Travel Insurance Glossary

Accident: An unexpected and unfortunate event occurring during the Insured period.

Accidental Death & Dismemberment: An insurance policy which pays a specified amount or a specified multiple of the insured's benefit if the insured dies, loses his/her sight, or loses two limbs due to an accident.

Agent: An authorized representative of an insurance company who has license to market insurance products.

AM Best Rating: The A.M. Best Company, is considered the most authoritative source of Insurance company information. The company provides comprehensive data to insurance professionals. Founded in 1899 by Alfred M. Best, A.M. Best is the world's oldest source of insurance company ratings and information. Its Best's Ratings are the industry's standard measure of insurer financial performance.

Please note these ratings are assigned to usually the insurance underwriters of the policies you purchase and not to the policy or the policy administrator or the insurance agent.

Following are various AM Best ratings: A++ : Superior
A+  : Superior
A   : Excellent
A-  : Excellent
B++ : Very Good
B+  : Very Good
B   : Fair
B-  : Fair
C++ : Marginal
C+  : Marginal
C   : Weak
C-  : Weak
D   : Poor
E   : Under Regulatory Supervision
F   : In Liquidation
S   : Rating Suspended

Assignee: The assignee is the beneficiary for the policy and is entitled to receive the benefits of the policy.

Assignment: The legal transfer of the rights and benefits of an insurance policy from one person to another.

Adventure Sports Coverage: Adventure sports coverage in travel insurance includes protection for high-risk activities such as bungee jumping, skydiving, and mountain climbing. It covers medical expenses, emergency evacuations, and trip interruptions related to injuries from these activities.

Acute on set of Pre-existing condition: The "Acute Onset of a Pre-Existing Condition" is a sudden and unexpected outbreak or recurrence of a pre-existing medical condition which occurs without any advance warning either in the form of physician recommendations or symptoms and requires immediate care (within 24 hours of first symptoms). A Pre-Existing Condition that is a chronic or congenital condition or that gradually becomes worse over time will not be considered acute onset.

Assistant Surgeon: It may provides coverage for the charges accrued for an assistant surgeon for a medically required surgery.

Anesthesia: Anesthesia typically refers to service that provided to patients undergoing surgical or non-surgical procedures that may requires the administration of an anesthetic

Beneficiary: Person(s) designated by the insured(s) that would receive the proceeds of an insurance policy upon death of the insured. You would typically assign a beneficiary at the time of completing the policy application.

Benefit: Amount an insurance company pays to a claimant, assignee or beneficiary when the insured suffers a covered loss, injury, accident etc.

Benefit Period: Benefit Period is the maximum time period up to which the plan will pay benefits for any one eligible condition. Some policies have a 12 month while others have a 6 month benefit period; usually this period can extend beyond the date of policy expiration.

Baggage Delay: Baggage delay provides reimbursement for essential items purchased while waiting for delayed luggage to arrive. This can include clothing, toiletries, and other necessities. The coverage usually kicks in after a specified delay period, such as 12 or 24 hours, and has a maximum limit.

Bedside visit: Provide coverage for pre-approved costs and expenses incurred in respect of travel by a relative or friend to visit the insured where there has been a medical emergency.

Border Entry Protection: Border Entry Protection helps if you're denied entry into a country. It covers costs like returning home, extra accommodations, or other expenses if you're turned away due to issues like missing documents or visa problems, providing peace of mind in unexpected situations.

Cap: The maximum amount an insured will pay for covered medical bills in any one year. A cap is reached when out-of-pocket expenses, including the annual deductible and coinsurance payments, total a specific amount stated in the insurance policy.

Carrier: Insurance company that actually underwrites and issues the insurance policy. The term refers to the fact that the company carries (or assumes) certain risks for the policyholder.

Certificate of Coverage: A statement of coverage, also known as a Certificate of Insurance, that an individual receives when insured under a group contract. The certificate serves as proof of insurance, and outlines benefits and provisions.

Certificate of Insurance: A written document issued to individuals insured mentioning the essential provisions covered under the policy.

Claim: Request by the insured(or his/her provider) to an insurance company to pay for services obtained from a health care provider. The claim is usually submitted in a pre-determined format or a claim form.

