Travel insurance is worth the cost

Question: We are a family of four, making our final arrangements for our summer holiday. We have never taken travel insurance before, but our friends keep on warning us that we are taking a big risk. Can you please tell me if travel insurance is worth the additional cost?

Answer: Booking your summer getaway is really an exciting moment, as you discuss new locations, and look forward to a relaxing time with your family.

As the price of flying has come down in the past 25 years, more people spend their holidays abroad, and as a result, the travel insurance market is booming.

Travelling to a foreign land brings new life experiences and a lifetime of memories.

To ensure that those memories are positive ones, I strongly suggest you consider taking out a travel insurance policy.

People don't like to think about what can go wrong at a time when they are looking forward to their annual break, but for a very small additional amount you can have total peace of mind during your entire break.

Trying to resolve any issues while on a vacation in a foreign country, especially if you don't speak the local language, can be very frustrating and can spoil your holiday.

Most travel insurance policies include free calls to international telephone contacts to enable you to deal with any issues which may arise while you are away.

Policies also include provisions for replacing lost travellers cheques, credit cards and visa and travel documents.

However, as a word of warning, it is not advisable to simply find the cheapest price on the internet, and believe that all eventualities are covered.

When you have decided on your dream holiday location, and dates, it is an ideal opportunity to spend some time with your independent financial adviser to discuss your needs.

Your adviser will be able to draw up a plan of all of the required cover for your trip, and offer you advice on the areas which are most important to you.

You will need to consider cover against flight delays, lost luggage, medical care and loss of property.

A standard travel policy will cover you for costs related to basic things such as loss of luggage and medical insurance, which provide you with a great amount of protection should something unfortunate happen to you while you're on vacation.

You will also need to declare to the travel insurer any pre-existing medical conditions, which will be taken into account before your departure.

Certain health conditions will negate the validity of certain cover.

You may also consider specific cover for certain eventualities such as participating in extreme sports or in case you are visiting a country which has any potential risk. Many travel insurance policies now offer annual travel cover, and if you or your family spend time abroad more than once in a 12-month period, an annual policy could offer a cheaper alternative.

When you meet with your independent financial adviser it will be also worth your while to ask them to check your home insurance policy to ensure that all your belongings are fully-covered while you are away.

By making all the necessary arrangements as part of your travel plans, you will be able to completely relax during your vacation, confident that you're fully protected with all eventualities covered while you're having fun.

- The writer is Deputy CEO at Nexus, one of the region's leading financial advisors. The views expressed here are the writer's own and do not necessarily reflect the opinion of Gulf News.

If you have any questions, please email to: advice@gulfnews.com. You can find more advice at www.nexusadvice.com