Annual Multi-Trip Plan

Provides coverage for all trips made within a year.

Baggage and Personal Effects Coverage

Covers a policy holder’s baggage, passport, credit cards, and personal effects.

Benefits

The amount a beneficiary receives from the insurance provider after a claim has been filed.

Benefit Period

The period of time during which the insured receives compensation from their insurance company for medical purposes, and can vary from policy to policy. For example, one policy may state that your benefit period begins the day you are hospitalized for a serious illness and ends 30 days after you stop receiving treatment.

Co-Insurance or Co-Pay

Refers to the amount paid by the policy holder after payment of the deductible is completed.

Common Carrier

Any land, sea, or air conveyance operating under a valid license for the transportation of passengers for hire.

Continuous Coverage

Health insurance coverage that is not interrupted by a lapse of a predetermined number of days.

Coverage Area

The geographical region where an insurance policy is in effect.

Covered Expenses

Expenses that the insurance company agrees to cover based on the insurance policy purchased. A summary of “covered expenses” will be listed in the Schedule of Benefits.

Covered Reasons

The specific situations and events that are covered by a specific coverage or policy.

Deductible

The amount a policy holder is required to pay before the insurance provider starts making payment. It can be a yearly amount, an amount based on the duration of the policy, or amount based on incident.

Death Benefit (Survivor Benefit)

The total compensation that is paid to the beneficiary of the life insurance plan when the insured passes away.

Dependent

Usually a spouse and/or children who are legally dependent on the insured. Depending on the insurance plan, dependents may qualify for insurance coverage on the insured’s policy.

Emergency Benefits

Provides coverage for expenses incurred when a person is transported to a place where they receive immediate medical attention.

Evacuation: Emergency Evacuation Categories

Emergency medical evacuation (to the nearest qualified medical facility that can handle the medical condition)

Medical due to outbreaks, epidemics

The threat of natural disaster

Political evacuation due to civil unrest (treated separately)

Includes expenses for reasonable transportation (either public transport or private as reasonable based on the condition) resulting from the evacuation; and the cost of returning to either the home country or the country where the evacuation occurred. Sometimes includes remote transportation in the event of a diagnosis of a critical medical condition that is not necessarily immediately life-threatening, but severe enough that it could result in death or a permanent disability if not treated right away. Any medical treatment (after any deductibles) is usually paid from your medical insurance benefit. May also include an Emergency Reunion Benefit, or Return of Minor Children.

Emergency Reunion Coverage

Covers the traveling and accommodation expenses incurred when a friend or family member of an ill or injured policy holder travels to visit them.

Exclusions

Expenses the insurance provider will not cover, and they usually include expenses that result from participation in high-risk sports or recreational activities.

Effective Date

The date when the insurance coverage becomes effective.

Elimination Period (Waiting Period)

the period of time between the insured’s accident and the arrival of benefit payments. For example, if you broke your leg in January and received your first benefit payment in February, the elimination period would be one month.

Epidemic

An outbreak of a contagious disease that spreads rapidly and widely and that is identified as an epidemic by The Centers for Disease Control and Prevention (CDC).

Exclusions

Cases under which an insurance provider does not provide coverage to the insured. For example, an insurance company may include an exclusion for car accidents if the insured is driving under the influence.

Expatriate Insurance

Expat insurance policies designed to cover financial losses that expatriates face while living and working in a country other than their own.

Family Plans

Plans that cover every member of a family who is traveling, and they usually come with discounted rates.

Grace Period

A period of time after an insurance premium payment is due during which the insured can fully enjoy the insurance coverage without incurring an additional fee. Grace periods can range from 24 hours to 30 days, and after their expiration, the insured will be required to pay an additional fee.

Hazardous Sports and Activities Coverage

Refers to coverage of medical expenses incurred to treat a policy holder who becomes injured because of participation in hazardous sports and activities, such as: sky diving, scuba diving, or rock climbing

HIPAA

The Health Insurance Portability and Accountability Act. This is also known as the Kassebaum-Kennedy Act enacted by the US Congress in 1996. It includes basic requirements for health insurance privacy and portability of health insurance, thus avoiding the exclusion of coverage for pre-existing medical conditions.

Hospital Indemnity

Hospital indemnity will provide $$ for each night you spend in the hospital as an inpatient when receiving treatment for a covered illness or injury. Hospital indemnity benefits are typically not subject to a deductible or coinsurance and are in addition to the payments for other covered expenses.

Insured

The individual who is covered by the travel insurance policy.

Individual Plans

Plans that provide coverage for only one person.