COBRA (Consolidated Omnibus Budget Reconciliation): Regulations requiring an employer who employs more than 20 people to offer continued group insurance coverage to former employees for up to 18 months. If the employee dies, the employer must offer continued group health insurance coverage to widowed spouses and dependent children for up to 36 months.

Co-Insurance: After paying the deductible, percentage or amount of covered expenses that the insured pays.

For example, an insurance policy brochure may mention that the policy will pay 80% of the first $5,000 and 100% thereafter of the usual and customary charges; In some health insurance plans, it is also called "co-payment".

e.g., Suppose you buy insurance policy with $50,000 policy maximum, $250 deductible per policy period and 80/20 co-insurance for the first $5000 and 100% coverage thereafter. Suppose you incur covered expense of $10,250. You pay first $250 deductible; then out of the remaining $10,000 covered expenses, you pay 20% of the first $5000 (i.e., $1000); the insurance policy pays for the remaining expenses (i.e. $9,000).
That means, you pay $250 + $1000 = $1250 total; and insurance company pays $4000 + $5000 = $9000.

Coinsurance Clause: A provision which states that the insured and the insurance company will share the losses covered by the policy in a proportion as agreed upon in advance.

Common carrier: A vehicle or service licensed to carry passengers for hire on a regularly scheduled basis. Good examples are airplanes, trains etc.

Common carrier AD&D beneficiary: If the insured person gets into an accident(while in plane for example), either loses hand, foot, eye etc. or dies, the insurance company will pay money. You should specify enter the name of the relative to whom that money should go to (in case of death) as 'Common Carrier AD&D Beneficiary'. That is usually close relative like son, daugther, son-in-law etc. If you are buying insurance for your mother and father both, please do not put any of their names in the beneficiary. This question is for who should that money go to in case both die.

Comprehensive Policy: A policy plan that provides the insured a package of health care services, including preventive care, routine physicals, immunization, outpatient services and hospitalization.

Copay: A predetermined flat fee that the insured pays for healthcare services, in addition to what the insurance covers. Copay is usually not specified in percentage of the total healthcare cost. e.g., you pay $10 for a visit to the doctor's office, no matter how much the doctor's office visit charge is.

Coverage period: In most plans, insurance coverage can be purchased in the combination of monthly and/or 15 days increments to suit your needs. e.g., for a trip of 3.5 months, you can choose 3 monthly increments and one 15 days increment. Effective date for insurance coverage can be the date of departure from home country, or it can be any other later date specified by insured. It is wise to have the insurance effective date same as the date when you depart from home country for the destination and end date same as the date you arrive back in the home country so that you will be covered for any medical emergencies(for covered expenses) even during your journey.

Covered Expenses: The Expenses that an insurance company agrees to pay the insured as per the terms and conditions mentioned in the policy.

Covid coverage: COVID-19 coverage in travel insurance includes medical expenses for treatment if you contract the virus while traveling, emergency medical evacuation, and sometimes trip cancellation or interruption due to COVID-19.

Chemotherapy: Refers to a specific types of cancer treatment options.Chemotherapy is a process in which drugs are used to treat cancer. Radiation Therapy involves the use of waves to destroy cancer cells.

Chiropractic Care: It typically refers to services provided by Chiropractor and my involve the use of hands on aspinal manupulation and other alternative treatments.

CFAR: Cancel for any reason (CFAR) insurance gives a traveler the ability to cancel a trip for any reason a still receive partial reimbursement for any non-refundable trip expenses..

Deductible: Amount to be paid by the insured person before the insurance company begins to pay for the covered expenses. Deductible may be either per sickness/injury or once per policy period or once per year depending upon the insurance policy you purchase. You will not get receive any reimbursement later from insurance company for the deductible you pay.

e.g., Let us consider that you have purchased an insurance policy with a $50,000 policy maximum, $250 deductible per policy period and 80/20 co-insurance. Suppose you incur a covered expense of $10,250; then the insurance company will pay the covered expenses according to policy terms after you make a a payment of the deductible (i.e. $250).

Denial of claim: Refusal by an insurance company to honor a a request by an insured (or his/her healthcare provider) to pay for healthcare services. This would usually be due to pre-existing conditions.

Disability: Physical or mental condition that prevents a person from performing his/her occupational duties temporarily or permanentely resulting from an injury or sickness..

