If you are planning to travel for any reason be it for business, beach relaxing, round the world adventurous trips, or any other holiday reason, it is wise to get travel insurance to avoid being confronted with sudden expenses.
If you do purchase a travel insurance coverage, you should also fully understand the terms and how much you will be covered for.
What you can expect with travel insurance coverage
Usually travel insurance will cover the following issues, although it is important to find out to what extent these are covered.
If you purchase certain budget options, you may well be covered for theft of property, but if you are only covered for a fourth of your property’s worth, it will not serve its purpose.
You should also look at the ‘excess’ – this is the amount you need to pay yourself in the event of a claim before any payments are made back to you.
Overseas emergency medical assistance: If you are travelling to countries with high healthcare costs, such as the USA, you should make sure you have marked the unlimited section of the policy, in ordered to be fully covered.
Overseas medical and hospital expenses: The amount you are covered for can differ considerably, depending on which policy you opt for.
If you have a pre-existing condition, you should inform the insurance company of this, or your cover may be void.
Luggage and Personal Effects: You should closely consider the figure allotted for this – if you are travelling with particularly expensive equipment, it should be covered. This also covers travel documents.
Delayed Luggage Allowance: If your clothes are lost, or arrive a few days or even a week after your arrival, you will need some new ones.
Permanent Disability: Most policies and insurance companies cover this event.
Accidental Death: Arguably benefiting your loved ones more than you, but worth considering.
Personal Liability: If you cause an accident, you’ll need to pay damages.
Cash: Cover for money stolen from your person.
Cancellation Fees and Lost Deposits: If for any (good) reason you are forced to cancel or delay your trip, such as illness or poor weather.
Alternative Transport Expenses: such as in the event of flight cancellation.
Additional Expenses: a whole range of unforeseen circumstances can lead to you incurring extra costs and you should verify what the insurance policy includes.
Loss of Injury: Again, some more expensive policies will cover you if you sustain an injury overseas and cannot work upon returning home.
Travel Services Provider Insolvency: In the unlikely event of your airline going bankrupt before you have a chance to board, some policies will have you covered.
However unlikely this may seem, nowadays it is becoming more common to see an airline shut down before you actually take the flight.