Inflation Protection

A feature of certain insurance policies whereby the value of benefits increases by a certain, pre-defined percentage during specific time periods to assure that insurance coverage grows at the same pace as inflation.

Insurance Provider Network

The grouping of hospitals, doctors, and other health care providers that the insured will receive the maximum insurance coverage from working with.

Health Maintenance Organization (HMO)

– an insurance provider plan that typically limits customers to receiving insurance coverage only when working with one specific network provider.

Preferred Provider Organization (PPO, or Participating Provider Organization)

– an organization of hospitals, doctors, and other health care providers who have agreed to provide health care at reduced rates to clients of a particular insurance provider. Healthcare providers who fall into your provider’s PPO are often referred to as “In-Network” providers, while healthcare providers outside of your insurance provider’s PPO are referred to as “Out of Network” providers, and will typically cost you much more than in-network providers.

In-Network, Out-of-Network

Medical facilities and practitioners that have contracted with the insurance companies to provide discounted rates, direct billing, and other services are considered In-Network (See more about Doctor Networks). Those facilities that have not contracted are considered “Out-of-Network.” The insured will typically save money by using “In-Network” providers and facilities.

In-patient

A patient admitted for at least a 24-hour residence (or at least overnight) in a medical facility where he is being treated.

Insurance Broker

An agency or individual who works as an intermediary between a person wanting insurance and one or more insurance companies to guide them in the purchase of insurance. (See Why Work with an International InsuranceBroker)

IPMI

International Private Medical Insurance or Global Health insurance.

Lost Luggage

Secondary coverage that is paid when a policy holder’s checked luggage is permanently lost. Aka Loss/Theft, if there is damage to, or loss of, or theft of your checked or stored baggage or personal items (Defined as suitcases, clothing, toiletries, books, photo equipment, mobile phones, and laptops) by a common carrier, or while stored with your hotel. It will also usually include coverage for the replacement costs of travel documents, and sometimes bag tracking. May, or may not, include delayed baggage.

Lifetime Maximum

The maximum amount an insurance company will pay for all benefits received. The usual limits are $1,000,000; $3,000,000 or $5,000,000 but may be greater or, in some cases, unlimited.

Loss

Injury or damage sustained by you in consequence of the happening of one or more of the occurrences against which the company has undertaken to indemnify you.

Maximum Policy Coverage

Refers to the maximum compensation that will be paid for expenses covered by a policy.

Medical Evacuation (MedEvac, medivac)

Timely and efficient evacuation and in-route care of ill or injured persons, usually by air transportation, to a place where they can receive adequate medical care.

Medically Necessary

Treatment that’s appropriate for your illness or injury, consistent with your symptoms, and that can safely be provided to you. It meets the standards of good medical practice and isn’t for your convenience or the provider’s convenience.

Non-Refundable Travel Expenses

These are expenses paid for a trip that cannot be reimbursed, and they include accommodation deposits and airline tickets.

Natural disaster

A large-scale extreme weather or environmental event that damages property, disrupts transportation, or endangers people. Examples include earthquakes, fires, floods, hurricanes, or volcanic eruptions.

Online Fulfillment

Electronic communication of Medical ID card, certificate or indication of coverage, information on the policy purchased, how to file a claim, and the insurance company’s contact information.

Outpatient

A patient who receives medical treatment at a clinic or hospital, but is not admitted for an overnight stay.

Out-of-Pocket Expense

The total amount that you will pay towards your medical expenses.

Pre-Existing Conditions

Refers to medical conditions of policy holders that existed before the insurance policies were purchased: Usually, insurance providers will only provide minimal or no coverage for expenses related to such conditions.

Premium

The amount paid to purchase a travel insurance plan. The payment can be made in advance, once every month or year, or before every trip.

Primary Coverage

Form of coverage provides insurance for the policy holder even though you have other coverage.

Policy Year

The amount of time from the effective date of the policy that comprises one full year. For example, if the effective date begins April 14, 2009, the policy year will end at midnight, April 13, 2010.

Political Evacuation

Often lumped together with non-medical or security evacuation, political evacuation is for situations where one is either trapped, or expelled, or at risk due to civil uprisings, riots, military coups, political unrest, or being identified as a “persona non grata” in the country you are visiting. Security evacuations (necessary for impending natural disasters, etc.) are different from political evacuations. Political evacuations are for situations of political instability, civil unrest, or military action. Coverage is sometimes dependent on the United States Department of State, Bureau of Consular Affairs, or similar government organization of the insured person’s home country, ordering the evacuation of all non-emergency government personnel from the host country.

Pre-certification

The need to check with the insurance company before receiving medical care, generally for major medical procedures, to confirm if the medical care received will be covered by the insurance company.