Dismemberment: Accidental loss of hands, legs, ears and eyes.

Durable medical equipment: Provide coverage for medically necessary equipment designed to provide benefits to the insured due to certain medical conditions or illness. Example: Hospital bed or wheel chair.

Effective date: It is the Date when insurance coverage begins.

Emergency evacuation: Coverage for emergency medical evacuation to the nearest qualified medical facility or the country of residence, as determined by the insurance compnay; expenses for reasonable travel and accommodations resulting from the evacuation; and the cost of returning to either the countgry of residence or the country where the evacuation occured, up to resonable maximum limit.

Emergency reunion: Emergency reunion coverage for certain maximum amount, and for certain maximum duration such as 15 days, for the resonable travel and lodging expenses of a relative or friend during an emergency medical evacuation: generally either the cost of accompanying the insured during the evacuation or traveling from the country of residence to be reunited with the insured.

Endorsement: It is a written document attached to an insurance policy which alters the either the policy coverage or the terms and conditions of the policy. Also called as rider.

Exclusions: Healthcare services not covered by an insured's health insurance policy. This would usually be due to pre-existing conditions or due to the limitation of the insurance plan.

Expiration: The date specified in the policy as the date of termination.

ETIAS: US travelers to Europe should apply for an ETIAS (European Travel Information and Authorization System). ETIAS is not a visa, but a pre-travel clearance for short stays up to 90 days in Europe.

Emergency Dental Coverage: Coverage includes treatment for urgent dental issues and dental injuries that require immediate care. It covers the costs up to a specified limit in the policy.

Extended care facility: Provide coverage for the insured's medically necessary stay in an institution which is a licensed hospital or rehabilitation facility that regularly engages in skilled nursing care and planned treatment..

Emergency eye examination: Emergency eye examination refers to an eye examination carried out, in circumstances that in the professional judgement of an ophthalmic medical practitioner or optician constitute an emergency.

Emergency local ambulance: Provides coverage for local transportation and accompanying treatment provided by designated, licensed qualified, professional emergency personnel from the location of an accident, injury, or acute illness to a hospital or other appropriate health care facility.

Face Amount: Face Amount is the amount that an insurer agrees to pay in case of death or at maturity. It does not include additional amounts payable under accidental death or other special provisions.

Fee-for-Service: A payment system for healthcare in which the caregiver is paid for each service provided rather than a pre-negotiated amount for each insured patient.

Foreign Insurer: An insurance company that is incorporated in another state.

Formulary: The list of preferred pharmaceutical products that is to be used by physicians in a managed-care plan when they prescribe medication.

Fraud: Dishonest act or concealment by the policy holders to claim an insurance policy that would otherwise not be paid or misrepresentation by the officials of an insurance company.

Generic Drug: A drug which is the same as a brand name drug and which is allowed to be produced after the brand name drug's patent has expired.
Grace period: It is the Period of time after the premium due date in which premiums may still be paid, with the insurance policy still remains in force.
Group Disability Insurance: A type of insurance policy plan that covers a group of individuals insured against the loss of pay due to accident or sickness.
Group Health Insurance: A type of insurance policy plan which covers health insurance to the members of the insured group.

Gear theft: Gear theft coverage protects your personal equipment, such as cameras, electronics, or sports gear, if it’s lost, stolen, or damaged during your trip. It helps reimburse you for the cost of replacing or repairing the stolen or damaged items, giving you peace of mind while traveling with valuable gear.

Hazardous sports coverage:
Coverage for injuries incurred during amateur athletic activities which are non-contract and engaged in by an insured person solely for leisure, recreation, entertainment or fitness purposes.However, activities not covered include amateur or professional sports or other athletic activity which is organized and/or sanctioned, or which involves regular or scheduled practices, games or competition. Usually, following hazardous activities can be included by optional sports rider at additional premium cost: scuba diving, mountain climbing(up to 4500 meters or where ropes or guides are normally used), jet, snow and water skiing and snowboarding, sky diving, amateur racing, piloting an aircraft, bungee jumping and spelunking.

Health Insurance: Coverage that provides Protection against loss due to sickness or bodily injury.

