Travel Insurance Terms Explained

The terminology used within travel insurance industry can be a bit confusing for people. This is why we decided to clear up some of the confusion by giving you a simple explanation of some of the most commonly used insurance terms.


A policy beneficiary is a person who actually uses all the benefits under an insurance plan. A beneficiary can also refer to a person who will receive death benefits when the insured person dies.


An insurance broker can help you find the policy that meets your specific needs. Often, insurance broker act as an intermediary between the insured person and the insurer. Essentially, brokers act in the best interest of the customer.


An insurance claim is a demand you make for reimbursement from your insurer under the terms of the insurance policy. In order to get reimbursement for expenses you will have to submit a formal claim to your insurer.


Coverage determines the amount of risks you are insured against. Of course, it’s important to note that there are many different coverage types available. In general, coverage varies from one insurance company to another.


Deductible (also known as a policy excess) is a specified amount the insured person must pay before the insurance company begins to pay its share. For instance, if you have a plan with a $250 deductible, you will pay the first $250 out of pocket. Let’s say your treatment costs are $500, then you will need to pay $250 and your insurer will cover the remaining costs. Keep in mind that deductibles vary widely among insurers.


The policyholder or the policy owner is a person who buys the insurance policy and pays the premium. The policy owner may or may not be the insured. For example, Maria is free to buy the policy for her husband Tom, in that case, the policyholder is Maria and her husband is the insured, which means he is the only one who will receive benefits under the terms of an insurance policy.

Pre-existing Medical Condition

A medical condition or a health problem that existed before an insurance policy was taken out. Each insurance company has different terms and regulations for pre-existing medical conditions. Generally, the costs of treatment for clients with pre-existing conditions are not covered by travel insurance. Common pre-existing medical conditions are:

– diabetes

– cancer

– respiratory problems

– high blood pressure

– high cholesterol


A premium is the amount of money an insured person have to pay to the insurance company for the insurance policy. The price of the premium can vary depending on the insurance policy you choose. It is worth mentioning that your monthly costs will be lower if you choose a higher deductible, but in that case, the level of your protection will be lower and potentially in case of an accident you will be exposed to higher expenses.


Reimbursement or compensation is the amount of money an insurance company will pay you for medical treatment or hospital costs you have already paid.


Repatriation is a process of bringing the insured back to his or her home country. Usually, there are two kinds of repatriation:

– Medical repatriation

– Repatriation of remains


Subrogation means that the insurance company has paid its insured for injuries/damages caused by a third party. If the injury was caused by a third party, the insurer can still sue the third party to recover the lost money.

If there is a term you are still unfamiliar with, please feel free to contact us! We will respond to you as soon as possible.

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