Designed to protect you from financial loss, travel insurance gives you peace of mind when you’re planning a trip. Wherever you’re going on holiday, you don’t want to consider the possibility of something going wrong. However, it’s best to be prepared for any eventuality.
If you become unwell or injured while you’re abroad, you may need to pay for medical care. Unlike the UK, not every country has a state-funded health system. Furthermore, as you aren’t a resident of your host country, you may not be eligible to access state-funded healthcare, even in country’s which operate such a system.
With the right travel insurance cover, you can ensure that any medical costs you incur while you’re away are covered or partially reimbursed. Of course, travel insurance policies can vary dramatically and some things won’t be covered by every insurer or every policy. If you’re heading off to take part in high-risk sports, for example, you’ll need to check whether your travel insurance policy includes coverage for any injuries which may occur as a result.
As well as providing you with cover while you’re away, a travel insurance policy can also give you cover during the between booking your holiday and departing. Many people books flights and accommodation months or even years in advance of their actual departure date, and if something prevents you from going in the meantime, you could lose your deposit and still be required to pay for the full cost of your trip.
If you have an appropriate travel insurance policy in place, however, you may be able to recoup the cost of your holiday, depending on why you’re no longer able to go. If you can’t travel due to an unexpected illness or injury, for example, there are many travel insurance policies which will cover the cost and prevent you from being out of pocket.
What is lifestyle excess insurance?
With travel insurance explained, it’s time to consider whether you need lifestyle excess insurance as well. When you take out an insurance policy, your insurer will stipulate a compulsory excess. The is an amount that you’ll have to pay if you make a claim, and it can vary quite considerably.
In addition to this, you may choose to add a voluntary excess as this can bring down the cost of the policy and your premiums. If you never have to make a claim, you’ll have avoided having to pay either type of excess and have saved money on the policy itself.
However, if you do need to make a travel insurance claim, you’ll be required to pay your compulsory and voluntary excess, which could be a significant amount. With lifestyle excess insurance, you can cover your excess, so that you won’t have to pay out a costly sum in the event of making a claim.
Whilst having travel insurance is a great way to protect your financial interests when you’re booking a holiday, excess protection ensures you won’t be prevented from making a claim due to the high cost of either a compulsory and voluntary excess.