Health Maintenance Organization (HMO): It is an Organization that provides a wide range of prepaid comprehensive health care services for a specified group for a fixed period of time. The focus of the HMO is preventive medicine.

Hospital Medical Insurance: A type of health care policy plan that provides coverage benefits for the cost of any or all hospital services.

Home Nursing Care: Home healthcare may provide coverage for medically prescribed treatment from a public or private agency which engages in is a wide range of health care services that can be given within in the home for an illness or injury.

Hospital room and board: Home healthcare may provide coverage for medically prescribed treatment from a public or private agency which engages in is a wide range of health care services that can be given within in the home for an illness or injury.

Hospital emergency room: Provide coverage for emergency room treatment due to a medical emergency.

Indemnity Plan: Traditional health insurance that usually covers a percentage of the cost of care after the insured pays an annual deductible.

Individual policy: An insurance policy (life, health, or disability) that provides coverage for an individual person (and, in some cases, his/her immediate family members), as opposed to a group policy that provides coverage for a group of individuals such as coverage through an employer.

Insurance: A contract whereby one party (insurer) agrees to indemnify or gurantee many individuals and business entities against a financial loss in return for payment of a premium.

Insured: Person that purchases the insurance policy or enrolls into the insurance plan.

Intensive care unit: Intensive may provide coverage for medically necessary stays in an intensive care unit.

Interfacility ambulance transfer: Provide coverage for medically necessary transfers from one licensed health care facility to another via air or land ambulance.

Identity theft: Cover costs associated with the crime of obtaining and using the personall and/or financial information of another person for the sole purpose of assuming that person's identity in order to make transactions or purchases. Example re-filing loan or credit applications or amending records.

IFAR: Interruption for Any Reason (IFAR) gives you greater flexibility to modify your travel plans when the unexpected occurs. If you're seeking additional protection for your investment, IFAR might be the ideal choice for you.

Lost luggage: This benefit will be paid in the event that the common carrier permanently looses an insured person's checked luggage.This coverage is secondary to any other available coverage, including the carrier's.

Laboratory: Laboratory may include services for testing specimens from the body that are used to diagnose and treat patients.

Natural disaster: Natural disaster may provide coverage for large scale extreme weather or environmental events that damage property, disrupt transportation, or endanger people. Examples include earthquake, fire, flood, hurricane or volcanic eruption..

Natural disaster evacuation: Natural disaster may provide coverage for large scale extreme weather or environmental events that damage property, disrupt transportation, or endanger people. Examples include earthquake, fire, flood, hurricane or volcanic eruption.

Out of pocket maximum: Maximum amount of money that the insured must pay on his own before the insurance company will pay 100% for insured's healthcare expenses.

Pre-existing conditions: A pre-existing condition is defined as any injury, illness, sickness, disease, or other physical, medical, mental or nervous condition, disorder or ailment that existed at the time of application or during the past duration(specified by each insurance plan) prior to the effective date of the insurance, including any subsequent, chronic or recurring complications or consequences related to thereto or arising thereffrom.

Policy maximum: Maximum amount of money that the insurance company will pay for covered expenses. Policy maximum can be either per policy period, per year, life time or per injury/sickness depending upon the insurance policy you purchase.

Premium: Amount you pay to purchase medical insurance plan. Premium may be paid monthly, quarterly, semi-annually, annually or for entire duration of the coverage depending upon the insurance policy you purchase.

Prescription Drugs and Medications: It may provides coverage for drugs which require a prescription by a physician for treatment of illness.

Physician visits: Physician visits may provide coverage for a meeting between the insured and a physician to get health advice or treatment for a symptom or condition.

Political evacuation and repatriation: Political evacuation may provide coverage if an approved government organization of the insured's country of residence orders evacuation due to political unrest. Necessary evacuations relocate the insured from the unsafe place to safety and when danger is cleared, back to the original destination or to the insured home country.

Personal liability: Provide coverage during the insured's journey, they become legally liable for accidental bodily injury to, or the death of, any person and/or accidental loss of or damage to property, if (and only if) there is no other insurance in force covering the loss, the material damage or their liability.

Pet return: Include reimbursement of the cost of a one-way economy commercial airline or ground transportation ticket to return a pet cat or dog to the airport within the insured person's country of residence.

