Travel Insurance Trend on the Upswing

It seems that every time the economy takes a nosedive, business for certain industries drop while others relating to the industry soar. That is the case with the travel industry as well as others; while the cruise industry is seeing fewer people booking cruises, the travel insurance industry is experiencing an unusual boom, as more people purchase travel insurance.

What is causing this increase in travel insurance policies being sold? One website that offers comparison shopping for travel insurance says that although fewer people are traveling, more of those are buying insurance than ever before. And it isn’t just any travel insurance; these individuals are seeking “layoff” insurance; guaranteeing a reimbursement should they need to cancel their travel due to a loss of a job.

Before signing on the dotted line, however, some careful perusal of the travel insurance policy is necessary. Some policies state that you must have been employed for a specific period of time before qualifying under the layoff coverage. Others may cover “work situations’ that do not include layoffs at all. It is important to find an insurance policy that meets your unique needs, so read carefully the plan details before committing to one. An additional safeguard before purchasing the policy is to check the stability rating of the company selling the insurance. Many insurance companies are facing financial problems, so knowing they are solvent as opposed to teetering on the brink of going under is important. Checking with the Better Business Bureau or www.ustia.org can also make sure the company is legitimate.

While there is no definite way to measure how many of the policies being sold are due to the coverage of layoff insurance, there are certainly more people asking about the coverage than ever before. It is a relatively new addition to policies, having only been available for about a year but has naturally increased in popularity in the stressed economic atmosphere.

As with any purchase, proceed with caution before committing to travel insurance. Make sure the policy coverage fits your needs, the company is legitimate and solvent and, if layoff is a concern, that layoff coverage is indeed included in the wording. Once you’ve found the perfect fit, you will be able to go forward with an easy mind on vacation plans.