PAL Travel Insurance, underwritten by Allied Bankers Insurance Corporation, is specifically tailored for Philippine Airlines passengers. When considering travel insurance, one of the key questions is often about the cost. However, determining the exact amount of PAL Travel Insurance isn’t straightforward as it depends on multiple factors. This article will delve into these factors, the types of coverage available, and how they influence the overall cost.
Factors Affecting the Cost of PAL Travel Insurance
Trip Cost
Influence on Premiums
The cost of your trip plays a significant role in determining the price of PAL Travel Insurance. If the insurance plan includes trip cancellation or interruption benefits, the total trip cost is a major factor in calculating the premium. For example, if you file a claim for a covered trip cancellation, reimbursing you for a $25,000 luxury safari will cost the insurer much more than for a $5,000 beach house rental. So, the more expensive your trip, the higher the insurance premium is likely to be.
Your total trip cost encompasses not just airfare and hotels. It also includes any travel – related expenses incurred before your departure date. This could involve tour costs, event tickets, theme park passes, and cruise ship excursions. When getting a quote for PAL Travel Insurance, it’s crucial to accurately enter these costs.
Calculation Example
Suppose you’re planning a trip to Europe. You’ve booked a flight with Philippine Airlines for $1,000, a hotel for $2,000 for a two – week stay, and you’ve also pre – paid for a guided tour package worth $500. Your total trip cost is $1,000 + $2,000+ $500 = $3,500. Based on this cost, the insurance premium for trip cancellation and interruption coverage will be calculated. If the insurance company typically charges a certain percentage (say 5 – 10%) of the trip cost for this type of coverage, the premium for this aspect of the insurance could range from $175 ($3,500 x 0.05) to $350 ($3,500 x 0.1).
Age of the Traveler
Risk – Based Pricing
Travel insurance costs, including those for PAL Travel Insurance, are based on risk. Older travelers are generally at a higher risk for health problems. As a result, the cost of travel insurance, including medical and emergency evacuation coverage, tends to increase with age. For instance, a 25 – year – old traveler may pay a significantly lower premium for medical coverage compared to a 65 – year – old traveler on the same trip.
Insurance companies often categorize travelers into different age bands. Younger travelers, typically those under 65, are often placed in a lower – risk bracket. After the age of 65, the insurance premium may start to increase substantially. Some insurance policies may also have specific age – related limits or conditions. For example, some may have a maximum age limit for certain types of coverage.
Age – Band Premium Variation
Let’s assume that for a basic PAL Travel Insurance plan that includes medical and trip cancellation coverage, a 30 – year – old traveler might pay $100 for a one – week international trip. However, a 70 – year – old traveler on the same trip could pay $250 or more. This difference is due to the higher perceived risk of health – related issues and potential claims among older travelers.
Destination
Risk and Healthcare Cost Considerations
The destination of your trip can impact the cost of PAL Travel Insurance in several ways. Destinations that are considered high – risk, either due to natural disasters, political instability, or high crime rates, may result in higher insurance premiums. For example, traveling to a region known for frequent earthquakes or civil unrest may prompt the insurer to charge more to cover potential risks such as emergency evacuation.
The cost of local healthcare at the destination also matters. If you’re traveling to a country with high healthcare costs, like the United States, Canada, or some Caribbean countries, the insurance premium will likely be higher. This is because the potential cost of covering medical expenses in case of illness or injury is greater. In contrast, traveling to a European country where travelers can access free or low – cost healthcare with a European Health Insurance Card (EHIC) or Global Health Insurance Card (GHIC) may result in a lower premium.
Destination – Specific Premium Examples
For a trip to a European country like France, where healthcare is relatively accessible and the overall risk is considered moderate, the PAL Travel Insurance premium for a one – month trip might be $150. However, for a trip to the United States, with its high – cost healthcare system, the same insurance plan for the same duration could cost $300 or more.
Duration of the Trip
Increased Risk with Longer Trips
Generally, the longer your trip, the higher the cost of PAL Travel Insurance. The reason is that the longer you’re away from home, the more likely you are to encounter unexpected events such as illness, lost luggage, or trip disruptions. For example, a two – week trip has a higher probability of something going wrong compared to a weekend getaway.
Insurance companies assess the risk associated with the length of the trip. A longer – term trip exposes you to a greater number of potential risks over an extended period. This increased risk is reflected in the premium calculation.
Duration – Based Premium Comparison
Consider a traveler taking out PAL Travel Insurance for a three – day domestic trip within the Philippines. The premium for basic coverage (including medical and baggage protection) might be $20. However, if the same traveler is going on a three – month international trip, the premium could be $300 or more, depending on other factors like age and destination.