Primary coverage: Primary coverage in travel insurance means your policy is the first to cover eligible expenses, such as medical costs or trip cancellations. With primary coverage, you don’t have to rely on other insurance, like health insurance or credit cards, making the claims process easier and faster.

Repatriation of remains: If a covered illness/injury results in a death, expenses for repatriation of bodily remains or ashes to the country of residence.

Return of minor children: If an insured person is hospitalized due to a covered illness/injury and is traveling alone with child(ren) of age 19 or under that otherwise would be left unattended, the cost of one way economy fare to their home country, usually up to some reasonable maximum amount.

Radiology: Provide coverage for tests used to help diagnose a disease or condition. Mammograms and colonoscopies are examples of diagnostic procedures.

Remote transportation: Remote transportation may provide coverage expenses incurred by the insured arising out of or in connection with remote tranporatation expenses for travel to the near qualified facility where the insured will receive treatment.

Return travel: Return travel may provide coverage for the cost of a one-way commercial airline ticket in the case of a unexpected death of a relative or the destruction of the insured's insurance.

Rental car damage: Provides reimbursement for the cost of repairs, rental charges and/or actual cash value of the car rented by the insured while on the trip, and the car is damaged due to covered reasons* not within your control while in your possession.

Surgery: Surgery may provide coverage for approved costs accured form the surgical procedures performed by surgeon.

Supplemental Accident: Provide coverage designed to help the out of pocket costs that add up after an accidental injury.

Small Pet Common Air Carrier Accidental Death: It may provide coverage in the event of an unexpected death of pet cat or dog weighing up to thirty pounds and travelling with a covered insured person on a common air carrier. This benefit applies to the only insured person's originating flight from the country of residence, and the pet must be checked with the air carrier, whether travelling in the airplane cabin with the insured person.

Secondary coverage: Secondary plans may require filing the claims with any existing insurance before filing with the travel insurance provider.

Trip interruption: If, during a covered trip, there is a death of an immediate family member(spouse, child, parent or sibling) or the substantial destruction of the insured's principal residence, many plans would pay the insured to the area of principal residence. Many plans usually pay for one way air or ground transporation ticket of the same class as the unused travel ticket, less the value of the unused return ticket.

Traumatic Dental Injury: Coverage for the transportation of the insured individual's bodily remains back to their area of principle residence in the event of a covered illness or injury that results in death.

Terrorism : Provide coverage for injuries and illness incurred as a result of an act of terror, limited in amount and by circumstances.

Travel Delay: Travel Delay may provide coverage for basic expenses, such as a hotel room and meals, if elected trip is delayed for a covered reason. Coverage starts when the delay reaches a specified number of hours(hours vary by plan).

Trip Cancellation Insurance

• Trip cancellation insurance or Trip protection insurance is designed to insure both the health of the traveler and the cost of non-refundable trip expenses should the trip get cancelled or is interrupted.
• Trip interruption insurance coverage is effective after the trip has begun but is interrupted due to an emergency.
• This insurance covers non-refundable trip expenses which can include hotel rooms, airline and cruise tickets...It might also cover unexpected expenses due to lost, damaged, delayed or stolen luggage.

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UC&R (or Usual, Customary & Reasonable): UC&R (or Usual, Customary & Reasonable) Charges represent the average or most common amount charged by providers for a particular service, treatment, or supply in the same geographic area. Typically information on rates for procedures is compiled into a data bank and updated periodically. So when a claim is submitted for a plan with UC&R benefits, the insurance company before making the claim payment reviews the UC&R rate and double checks that hospitals and doctors are not billing excessively for the particular service or procedure. Most well respected plans from Blue Cross, Aetna, Lloyds, Unicare etc. follow the UC&R schedule.

Urgent Care Clinic: Urgent Care is similar to walk in but with additional capabilities. uragent care cenetrs are able to treat more serious illness or injuries.

Unexpected recurrence of pre-existing condition: Unexpected recurrence of a pre-existing condition" refers to a situation where a health condition that a person has had in the past unexpectedly returns or reappears, despite the expectation that it might not come back. This can happen for a variety of reasons, even if the person had been stable for a while.

Walk-In Clinic: Walk-In Clinic is a term typically used for facility that provides a more affordable option for basic medical care than an emergency room.