Get this right or you could lose tens of thousands of dollars

Good travel insurance cover is essential when travelling overseas, but unfortunately it appears that up to up to 30% of travellers go overseas without adequate insurance, which is total madness!

The emphasis on TV and in the press has been very much on the medical cover which is the most important element. Without adequate cover, an accident overseas can cost tens of thousands in hospital and medical fees and even run into 6 figures. I have seen a heart attack patient in the USA run up a bill over $100,000 and that was 20 years ago! And don’t say it can’t happen to me as it can. One step wrong on the street in busy traffic and…. So get GOOD and APPROPRIATE travel insurance to give you peace of mind. If you say that you can’t afford it, then stay home.

Loss of luggage, theft, missed connections due to flight delays, car rental excess and 3rd party insurance cover are all other important elements of a good policy but there is one very important one that has been forgotten –

CANCELLATION COVER.

Travel insurance will also refund any monies paid as deposits or final balance for your holiday if you are unable to travel for certain reasons. Illness of one of the travelling party or near relative is the most obvious and important, but also work related reasons may also be covered. It is an area where you really need to go into the fine print as it is a minefield. However, it is an important part of your travel insurance. But there is a catch – it doesn’t take effect until you take out the travel insurance – well that makes sense you say. OK let’s look at a scenario.

Mary and Jim have saved for years for a great overseas holiday, and are going on a 2 weeks cruise on a 5-star ocean liner and a 15-day river cruise in Europe from Amsterdam to Budapest also on a luxury vessel. They make a final payment of the total cost of $40,000 four weeks before departure, and then two weeks before leaving Jim takes a fall at work and breaks his leg. He is in plaster and unable to travel – DISASTER. They were going to take out the travel insurance SOONER but hadn’t got around to it yet – they thought it OK if they bought just before they left. WRONG. They now discover that the cancellation fees at such a late stage are 80%. They lose $32,000 – OUCH! How could they have fully covered themselves? Here is how.

The day that you pay a deposit of any kind on a holiday take out your travel insurance – SAME DAY. Then the insurance has the same date as your first receipt and there can be no awkward questions from the insurance company later about exactly WHEN you took it out. You now have cancellation cover for all deposits and final monies that you will pay out. And here is the important part. You only need to take out the cover for TIME OF ABSENCE OVERSEAS. So if you are overseas for 6 weeks you take out the cover for 6 weeks, even if you are taking out the cover 6 months in advance of travel.

Yes,  there are conditions that apply, in particular,  those relating to pre-existing medical conditions of the members of the travelling party and near relatives, but that information is contained in the PDS (Product Disclosure Statement) of the policy. Find the PDS and read it very carefully to be informed about the exclusions.

Yes most of us find this topic tedious and boring, but ensuring that you have good travel insurance cover (not cheap or inadequate cover) is absolutely essential, so take your time to find the right cover for you.

Read all about travel insurance in my Number 1 best seller on Amazon – The Happy Holiday Travel Planner.

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