Regard travel insurance as useful safeguard

QUESTION: Summer is on its way and I am looking forward to embarking on a huge, once-in-a-lifetime round-the-world adventure with my wife that I've been saving up for over the past few years. I don't usually bother with travel insurance as I rarely go anywhere exotic or risky, but this is a whole new level of vacationing for me and I don't want to put our safety in jeopardy.

ANSWER: Travel insurance should be regarded as a pre-requisite and a useful safeguard when you are travelling. Going on holiday, irrespective of geographic location or perceived risk, can have its potential pitfalls so it is wise to be prepared.

Naturally, the last thing you want to think about before you embark on what sounds like a thrilling adventure are the things that can go wrong, but it is better to do so now rather than scramble to adapt to language issues and confusing processes should a problem arise while abroad. If you have a reliable travel insurance policy in place you can travel with peace of mind, safe in the knowledge that you have a point of contact to help get things back on track should it be required.

But while the notion of acquiring travel insurance sounds fairly straightforward, it could in fact turn into a fairly daunting exercise. Today's market is undoubtedly saturated, and the first thing you need to be aware of is that the cheapest option is not always the best way to proceed.

Personal situation

This is particularly important in your case. as the holiday sounds fairly involved across a multitude of countries. Put some thought into your personal situation and the activities you are likely to engage in. What areas of the holiday do you definitely need coverage for?

Is it worth paying to get compensation if your flight is delayed or your baggage is lost? What if you are injured while engaging in some adventurous activity such as water-skiing or trekking? Even a sport as ostensibly sedate as golf has its risks. If you have your credit card stolen will you have funds for the rest of the holiday?

As there is a galaxy of policies available, you might be forced to select what you think you might need as if from a menu. While it is possible to get insurance through your travel agent, you need to make sure you're getting something that works for you.

In this respect, it may be a good idea to talk to an independent financial adviser about the available options and narrow it down.

Bring your itinerary, and provide a full explanation of what you are planning to get up to. Don't omit any details, no matter how trivial you may think they are. Of vital importance here is to disclose any pre-existing medical conditions or medication you are taking, as this may invalidate your policy. Please note that there are often additional charges if you require cover for adventure sports, and some insurance policies do offer a sports package which may well be worth taking out.

Global cover

If you are flexible about travel dates, you should be able to get a policy that provides global cover, so it doesn't matter when you move from one country to the next.

The cost of a travel insurance policy will vary depending on how extensive you want the cover to be. However, a standard policy covering medical expenses, financial (such as money invested in non refundable pre-payments), and other losses incurred while travelling, will generally cost between Dh350 to Dh400 per person up to the age of 64 years (100 per cent increase for persons aged 65 - 70 years), and this would depend on the duration of travel, say up to 31 days or 62 days.

Start planning now and enjoy your vacation!

The writer is Director, General Insurance, Nexus Insurance Brokers LLC. Opinions expressed here are his own and do not reflect those of Gulf News.