A question we often ask ourselves is “why should I buy travel cancellation insurance?” Insurance or protection plans are essential if we wish to properly manage personal and business finances. But why are they so important?

The importance of Insurance

Insurance, including travel insurance, is essential because it is a means of protection against unforeseen events that could later translate into loss of assets or income. The value paid for insurance, known as the insurance premium, provides peace of mind that you have financial support, and in this sense, insurance is not considered an expense, but an investment.

Some events, such as accidents, job loss, natural disasters, accidents, theft, and many others, can be insured so that businesses, individuals, and their families are protected from economic consequences.

How to purchase Insurance?

Insurance can be purchased through a contract with the insurance company, in which individuals or companies agree to pay a premium in exchange for protection in specific situations in order to reduce or eliminate unwanted financial impact. This is also equivalent for travel insurance.

How Does an Insurance Policy Work?

An insurance policy is a contract between the insured and the insurance company. Through the payment of a premium, as mentioned in the previous paragraph, financial protection is obtained in specific situations.

The policy establishes the rights and responsibilities of both parties, providing security and peace of mind in covering possible risks. In case of an insured and explicit event, the insured person or company can file a claim to receive the compensation agreed upon in the policy.

This is a reliable way to reduce the unwanted financial impact, which is ultimately the main reason for buying insurance.

What is important to consider when purchasing Insurance?

Coverage: The amount insured and the events in which you are eligible. It is also important to consider the dates when the risk is covered.

Price: The ratio of the premium to the amount paid at the time of the insured event. It is necessary to assess the ability to pay and adjust the value of the periodic or single premium to the cash flow of the person or company.

Insurance Company: The insurance company is the issuer of the policy and is the one that must respond when the event occurs. Therefore, it is important to evaluate the entity and its support, as well as to consider its infrastructure, service, and timeliness of response. The experience and reputation of the insurance company are also factors to consider.

Intermediary: Insurance intermediaries are responsible for product distribution and service. There are several types of intermediaries, including Family Compensation Funds.

Exclusions: Events in which, although the insured situation occurs, the company is not obligated to pay. It is important to clarify this point to have clarity about what you are purchasing.

What are the benefits of buying Insurance?

The benefits focus not only on the economic aspect, receiving a sum of money for the unforeseen event, but also generate peace of mind in the family unit, an aspect that is difficult to evaluate.

We live the day-to-day with greater peace of mind: Having insurance gives us peace of mind and security in our daily lives. It allows us to face daily challenges with confidence, knowing that we have support and are not alone or helpless in difficult times.

Quick and efficient response in the event of an event: In the event of an insured event, insurance companies are prepared to provide a quick and efficient response. They will help us manage and resolve adverse situations, offering channels and guidelines to notify us of the eventuality and reduce inconvenience and associated costs.

Access to customized coverages: Insurance offers coverages that are customized or tailored to our individual needs and circumstances. We can choose the policies that best suit our situations or contexts, whether protecting our home, our vehicle, our health or business, or even our pets, among other important aspects of our lives.

Fulfilling legal obligations: In many cases, having insurance is a legal requirement. A simple example occurs when buying a car. In this case, it is mandatory to have liability insurance coverage, known in Italy as RCA. Meeting these obligations protects us legally and avoids possible penalties.

In addition, many insurance companies also offer assistance and other added benefits that can be valuable; the important thing is to know about them and take advantage of them.