What are the Benefits of Travel Insurance

Travel insurance can be an advantage for travel within Australia, although most Australians do not take it out. But it is for overseas travel that travel insurance is absolutely essential. Within Australia you can get easy medical assistance, but overseas an injury or illness can cost you an absolute fortune. An operation in the United States could cost you up to $250,000 USD which is around $325,000 AUD. If you fall ill in a third world country you may not trust the hospitals there and want to get treated at home or in another western country.

Many standard travel insurance policies have up to $10 million cover for overseas, medical, hospital, repatriation and evacuation expenses. You can also get hospital cash allowance of up to $12,000 for each day you are in hospital. Your holiday may be ruined by accident or illness, but at least your bank balance will not be.

A death benefit is also payable to your estate if you are injured while overseas, and you die of that injury. Your funeral expenses are covered, as long as you have travel insurance for the country in which you die. Permanent disability cover is provided if you become permanently disabled due to an injury while overseas. You are also covered for your loss of income if you are injured while away on your trip and are incapable to attend your usual work in Australia.

Another essential benefit of travel insurance is legal liability. If you cause injury to other people or their property you could be liable for millions of dollars. With travel insurance you are covered for around $2.5 million in legal liability.

Travel insurance can really help if your entire luggage including, clothes, money, passport and travel documents are stolen. You get around $24,000 cover, including emergency cash to cover buying essential clothing and accommodation. You should keep photocopies of your passport, traveller’s checks and airline tickets, separate from the originals. It is also a good idea to have a credit card in your wallet, so if your traveller’s cheques are stolen you can get some cash.

Travel insurance can cover any rental vehicle insurance excess which you may become liable to pay in the event of a car accident. You are also covered for unexpected travel and accommodation expenses such as if you have to return home unexpectedly for an emergency situation such as a death in the family, or if you are delayed by a scheduled transport provider for more than 12 hours.

Travel insurance policies may vary, so you should read the policy carefully, including any conditions or exclusions. You need to have an understanding of how to claim, and should take several claim forms with you, in different pieces of your luggage. For more information go to http://www.creditworld.com.au/travel-insurance.html.

Summary

• Travel insurance is essential for traveling overseas.
• Cover for medical expenses while overseas is especially vital.
• Read the fine print of your travel insurance policy before signing the contract.
• Keep copies of all your travel documents separately from the originals.
• Take several claim forms with you and know how to claim.

Article correct at its author date: Dec 2006. Copyright Virtual Office Space, Any unauthorised reproduction of this article will be prosecuted to the full extent of the law. Credit Cards Australia.

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