Understanding Travel Insurance Terminology

When you’re ready to travel, you should always consider getting emergency medical travel insurance before you travel. Doing so could help protect you and your loved ones from eligible emergency medical expenses while travelling.

While buying travel insurance can feel complicated, it doesn’t have to be. Understanding a few basic terms could make buying emergency medical travel insurance easier.

Here is an explanation of some key terms to understand that can help you decide which type of coverage is right for you.

Choosing between Single Trip Plan vs. Annual Plan

Single Trip travel insurance plans provide travel insurance coverage for one single trip taken for a specific number of days. Annual plans, or sometimes referred to as multi-trip plans, on the other hand, provide travel insurance coverage for multiple trips taken over the course of one year up to the maximum trip length you selected when you purchased your annual plan.
If you are planning to take multiple trips in a year, the annual plan may be the better option as it may work out to a lower cost on a per-trip basis and will save you the hassle of purchasing travel insurance every time you travel.

You may come across these terms when considering travel insurance:

Medical Emergency Benefits

Medical Emergency Benefits are what are paid to insured travellers to cover the costs of eligible expenses incurred as a result of a medical emergency. Different plans may offer different kinds of emergency benefits. Please check your plan to understand your emergency benefit amount, what's covered and what's not covered.


An exclusion is anything that is not covered under your policy based on the terms and conditions. Be sure to understand any exclusions that apply to the plan you are considering before you make your purchase.

Pre-Existing Conditions

Pre-existing conditions refer to any disease, illness, or injury that exists prior to the application date or the date your insurance coverage takes effect. Having a pre-existing condition doesn’t necessarily disqualify you from getting travel insurance but may limit or be considered an exclusion if you make a claim related to that condition. Your pre-existing condition may have to be considered “stable” for a specified period of time before your effective coverage date in order to be eligible for coverage.

Hazardous Sports and High-Risk Activities

Hazardous Sports/Activities refer to the potentially high-risk activities that may not be covered by your insurance plan. If you plan to engage in any such activity during your trip, it's a good idea to check with the insurance provider beforehand and understand the list of activities that will be considered hazardous as per the plan coverage.


A deductible is the dollar amount you'll be required to pay if you end up making a claim. Think of it as the portion of the eligible costs that you’re responsible for paying, with the insurance company covering the rest, subject to certain maximums, limitations and exclusions. For example, if you were to make a claim for an eligible emergency medical expense amounting to $1,000 with your deductible being $100, you will be required to pay $100 while the insurance company will pay $900 once your claim is approved. It's always a good idea to carefully go through your policy document or check with your insurance provider to understand the details of your coverage, eligibility, and limitations.

Trip Cancellation and Trip Interruption Insurance

Trip cancellation and trip interruption insurance provides a separate kind of coverage from travel medical insurance. Trip cancellation and trip interruption insurance covers non-medical costs incurred if you have to cancel your trip or if your trip is interrupted due to a cause covered under your insurance plan.

The benefits provided by trip cancellation and trip interruption can vary from insurer to insurer. It is important to review your plan to understand what is covered. Some examples of benefits this insurance coverage could include are:

  • Coverage for eligible non-refundable travel expenses like trip deposits and flight change fees; and
  • Reimbursement for meals, accommodations, transportation, and other expenses

Baggage and Personal Effects Insurance

Baggage and personal effects insurance could repair or replace lost, damaged, or stolen baggage and personal items up to a pre-defined maximum dollar limit.

Accidental Death and Dismemberment Insurance

In the context of travel insurance, accidental death and dismemberment insurance provides coverage in the unfortunate scenario of an insured person losing their life or limbs up to a maximum amount as described in your policy.

Ready to learn more?

Purchasing travel insurance before your trip is a smart way to help yourself and your family against unexpected eligible expenses.

Learn about the travel insurance plans offered by TD Insurance.
Disclaimer - The content on this page is for general information purposes only and does not constitute legal, financial or insurance advice. Speak to an insurance professional advisor regarding your specific situation. The information contained herein, is subject to change without notice.