Travel insurance should be the most important itinerary while planning the budget for your holiday. A travel insurance will cost anywhere bet 4% to 8% of the total vacation trip cost.

Here's an example: if the total cost for a vacation in thailand is rs. 2.5 lakhs, then the cost of travel insurance will be anywhere between rs. 2000 to rs. 5000.

Here are the factors that determine the premium a customer needs to pay:-

Sum insured:

The higher the sum insured, the higher will be the premium

Type of plan:

Customer needs to choose what kind of plan he is looking for - whether it is a single trip, multi-trip, student travel plan or senior citizen plan.

Basic optional coverage:

If the customer would like to add some special coverage to the plan they may have to end paying a little more. For eg: home insurance, separate insurance for important documents / expensive items, sports coverage, etc.

Duration of travel:

The longer the duration, the higher will be the premium.

Travel destination:

There are countries like, united states, united kingdom, canada, australia, etc. Where the medical expenses are costlier due to which the customer will end up paying a higher premium.

Age health:

Customer's current age and health play the most important factor while calculating the premium. Senior citizens and customers who already have pre-existing diseases need to specify on the proposal form. Depending on the underwriting guidelines company terms & conditions the policy will be issued.

While choosing the right product, it is important to make adjustments to the plan as per your comfort, benefits offered and considering the cost.