Travel Insurance Basics: 16 Questions

The questions below are the most searched about travel insurance globally. The answers are direct, specific, and without the euphemisms that insurers use to hide what's not covered.

What is travel insurance?

Travel insurance is a financial product that covers expenses and provides assistance in unexpected events during a trip—mainly medical emergencies, cancellation/interruption, lost luggage, and transport problems. Its main function is to ensure that an unforeseen event abroad doesn't result in decades of debt. The central point that differentiates products: who pays the hospital—you (reimbursement) or the insurance (direct payment)?

How much does travel insurance cost?

Depends on destination, duration, coverage, and traveler age. General references:

• South America: USD 1-2/day
• Europe (Schengen): USD 2-4/day
• USA/Canada: USD 3-6/day
• Adventure/remote destinations: USD 5-8/day

For a family of 4 on a 15-day USA trip with adequate coverage (USD 250,000/person): expect USD 300-700 total.

When should I buy travel insurance?

Before boarding—ideally before any non-refundable payment (flight, hotel, ticket). Trip cancellation coverage only applies to events occurring after insurance purchase. A heart attack the day before the trip isn't covered if you bought insurance after the heart attack.

Does travel insurance have a waiting period?

Not for medical emergencies—coverage starts at the moment of boarding. For some specific coverages (cancellation for pre-existing disease, pregnancy), there may be advance declaration requirements. Check your policy for non-emergency coverages.

Do babies and children need travel insurance?

Yes. Babies and children are insurable and should have their own coverage. Pediatric emergencies abroad can be expensive: neonatal ICU in the USA reaches USD 5,000-10,000/day. Some family plans include children up to a certain age without extra cost—verify the terms.

What's the difference between travel insurance and travel assistance?

Technically, "travel assistance" is a support service (emergency coordination, information, logistical support) while "travel insurance" has financial indemnity component. In practice, modern products mix both. What matters: who pays the hospital and how quickly?

Does travel insurance cover domestic trips?

Some plans cover travel within Brazil—useful mainly for cancellation and lost luggage on domestic flights. Domestic medical coverage is less relevant (you have the public health system and health plans), but cancellation and baggage have real value.

Is travel insurance tax-deductible on my tax return?

Not as standard personal expense. For documented business travel, it can be deductible as professional expense by your company. Check with your accountant for your specific situation.

Can I have two travel insurances at the same time?

Yes—and in some situations it makes sense (credit card coverage + specific insurance). What happens in a claim: each insurance pays proportionally, up to the total expense (you can't receive more than you spent). Inform both insurers when claiming.

Is annual travel insurance worth it?

For those making 4+ international trips per year, usually yes—lower cost per trip and convenience of one policy. Check the daily limit per trip (typically 30-60 days per departure) and if it covers frequent destinations. For 1-2 trips per year, individual policies per trip usually cost less.

Does a credit card substitute for travel insurance?

Not adequately. Premium credit cards (Infinite, Black) include basic travel insurance as a benefit—usually USD 30,000-50,000 coverage, reimbursement model, and support via the card's call center (not specialized TPA). For destinations like the USA, this coverage is insufficient. Use as a complement, not substitute.

How do I compare travel insurances?

Don't compare only price. Compare: 1. Total medical coverage—and sub-limits per procedure 2. Model—reimbursement or direct payment? 3. TPA—who attends the emergency, not who sold it 4. 24/7 support—in your language? 5. Specific coverages—parametric? cancellation? sports?

1. The cheapest comparator never shows sub-limits. Read the full conditions.
2. Model — reimbursement or direct pay?
3. TPA — who handles the emergency, not who sold the policy
4. Support 24/7 — in your language?
5. Specific coverage — parametric? cancellation? sports?

The cheapest comparison site never shows sub-limits. Read the general conditions.

What is a TPA in travel insurance?

TPA = Third Party Administrator. It's the company that actually executes emergency service—calls the hospital, authorizes treatment, coordinates the case, issues the payment guarantee. At most insurers, the TPA is a separate third-party company. At Asteroid, the TPA is MDabroad—integrated, specialized, and part of the same structure.

What's the difference between reimbursement and direct payment?

Reimbursement: You pay the hospital, gather documentation, open a claim when you return, wait for analysis. For USD 40,000+ emergencies, it requires capital available that most don't have.

Direct payment: The TPA contacts the hospital, issues a guarantee, coordinates the case. You don't pay anything upfront. Asteroid operates with direct payment via MDabroad in 162 countries.

Is travel insurance for pets available?

Not standard in human travel insurance. For traveling with pets, what matters is veterinary documentation (health certificate, vaccines) and the entry rules of the destination country. Pet-specific travel insurance exists but is a separate product.

Why is Asteroid different?

Asteroid was founded by MDabroad—the TPA that major international insurers (Allianz International, Cigna International, AXA, and organizations like the UN and the Inter-American Development Bank) contract to manage medical emergencies. We're not a new company selling a third-party product. We're the operator who built its career managing the most complex cases in the industry—now bringing that infrastructure directly to the individual traveler.

Also: automatic parametric payment for flight delays via Blink—no other insurance in Brazil offers this.