Type and Level of Coverage
Comprehensive vs. Basic Coverage
PAL Travel Insurance offers different levels of coverage. A basic plan may only cover essential aspects such as medical expenses up to a certain limit and lost baggage. A comprehensive plan, on the other hand, will include additional benefits like trip cancellation, interruption, flight delay, emergency evacuation, and personal liability. Naturally, a comprehensive plan will cost more than a basic one.
For example, a basic PAL Travel Insurance plan might cover medical expenses up to $50,000 and lost baggage up to $1,000. The premium for this plan for a one – week international trip could be $80. A comprehensive plan that includes trip cancellation coverage for the full cost of the trip, emergency evacuation coverage up to $100,000, and personal liability coverage up to $50,000 might cost $200 or more for the same trip.
Optional Add – ons
There are also optional add – ons available with PAL Travel Insurance. These could include “cancel for any reason” coverage, which allows you to cancel your trip for any reason and receive a partial refund of your prepaid, non – refundable expenses. Another add – on could be coverage for adventure sports. If you plan to engage in activities like skiing, diving, or bungee jumping, which are often excluded from standard policies, adding this coverage will increase the cost.
Suppose the base cost of a PAL Travel Insurance plan is $100. Adding “cancel for any reason” coverage, which may typically cost an additional 40 – 50% of the trip cost, could significantly increase the premium. If your trip cost is $2,000, this add – on alone could cost $800 – $1,000, bringing the total insurance cost to $900 – $1,100.
Pre – Existing Medical Conditions
Coverage and Cost Implications
If you have pre – existing medical conditions, it can affect the cost of PAL Travel Insurance. Insurance companies need to assess the risk associated with these conditions. If you have a condition that could potentially require medical treatment during the trip, the premium will likely be higher. For example, if you have a chronic heart condition or diabetes, the insurer may charge more to cover the potential medical expenses related to these conditions.
However, some insurance policies, including certain PAL Travel Insurance plans, may offer pre – existing condition benefits. To be eligible for these benefits, you usually need to meet specific criteria. For instance, you may need to purchase the policy within 14 days of making your trip deposit or first payment, purchase trip cancellation benefits that cover the full trip cost, and be a U.S. resident (if applicable) and medically able to travel on the day you bought the plan.
Premium Adjustment for Pre – Existing Conditions
Let’s say a traveler without pre – existing conditions pays $150 for a PAL Travel Insurance plan for a two – week international trip. If the same traveler has a pre – existing condition like asthma, the premium could increase by 50 – 100%, depending on the severity of the condition and the insurer’s assessment. So, the new premium could range from $225 to $300.
Types of Coverage in PAL Travel Insurance and Their Costs
Personal Accident Coverage
Coverage Details
PAL Travel Insurance provides personal accident coverage. For domestic travel within the Philippines, the policy offers PHP 1,200,000 in coverage. For travel to Asia (except Japan, Korea, and the Middle East), the coverage amount is USD 55,000, and for travel to the rest of the world, it is USD 80,000.
This coverage pays a lump – sum cash benefit in case of loss of life or permanent total disability due to an accident while traveling and during the period of insurance.
Cost Association
The cost of this coverage is factored into the overall insurance premium. Since it involves potentially large payout amounts, it contributes significantly to the premium calculation. For example, for a traveler going on an international trip, the personal accident coverage, along with other benefits, will determine the final premium. If a traveler is in a higher – risk age group or traveling to a destination with a higher perceived risk of accidents, the cost of this coverage within the overall premium will be adjusted accordingly.
Medical Expenses and 24 – Hour Travel Assistance Coverage
Coverage Scope
This coverage includes medical expenses due to accident or illness, including admission, dental, and follow – up care. The limits vary depending on the type of trip. For domestic travel in the Philippines, the coverage is up to PHP 1,200,000 (with a deductible of PHP 500). For travel to Asia (excluding certain regions) and the rest of the world, the limits are USD 65,000 and USD 125,000 respectively.
It also includes emergency assistance/evacuation, which arranges for transport to move the insured passenger to a more convenient location if they become injured or sick while traveling, as approved and coordinated with PAL Travel Assistance. Additionally, there is a hospital confinement income benefit (up to 10 days), emergency communication expense coverage, and provisions for compassionate visit and child guard services.
Cost Determination
The cost of this coverage is influenced by factors such as the traveler’s age, the destination (due to varying healthcare costs), and the trip duration. As mentioned earlier, traveling to a destination with high healthcare costs like the United States will result in a higher premium for this coverage. Older travelers are also likely to pay more due to the increased risk of health issues. For a one – month trip to the United States, a 50 – year – old traveler might pay $200 – $300 for this medical and assistance coverage as part of the overall PAL Travel Insurance premium.
Travel Inconvenience Coverage
Components of Coverage
Travel inconvenience coverage in PAL Travel Insurance includes several aspects. Trip cancellation coverage reimburses you for non – refundable reservations if you need to cancel your trip due to covered reasons. The limits are up to PHP 50,000 (with a deductible of PHP 500) for domestic travel, up to USD 2,000 (with a deductible of USD 10) for travel to Asia (excluding certain regions), and up to USD 4,000 (with a deductible of USD 10) for travel to the rest of the world.