Premium

Payment for insurance, the amount paid by the insured to the insurance company for health insurance coverage.

Preventive Care

Medical care given in advance of symptoms to prevent illness or injury. Generally includes emphasis on healthy behavior, regular testing, screening for diseases, routine physical examinations, and immunizations.

Quarantine

Mandatory isolation or restrictions on where you can go, intended to stop a contagious disease from spreading.

Rental Car Insurance

Covers theft or damage of a car rented by a policy holder during their trip. It also covers the damage and injury sustained by other people if the policy holder causes an accident.

Repatriation Benefit

Refers to the coverage of expenses for preparing and sending the deceased person’s body to their own country

Rider (Waiver)

A formal written statement by the insurance company to the insured amending and modifying coverage, e.g., adding or excluding coverage. It could involve waiving coverage for a certain medical condition like cancer, hepatitis or adding coverage for such conditions.

Secondary Coverage

Only offers insurance for expenses not included in the primary coverage.

Single Trip Plan

A policy that provides coverage for only one trip

Schedule of Benefits (SOB)

A list of the benefits, amount of coverage provided in an insurance policy, usually one or two pages in length.

Scheduled Departure Date

The date on which you are originally scheduled to leave on the trip.

Scheduled Return Date

The date on which you are originally scheduled to return to the point of origin or to a different final destination.

Sickness

An illness or disease which is diagnosed or treated by a physician after the effective date of insurance and while you are covered under the policy.

Subrogation

Steps the travel insurance company takes, after paying a claim, to collect from other available sources such as other insurance plans or travel suppliers.

​​​​​Travel Assistance Services

Refers to assistance available to a policy holder when they experiences difficulty in a foreign location. It includes: 24-hour emergency phone services, legal assistance, visa and passport assistance, and others.

Travel Supplier Bankruptcy or Default

Refers to coverage of expenses incurred when a travel supplier goes bankrupt or defaults from providing travel services.

Trip Interruption Insurance

Provides coverage for policy holders who interrupt or cancel their trips because of acceptable reasons such as injury, illness, death of a relative, flight problem, and others.

Terrorism

Terrorismis an act or threat of action by a person or group of people, whether acting alone or in connection with an organisation or government, committed for political, religious, ideological or similar purposes intended to influence any government or to frighten the public or any section of it. An 'action' means: violence, damage to property, putting life in danger, creating a public health risk, or disrupting electronic systems or transport services.

Trip Cancellation

Provides reimbursement for non-refundable trip payments and deposits if a trip is canceled for illness, death, or other specific unforeseen circumstances. The “trip cancellation” benefit covers you in the event you have to cancel prior to your trip due to a covered reason listed in your travel insurance policy prior to your departure date.

Trip Interruption

Trip interruption plans typically reimburse you for pre-paid non-refundable travel expenses if an unexpected crisis (e.g., death of a family member, sickness, airline strike, travel supplier bankruptcy, among other crises) occurs during your trip causing it to be canceled, interrupted or delayed.

Usual, Customary, and Reasonable Charges

Average amounts charged by travel insurance providers for certain services, treatments, or procedures in the same locality.

Underwriter

(1) The company that receives the insurance premium and accepts the responsibility to cover medical costs;

(2) The employee in an insurance company who decides whether or not the insurance company should assume the risk of offering the insurance to an individual or group;

(3) An insurance agent.

Usual, Reasonable & Customary (UCR)

The amount an insurance company will pay for a covered medical expense based on the customary charges of all medical providers in a given geographic area for a similar service.

Valuables

Jewellery, watches, glasses (including sun glasses), contact lenses, keys, hearing aids, any electric, electrical or electronic items or equipment including their accessories (e.g. mobile phones, laptops, games consoles, portable audio equipment, portable visual equipment, memory sticks, chargers, dongles), any kind of photographic or recording equipment and their accessories (including CDs, DVDs, tapes etc), items made of or containing precious metals or (semi) precious stones, furs, animal skins, antiques, binoculars, telescopes, musical instruments.

Waiting Period

A period of time the insured must wait before some or all of the coverages offered in an insurance plan begin and the insured can receive benefits.

Waiver (Rider)

A formal written statement by the insurance company to the insured amending and modifying coverage, e.g., adding or excluding coverage. It could involve waiving coverage for a certain medical condition like cancer, hepatitis or adding coverage for such conditions.

Wellness Benefit (Preventive Care, Well-care)

Medical care given in advance of symptoms to prevent illness or injury. Generally includes emphasis on healthy behavior, regular testing, screening for diseases, routine physical examinations and immunizations.