Is Travel Insurance a Cost or An Investment?

what is travel insurance

Purchasing travel insurance for domestic trips may appear a little alien to you. But if you are planning an international trip and wondering if travel insurance is really worth buying, the answer would be yes. So, should you see it as an added cost to your travel budget or an investment? Let’s try to understand this with the help of an example.

Say, you are going on an exciting vacation to Mexico. You have spent weeks planning your holiday — from applying for a Mexico tourist visa for Indians, booking flights and hotels, to planning an interesting itinerary. But what will you do if you get sick or lose your baggage during your trip? Or what if something unexpected happens and you can not take your vacation? What can be done in such scenarios?

Buying travel health insurance is the best way to deal with these types of unforeseen events. It can help you avoid travel-related risks, such as medical emergencies, loss of personal belongings, unexpected cancellations, third-party liabilities, etc. For these reasons, many people consider travel insurance as an investment rather than an expense.

This blog will discuss other important reasons that make travel insurance in India more of an investment than a cost.

Keep reading!

 Reasons Why Travelling Insurance is an Investment 

The right insurance for travel can save you from potentially spending thousands of rupees you might otherwise spend due to unprecedented events during your trip. The following are the reasons that make a travel insurance policy a great investment:

  • Offer Comprehensive Coverage of Health Risks :

A health insurance plan offers the much-required financial assistance when you need hospitalisation during your trip. With the right travel policy, you can even get cashless treatment at one of the network hospitals of your insurance company. In this way, you can get treatment for various unforeseen health issues without spending a penny from your pocket.

  • Offers Baggage Loss Protection :

Losing your baggage or any personal belongings in a foreign country is no less than a nightmare. However, if you have travel insurance, you will be compensated for the items that are lost or stolen from you. These items include your baggage, electronic gadgets like mobile phones, laptops, documents like passports, jewellery, etc.

  • Mandatory Requirement in Some Countries :

Countries like Dubai, Russia, Turkey, and Schengen Area nations have mandated travel health insurance for their foreign visitors. Note that this regulation has turned out to be very beneficial for the travellers. This is one of the reasons why an increasing number of travellers look at travel insurance as an investment.

  • Offers Liability Coverage :

Travel insurance not only compensates for any injury caused during an accident but also offers coverage for the third-party damage arising because of you. In such situations, the right travel insurance plan saves you from legal trouble as your insurance provider takes care of offering compensation to the other party.

  • Compensates for Cancellations and Delays :

No doubt, pre-booking saves you from the hassle of searching and booking on the site. For this reason, most of us prefer making our flight and hotel reservations in advance. But it’s not a hidden fact that advance bookings are subjected to the risk of delays and sudden cancellations.

In this situation, having a travel health insurance scheme is very effective as it can help you get reimbursed for any abrupt cancellations or delays made by your trip organisers.

 Is it Okay to Buy Travel Insurance That is Affordable?

As you can see, travel insurance has become indispensable for its benefits and coverage against numerous travel-related risks. But sometimes, the higher insurance cost can make your travel expensive, given that you have already spent a lot on flights and accommodations.

Here is the good thing — you don’t always have to purchase a very expensive travel insurance policy.

Many well-known insurance providers offer affordable insurance policies with excellent coverage. All you need to do is, compare different policies for trip insurance online and select the one that fits your budget.

Moreover, to make your insurance plan even more cost-effective, you can avoid having any unnecessary add-ons.


Travelling is fun and it gives us a much-needed break from our hectic daily schedule. But sometimes, it can become an expensive affair due to the many risks that are associated with it. This is the point where investing in good travel insurance becomes very important.

Marcin Aleem

The author Marcin Aleem