Many travelers find it difficult to understand certain travel insurance terms found in their travel insurance policies. Insurance holders need to have a complete understanding of their policies, so they will know what the policies cover and how they will be compensated when emergencies happen. Here is a list of common travel insurance terms that are usually seen in policies: 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. 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. Co-Insurance or Co-Pay: Refers to the amount paid by the policy holder after payment of the deductible is completed. Emergency Benefits: Provides coverage for expenses incurred when a person is transported to a place where they receive immediate medical attention. Emergency Evacuation: Coverage that provides medical evacuation of a policy holder to a medical facility or their own country 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. Family Plans: Plans that cover every member of a family who is traveling, and they usually come with discounted rates. 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 Insured: The individual who is covered by the travel insurance policy. Individual Plans: Plans that provide coverage for only one person. Lost Luggage: Secondary coverage that is paid when a policy holder’s checked luggage is permanently lost. Maximum Policy Coverage: Refers to the maximum compensation that will be paid for expenses covered by a policy. Non-Refundable Travel Expenses: These are expenses paid for a trip that cannot be reimbursed, and they include accommodation deposits and airline tickets. 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. 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 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 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. Usual, Customary, and Reasonable Charges: Average amounts charged by travel insurance providers for certain services, treatments, or procedures in the same locality.