Have You Only Put Down a Deposit for a Trip?

Here are Reasons and Benefits to Insuring That Deposit

Traveling is an exciting adventure filled with new experiences and unforgettable memories. However, unforeseen circumstances such as trip cancellations or interruptions can put a damper on your plans and result in financial losses. This is where travel insurance comes in, offering protection and peace of mind. One crucial aspect of travel insurance that often gets overlooked is insuring your deposit.

Locking in Time-Sensitive Benefits

Most plans require the purchase of the policy within 14 days (some within 10 days and other plans go up to 20 days) of your initial trip deposit.

1. Waiver of Pre-Existing Conditions: Individuals with medical histories need to act swiftly to secure a waiver for pre-existing conditions. This coverage is essential if a pre-existing health issue becomes a reason for trip cancellation.

2. Cancel for Any Reason (CFAR) Policy: For those seeking maximum flexibility, the CFAR policy is a game-changer. This option allows travelers to cancel for any reason, including personal decisions like fear of travel. However, it must be purchased within a specific time window.  **This does not cover if the travel carrier decides you won’t be going by cancelling the trip completely

3. Financial Default of a Common Carrier: Protecting against the financial default of travel suppliers is a crucial aspect of travel insurance. To ensure coverage, start your policy during the designated time-sensitive period.

4. Future Medical Situations: No one can predict the future, and medical situations may arise unexpectedly. Locking in insurance early safeguards against unforeseen health issues that might force trip cancellations.

Key Advantages

1. Avoiding Over-Insurance Risk: When booking a tour or cruise, a small deposit is usually required upfront. By insuring your deposit, you most likely no longer at risk for over insuring should your total trip cost decrease.

2. 10-Day Free Look Period: Many insurance carriers strictly enforce a "10-day free look period," during which travelers can receive premium refunds. Beyond this window, adjustments to coverage become limited. Locking in insurance early ensures flexibility during the crucial initial days of planning.

3. Age-Dependent Premiums: Travel insurance premiums are often age-dependent. Purchasing insurance early, especially for older travelers, secures rates based on the current age, preventing potential premium increases due to age changes before departure.

Example:  A 65-year-old individual is planning a trip with a total cost of $10,000, and they've already paid a $500 deposit. The full insurance premium for their trip amounts to $522. Opting to insure the deposit would cost them $60, giving them the above benefits and leaving a remaining balance of $462 for the comprehensive coverage. Whether or not the remaining balance is paid in full or in increments, with each payment made towards the balance, they would call us to increase the insured trip cost. As the payments are made towards the trip, the traveler is responsible to call us or use the change request form within 7 days of any additional payment to increase the trip cost on the established policy.