Trip curtailment coverage works similarly in case you need to end your trip early. Baggage delay coverage provides compensation for each 12 – hour delay, with limits such as up to PHP 5,000 (maximum of PHP 50,000), up to USD 200 (maximum of USD 2,000), and up to USD 250 (maximum of USD 2,500) depending on the destination. Flight delay, missed connection, and flight diversion benefits also offer compensation for relevant delays. Loss/damage of baggage and personal effects, loss of travel documents, emergency cash due to loss of travel documents, loss of personal money, and hijack inconvenience benefits are also part of this coverage.
Cost Considerations
The cost of this coverage depends on the trip cost, as it is related to reimbursing pre – paid expenses. If you have a more expensive trip with a higher value of non – refundable reservations, the premium for trip cancellation and curtailment coverage will be higher. The likelihood of experiencing travel inconveniences, which can be influenced by factors like the time of year (e.g., more flight disruptions during peak travel seasons) and the reliability of the airlines and transportation systems at the destination, also affects the cost. For a high – value international trip during a busy holiday season, the premium for travel inconvenience coverage could be $150 – $250 as part of the overall insurance cost.
Other Travel Benefits Coverage
Coverage Explanation
This category includes personal liability including legal expenses, with coverage limits such as up to PHP 500,000 for domestic travel, up to USD 50,000 for travel to Asia (excluding certain regions), and up to USD 100,000 for travel to the rest of the world. It also includes car rental protection, which provides coverage for damage to rental cars. Additionally, 24 – hour worldwide travel assistance service is included, which can help with various issues during the trip, such as finding medical facilities, legal advice, and emergency translation services.
Cost Factors
The cost of personal liability and car rental protection coverage is related to the potential financial exposure of the insurer. The more expensive the potential liability or the higher the value of the rental car (in case of car rental protection), the higher the premium. The inclusion of the 24 – hour worldwide travel assistance service also adds to the cost, as it requires the insurer to maintain a network of service providers globally. For a traveler planning to rent a luxury car during an international trip and wanting comprehensive personal liability coverage, the premium for these additional benefits within the PAL Travel Insurance could be $100 – $200.
COVID – 19 – Related Benefits Coverage
Coverage Provisions
PAL Travel Insurance offers COVID – 19 – related benefits. This includes medical expenses related to COVID – 19, with coverage limits similar to regular medical expense coverage (up to PHP 1,200,000 for domestic, USD 65,000 for Asia – excluding certain regions, and USD 125,000 for the rest of the world). Emergency medical evacuation/repatriation of mortal remains due to COVID – 19 is also covered. There is a hospital confinement daily cash benefit (up to 10 days), and trip cancellation and curtailment benefits in case of COVID – 19 – related disruptions.
Cost Impact
The cost of this coverage has been influenced by the ongoing pandemic. Since the start of the COVID – 19 pandemic, the number of claims related to trip cancellations, medical expenses, and emergency evacuations has increased. Insurance companies have adjusted their premiums accordingly. Travelers are now more likely to need this coverage, and the potential cost of claims is high. As a result, the premium for COVID – 19 – related benefits within PAL Travel Insurance has become a significant part of the overall premium. For a traveler going on an international trip during a period of high COVID – 19 prevalence, the premium for these COVID – 19 – related benefits could be $100 – $150 as part of the total insurance cost.
How to Get a Quote for PAL Travel Insurance
Contacting PAL Travel Insurance
You can get in touch with PAL Travel Insurance customer service. The contact number is +632 8859 – 2655. By calling this number, you can speak to a representative who will guide you through the process of getting a quote. They will ask you questions about your trip, such as the destination, duration, age of travelers, and the type of coverage you’re interested in.
Online Quoting Process
PAL Travel Insurance also offers an online quoting option. You can visit their official website . On the website, you will be prompted to enter details about your trip, including the trip cost, departure and return dates, destination, and the number of travelers. You may also need to provide information about any pre – existing medical conditions if applicable. Once you submit these details, the website will generate a quote for you based on the factors discussed earlier.
Conclusion
Determining the cost of PAL Travel Insurance is a complex process that depends on multiple factors such as trip cost, age, destination, trip duration, type and level of coverage, and pre – existing medical conditions. By understanding these factors and how they interact, travelers can make more informed decisions when purchasing PAL Travel Insurance. Whether you’re planning a short domestic trip or a long – haul international adventure, taking the time to assess your needs and shop around for the right insurance coverage at a reasonable price can provide peace of mind during your travels. Remember to accurately provide all relevant information when getting a quote to ensure that you get an appropriate and fair premium for the coverage you require.
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