Important ways travel insurance protects finances

Decide whether the benefits outweigh the cost of a travel insurance plan before your next journey.

06:54 29 August 2013

If you travel once in a while, or possibly more frequently during the year, you might already know about travel insurance. You might have decided not to pay the small amount for coverage you believe is somewhat unnecessary. Many people may believe insurance is just a way to siphon money from your billfold, but the reality is that it is protection and since no one can predict when and if it is necessary, you might want to take another look at the types of things travel insurance can help you with.

• Some countries such as the UK have health insurance coverage for all citizens, but there is a grey area when travelling abroad. If the other country does not offer insurance to foreigners and you have limited to no coverage from your own insurance, you might be responsible for the cost of any injuries or sickness for example that might occur to you or your family. It only takes one unfortunate incident to ruin a trip, and to use up all the funds meant perhaps for a return trip.

 

• Changes are a natural part of life, and many individuals and families have hectic schedules. For whatever reason, plans sometimes need to be rescheduled or cancelled altogether. If you’re used to travelling you may know that many times you might lose money from cancellations, sometimes all the money you invested. That means you might not be able to reschedule your trip and you may have literally lost thousands of pounds. Many travel insurance plans help cover the cost of a cancellation by replacing the funds you lost.

 

• Travel in a new and unfamiliar place can be exhilarating, but can also create some challenges. You might have belongings stolen, or they may be lost due to distraction but the travel insurance can offset the cost of recovery.