Fixed benefit and Comprehensive US travel insurance
Before comparing the popular US travel insurance plans, you need to understand the difference between Fixed and Comprehensive plans. Following are some of the important US travel insurance terminologies that you should focus on:
Fixed benefit Travel insurance plans
- Premium : This is the cost or the charge that you pay while you make the purchase of a plan.
- Deductible : This is a small amount starting with 50 and can go up to as high as 2000 which is the amount that the insured pays before the insurance company starts paying for claim expense. This can be per injury/sickness or it could be per policy period.
- Co-Insurance : This is a percentage amount that the insured pays after the deductible is satisfied, up to certain limit after which the insurance company pays 100%. Usually this would be 10-20%.
- Policy maximum : This is the maximum amount a policy can pay in any kind of urgent emergency situation.
are also known as scheduled benefit plans. They are limited in their coverage. They are low priced and highly economical and are attractive for the customers. Taking a deeper look, Fixed plans set a fixed amount for each and every benefit. Co insurance is not applicable to these plans as they do not pay any percentage amount for the benefits provided. Policy maximum values for these plans are generally $50,000 and $100,000, but the claims are not paid up to the policy maximum for every benefit.
Ex: Let us say that the doctor visit charge is $250, and the deductible is $50 and the plan has a set amount of $55 for doctor visit.
For the first visit the customer needs to satisfy the deductible. Therefore, the insurance company will pay $5 and the customer has to pay $245 out of his pocket. If the deductible for the plan is a per injury/sickness deductible, then for each new doctor visit the deductible has to be satisfied.
For the next visit, if the doctor bill is $250, then the insurance company will pay the set amount of $55 as the deductible is satisfied and the customer is responsible for the rest $195.
Here is a list of some popular fixed plans from different companies which people buy when they visit the US.
The plans that provide medical coverage for acute onset of pre existing conditions
for people above 70 are, Safe Travels visitors to the US and the INF plans. Visitors Care from IMG provides only $2500 coverage for people above 70 for acute onset of pre existing conditions.
Comprehensive travel insurance plans
on the other hand, offer coverage up to the policy maximum for every benefit. There is a co insurance factor applicable with these plans, where the customer pays a set percentage of the claim expense after the deductible up to certain limit, after which the insurance company will pay 100% of the expense incurred.
For instance, if you have a plan with deductible $100 and the co insurance is 20%.
Let's say expense incurred is $1000. Then here is how the claim expense will be calculated:
The customer need to satisfy the deductible of $100. Therefore with the remaining $900, the customer will pay 20% of $900 which is $180 and the insurance company will pay $720. For the next claim, the deductible is satisfied and customer will have to pay the percentage co insurance only. This will go on up to certain dollar limit which is usually $5000. Once the expense crosses this limit, the company will pay 100%.
Here is the list of the plans:
You can Compare Travel insurance
by getting quote. However, inspite of many plans available for visitors, having a closer look at the benefits of each plan will help to make better decision in order to meet the requirements of the customer.