So I was listening to an interesting conversation a few weeks ago about travel insurance that prompted me to write this blog entry. A good friend of mine was deliberating whether to get travel insurance or not for her six-month get away to Scotland. The main motivation for her not to get travel insurance was the significant cost with such low cover. I could totally understand what she was getting at but is travel insurance really worth neglecting to save money?
After some research I have gained some interesting knowledge that I would like to share with you, so you can look at both sides of the argument and make an informed decision for yourself the next time you travel.
Why you should get travel insurance?
Like other insurance products, travel insurance will provide you with peace of mind, protection and could end up saving you lots of money in the case of an unforeseeable event. There are quite a few different types of travel insurance available in Australia to alleviate concern including:
Standard or budget travel insurance is better than no insurance according to some because travelling without insurance could end up breaking your bank. Majority of standard cover insurance providers will cover travellers for overseas emergency medical assistance and medical/hospital expenses, just in case something happens to you.
Comprehensive travel insurance:
If you desire more cover then comprehensive travel insurance will probably alleviate your travel concerns because this level of cover will protect you from many unforeseeable events. Majority of comprehensive travel insurance providers will cover you for:
· Cancellation fees
· Overseas medical assistance
· Overseas medical and hospital expenses
· Lost travel documents, credit cards and traveller’s cheques
· Travel delays and will include compensation for meals, accommodation etc.
· Alternative transport costs if your pre-scheduled transport is cancelled, delayed or diverted
· Permanent disability and loss of income
Travel insurance for frequent travellers:
If you are fortunate enough to travel frequently, many insurance providers can cater to your travel needs. The biggest perk with frequent travel insurance is that it covers you for a longer term than other travel insurance, most often for 12-months. This type of insurance normally will provide you with comprehensive cover and it will save you from having to get insurance every time you travel. Additional information can be located here: http://www.moneybuddy.com.au/insurance
Domestic travel insurance:
If you are only intended to travel around Australia, you will only need domestic travel insurance. Many insurance providers offer this option and it usually provides cover for cancellations, delays, loss or damage to luggage and personal belongings.
Why you do not need travel insurance?
The main motivation on why many people opt to not get travel insurance is ultimately to save money in the short-term because really, if something happened in the long-term you really will not be saving without travel insurance.
But is there more reasoning for some for choosing to not get travel insurance other than saving money? Well, after some research and talking to people the answer is yes!
The main reasons for people not getting travel insurance is activity exclusions that are found at the bottom of travel insurance cover details in fine print. You would expect certain activities to be exempt from cover but there are surprising some common activities that are not included on some policies such as white-water rafting! So if you get injured partaking in these activities, do not expect your travel insurance to be there for aid.
Another common factor amongst people is the harsh reality that insurance claims can fail due to inadequate evidence, which can be very timely to acquire. For example, if you decide to cancel a holiday you will need evidence of an event to why you cancelled the flight to make a successful claim. This can make any benefits of taking out travel insurance redundant!
Ultimately, the decision to take out travel insurance or not is left in our hands but this is how I would approach my decision. I would analyse the risks of the country I am going to, the value of my luggage and the type of activities I plan to undertake before taking or not taking out travel insurance. Also, always read the fine print, this may ultimately determine your decision. Most importantly, be safe on your travels and enjoy.
Have you every wondered what a Medicare Levy surcharge was and if it effects you? Well I am sure there are heaps of Australians out there thinking the same thing, especially those in there twenties when they may start having to take care of their own private health care.
So what the Medicare Levy surcharge is, is a fee for individuals and families that possess incomes that are above a specific income threshold and do not have an appropriate level of private patient hospital cover for themselves and/or their family.
Article provided by http://www.moneybuddy.com.au