to see what is covered

Who Needs Travel Medical Insurance?

Expats And Long-Term Travelers

Long-term international travel health insurance plans are available for expats and frequent business travelers

International Travelers

If you plan on traveling and your existing medical insurance will not cover you in the country you are traveling to

Cost And Coverage Of Travel Medical Insurance

How Much Does Travel Medical Insurance Cost?

The cost varies based on factors such as the country you’re going to, your age, and the state you’re from
Typically, it’s 7% of your overall trip cost

Eligibility And Purchase

Do I Need To Have Primary Health Insurance In The U.S. To Be Eligible?

Some travel medical insurance plans require primary health insurance in the U.S.

How To Purchase Travel Medical Insurance

Search for medical travel policies on insurance comparison sites
Verify that the state you reside in offers travel medical insurance

Using Your Travel Medical Insurance

Terminology And Key Concepts

Exclusions: specific events that are excluded from coverage
Limits: monetary caps on coverage
Deductible: an amount you need to pay before your policy will reimburse

How To File a Claim

Contact your travel insurance provider about how to proceed if you encounter a medical emergency
Pay for medical expenses using your credit card and subsequently file a claim for reimbursement

Conclusion

Understanding these travel medical insurance terms can help you choose the right travel medical insurance policy for your needs and ensure you are adequately covered during your travels. Safe travels!