Travel insurance terms defined

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Trip Cancellation: A benefit that covers specific unforeseen covered reasons that cause you to cancel your trip. It’s only available prior to departure and is included in most comprehensive travel insurance policies.

CFAR:  Cancel For Any Reason is a specific type of travel insurance coverage which offers travelers the opportunity to cancel a trip for reasons other than those specifically listed in their policy or policies.

Travel Delay: A benefit that offers coverage for incidental expenses resulting from a travel delay of a certain number of hours, like a hotel room if your flight were delayed overnight.

Trip Cost: In travel insurance, this means pre-paid, non-refundable trip expenses only.  

Trip Interruption: A benefit available while traveling that offers coverage for pre-paid, non-refundable expenses should a traveler’s trip be unexpectedly cut short.

24-hour Accidental Death: This is not the same as life insurance. In travel insurance, this coverage is for an accidental death while on a trip (for example, car accident NOT illness). This plan offers continuous coverage for the entire trip.

Emergency Medical Evacuation: In travel insurance, this term generally means being evacuated to-and-from a medical facility. Some policies will also provide evacuation from point of injury.

Common Carrier:  Any land, sea, or air conveyance operating under a valid license for the transportation of passengers for hire. (for example: airline, cruise line)

Date of Deposit: Earliest date a payment was made to your trip, deposit or otherwise.

Financial Default:  This benefit provides trip cancellation coverage (up to the policy limit) if a travel supplier ceases business operations due to financial reasons.

Pre-existing medical condition exclusion: In travel insurance, a pre-existing medical condition means any injury or illness which was contracted or which manifested itself, or for which treatment or medication was prescribed.

Pre-existing medical condition waiver: Most policies will offer a waiver of pre-existing conditions if you meet the following conditions: You purchase the policy within 10 to 21 days of making your first trip payment; insure ALL prepaid non-refundable expenses prior to your departure date; and be medically fit to travel the day you purchase the policy.