by Kantha Wijeratne

Created on: September 19, 2008   Last Updated: November 04, 2008

Travel insurance is perhaps the last thing on your mind when you plan that dream getaway. You are more likely concentrating on picking the perfect destination, planning itineraries and making reservations for flights, hotels and places you wish to visit. And of course you aim to have the best vacation possible at the least cost. Spending money on travel insurance seems a useless expense. So why not go without it?

Travel insurance is important. A holiday is something you save and plan for. You invest funds to have a memorable and enjoyable vacation. Fortunately most holidays do turn out that way. Yet there are also instances when things go awry. Flight cancellations or delays, lost baggage to medical emergencies and acts of terrorism are events that cannot be ruled out. Investing in a travel insurance policy helps to recover at least a part of your investment. A plan that meets your specific needs provides peace of mind.

Most travel insurance policies have two main components. One part covers trip cancellations, flight delays and interruptions as well as lost or stolen baggage. The insurance provider will advise as to what extent you will be reimbursed for any of these events.

The other part covers medical emergencies and evacuations. It provides medical care in an accident or emergency, accommodation and transfers. Most policies do not cover existing medical conditions Check whether your domestic health insurance plan or the cover provided on a credit card is valid for international travel. Inquire whether additional health coverage can be purchased.

Some insurance providers also offer protection against identity theft. Such cover is usually valid for about six months and is subject to a limited reimbursement amount. Imagine the dismay you would feel if your wallet or purse was snatched or lost. This type of cover can make you feel more secure as you explore exotic locations.

How much will a travel policy cost? The premium you pay depends on your age, travel cost, duration and the coverage you want. Most insurance companies and travel agencies will quote rates to meet your specific needs. Compare quotes given by these sources. Choose wisely from a known and trusted insurance provider. You don't want to find out that the provider is bankrupt when you need help.

A travel insurance policy is valuable only if it reimburses you for the pain of mind, difficulty or problem you unexpectedly encounter while traveling. To ensure it does, it is important that you ask questions before finalizing the contract. Understand all insurance related terms such as deductibles, liability and known perils. Verify the services offered including 24 hour assistance and how to lodge a claim.

The phrase "Some conditions apply" is an all too familiar one that we associate with offers of financial rewards. So comply with the conditions required to get your claim honored. Rest assured that you will enjoy your holiday come what may.

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