Factors Affecting Premium for Visitor Insurance Policy
Factors Affecting Premium for Visitor Insurance Policy
Factors Affecting Premium for Visitor Insurance Policy-image

Visitors before buying visitor insurance often wonder if it is expensive. The cost of Visitor Insurance Policy may differ plan to plan. Insurance agents before selling visitor insurance often ask the prospective visitors about their age, start and end dates of their trip, pre-existing medical conditions if any and type of their trip.

Examples- How is Premium Calculated

Let’s take a few examples to understand how certain factors affect the cost of visitor insurance i.e. the amount of premium visitors are supposed to pay:

1. A person who is 30 years of age usually would pay less premium than a 65 years old person. This is because with age health conditions may deteriorate, thereby increasing the need for medical attention.

2. A person who will be participating in extreme sports such as scuba diving or bungee jumping or cross country skiing is likely to purchase coverage for unforeseen medical conditions that may arise while performing these sports. Definitely his need for coverage is different from the person who is mostly indoors and spending quiet time with family.

3. Insurance company charges premium on per day basis. The cost of visitor insurance is naturally influenced by the duration of the trip because premium calculation is based on the number of days of the trip. Therefore, premium for 6 month trip will be higher than premium for a 15-days trip.

4. Visitors who have previously suffered with conditions like diabetes, blood pressure, asthma, heart-ailments etc. would need coverage to cover the acute onset of such pre-existing conditions too. Usually visitor insurance is meant to cover any new sickness or injury or accident, therefore there are few plans that cover acute onset of pre-existing conditions but some plans may charge it separately as an add-on. For complete details, please check insurance policy.

Factors Affecting Premium

These examples clearly show the premium for visitor insurance is different for visitors based on the following factors-

  • Age of traveler: Older the traveler, he or she is more vulnerable to illness or injury. Hence premium will be higher.
  • Extreme sports during trip: Extreme activities would require extensive coverage and hence the add-on of extra coverage would result in higher premium.
  • Duration of the trip: Longer the trip, higher the premium.
  • Coverage for acute onset of pre-existing conditions: The visitors with pre-existing conditions may suffer the acute onset of these medical conditions anytime, and later will have to file a claim for treatment. Some plans include this coverage whereas some offer them as an add-on.
  • Type of Coverage: Comprehensive plans are more expensive than fixed coverage plans because they offer higher benefits and diverse coverage.
  • Deductible: Deductible is the amount of money a visitor is supposed to pay for any medical service or medications before his insurance comes into effect. Therefore, higher the deductible, lower would be the premium. Lower the deductible, higher the premium.
  • Policy Maximum: Policy Maximum is the maximum amount of coverage provided in a visitor insurance policy. Higher the coverage needed i.e. higher the policy maximum amount, higher would be the premium.
  • Amount of Coverage: Besides medical benefits, premium goes higher for benefits like trip cancellation, trip interruption, baggage loss, repatriation of mortal remains and emergency medical evacuation.

Premium must always be based on your individual need as a visitor. Start with comparing plans that offer similar coverage well suited to your requirements. In case of questions about deductibles, the right policy maximum for you and premiums, call MCIS today. Our friendly and expert agents would answer all your questions and help you select the right insurance plan.

Category: Visitor Insurance

November 04, 2015 at 08:59 PM

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