Whether it’s your first time on a plane, or you’re a seasoned traveller, an international holiday is always exciting. However, amidst the thrill of new experiences, it’s essential to consider the unexpected events that can occur during travel. This is where travel insurance becomes invaluable, offering a safety net that ensures peace of mind throughout your trip.

Medical Emergencies

One of the most significant benefits of travel insurance is coverage for medical emergencies. While we hope to remain healthy during our travels, unforeseen illnesses or injuries can happen. Overseas medical treatments can be exorbitantly expensive, and Medicare or private health insurance often doesn’t extend beyond Australian borders. Travel insurance can cover these unexpected medical expenses, ensuring you receive the necessary care without the burden of hefty bills.  Even if you’re travelling to a destination with a reciprocal healthcare agreement, you may not be fully covered for medical expenses. Take Jeanie, for example. While travelling through the Cook Islands, she had an accident that required follow-up surgery. On her way home to Australia, she stopped in New Zealand, where she initially believed she would receive medical treatment under the reciprocal agreement with Medicare. However, she later learned that because the accident had occurred outside New Zealand, she wasn’t covered, leaving her with unexpected medical bills. In this case, travel insurance could have covered these costs, preventing financial stress on top of an already difficult situation.

Trip Cancellations and Interruptions

Life is unpredictable, and sometimes, unforeseen circumstances may force you to cancel or cut your trip short. Travel insurance can reimburse non-refundable deposits and expenses in such situations, providing financial protection against unexpected disruptions.  Unforeseen circumstances can arise at any time, potentially disrupting your travel plans. Consider William, who had been eagerly anticipating his tour from Perth to Japan. Unfortunately, two days before departure, he suffered a fall and broke his hip, making it impossible for him to travel. Without travel insurance, he would have lost over $10,000 in non-refundable expenses. Even something as minor as a sudden illness, like gastro on the morning of departure, could result in significant financial loss if you don’t have adequate coverage.

Lost or Delayed Luggage

Misplaced or delayed luggage can be a significant inconvenience, especially when you’re far from home. Comprehensive travel insurance policies often include benefits for lost, stolen, or damaged personal belongings, as well as coverage for essential items if your luggage is delayed.  Losing your luggage can be an inconvenience, especially if you’re embarking on a trip with no time to wait for your bags to catch up. This was the case for Margaret, who had planned a South Pacific cruise departing from Brisbane. After flying in from Hobart, she discovered her luggage hadn’t arrived with her. With her cruise set to depart, she was left without clothing or essentials for the 10-day journey. Fortunately, her travel insurance covered the cost of replacement items until her luggage reached her at the first port of call in Noumea, saving her from unnecessary stress and additional expenses.

Coverage for Pre-Existing Medical Conditions

Many seniors have pre-existing medical conditions, which can complicate travel plans. Fortunately, some travel insurance providers offer coverage for certain pre-existing conditions, either automatically or after assessment. It’s crucial to disclose all relevant medical information to ensure you’re adequately covered.   Some travellers assume that having pre-existing medical conditions means they can’t get travel insurance or that it’s not worth purchasing. However, depending on the policy, you may still be covered for unexpected illnesses unrelated to your pre-existing condition. For example, if you develop gastro or the flu just before departure, travel insurance could still reimburse your cancellation costs—even if your policy excludes certain pre-existing conditions. It’s always worth exploring your options to ensure you have protection where it matters most.

Check the fine print

It’s easy to overlook the finer details of an insurance policy, but failing to read the terms and conditions can lead to costly surprises. Peter, a 93-year-old traveller, had booked a $9,995 tour, but just before departure, he contracted COVID-19 at a family wedding. Expecting his insurance to cover the cancellation, he was shocked to learn that his policy had a $3,000 excess for travellers over 90 and excluded COVID-related claims for those over 85. Worse still, Peter never received the policy via email and assumed he was fully covered because the premium had been deducted from his account. Had he reviewed the terms during the cooling-off period, he could have switched to a policy that better suited his needs—potentially saving him thousands.

24/7 Emergency Assistance

Navigating emergencies in a foreign country can be daunting. Many travel insurance policies provide 24/7 emergency assistance, offering support and guidance during unforeseen situations, ensuring you have help whenever and wherever you need it.

Optional Add-Ons

Depending on your travel plans, you might engage in activities like cruising or adventure sports. Some travel insurance policies offer optional add-ons, such as cruise cover or adventure packs, to ensure you’re protected during these activities. It’s essential to review your policy and consider any additional coverage you might need based on your itinerary.

A Case Study

The importance of travel insurance becomes even more evident in extreme situations. Take Norman, a 75-year-old traveller from Eastwood, who experienced a serious medical emergency while visiting Europe. His treatment and medical evacuation resulted in a $600,000 claim, which was fully covered by his travel insurance. Without it, he would have faced an overwhelming financial burden.

Another crucial consideration is what happens in the unfortunate event of a traveller passing away overseas. Repatriating a loved one can be incredibly expensive, and without travel insurance, families may struggle to cover the costs. Having the right coverage in place can ease the financial and emotional strain on your loved ones during a difficult time.

Checklist: Must-Ask Questions Before Choosing a Travel Insurance Provider

1. What is covered under the policy for medical emergencies?
2. Are pre-existing medical conditions covered, and if so, what are the requirements?
3. What are the limits on medical expenses and hospitalisation coverage?
4. Does the policy include trip cancellation or interruption coverage?
5. What are the coverage limits for lost, stolen, or delayed luggage?
6. Are adventure activities or cruise travel covered under the policy?
7. Is there a 24/7 emergency assistance service available?
8. Are there any age restrictions or premium adjustments for seniors?
9. What is the claims process, and how long does it take to get reimbursed?
10. Are there any exclusions or specific conditions to be aware of?
11. Does the policy cover travel disruptions due to pandemics or natural disasters?
12. Can the policy be extended if the trip is unexpectedly prolonged?

Conclusion

While travel insurance might seem like an unnecessary expense at times, it’s a small price to pay for the security and peace of mind it provides. As you plan your next international adventure, consider the potential risks and ensure you’re adequately covered. If something does arise, travel insurance will be worth its weight in gold, and it’ll give you the best chance of getting back to your holiday as quickly as possible. Safe travels!