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Why You May Need More Than Travel Insurance on Your Next Trip

Planning an overseas vacation can be an exciting experience. Choosing a destination, making travel arrangements, and setting your itinerary may be tedious tasks at times, but they’re ones that many of us happily take on. After all, careful planning early on could mean a more relaxed, drama-free holiday.

However, no matter how well we plan, the unexpected can still happen during the trip. Though no one likes to think about what could go wrong, savvy travelers often purchase travel insurance to help with any unforeseen events that may occur. But is travel insurance alone enough to shield you and your family?

Before packing your suitcase, you may want to consider other types of insurance to compliment a travel policy. These could help provide more comprehensive financial protection once you’ve returned home.

What Travel Insurance is Good For

As the name implies, travel insurance is designed to help holidaymakers cover the costs of unexpected events that might happen during their trip. Travel insurance policies usually cover a range of incidents, including lost luggage, flight accidents, trip cancellations and even medical expenses. Policies are typically purchased when you book a trip and only last for the duration of your journey.

Generally, this is the only type of insurance travelers take out before a trip. Whilst this might be enough to cover bad luck during your vacation, travel insurance alone may not provide sufficient financial cover beyond your journey. If tragedy were to strike, you or your family might need support for weeks, months or even years after. The benefit provided by travel insurance is unlikely to provide this level of assistance.

Other Types of Insurance to Consider

Having other types of insurance policies in place prior to your trip could help your family cope a little better once you’ve returned home. Here are a few common varieties you may want to think about.

Life or Funeral Insurance
Travel insurance policies can often pay a lump sum benefit if the insured were to pass away during their trip or for a period of time afterward. However, there is usually a big caveat to this: travel insurance typically only covers death that is caused directly by an accident. An insured person who passes away during a trip as the result of natural causes would unlikely be covered by their travel insurance policy.

Life and funeral insurance policies typically pay the benefit if someone passes away due to a broader range of circumstances. This can include things like a heart attack or illness (subject to any health exclusions that may be placed on the policy and stand down periods that may apply). In this way, funeral insurance could help loved ones bring your body home for burial, and possibly pay for the service as well.

In the case of some life insurance types, the total benefit amount might be much larger than what travel insurance can offer. This could help provide your family with more substantial and longer lasting financial security. They may be able to do things like pay down a mortgage or help cover school fees, in addition to planning a funeral service.

Total and Permanent Disability Insurance
The impact of a serious accident could last long after your vacation has ended. Whilst travel insurance may be helpful in paying for the cost of treatment and the trip home, the support it provides often ends there. This could leave you vulnerable to financial hardship in the long term.

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Total and Permanent Disability (TPD) insurance can provide a lump sum if you become disabled due to illness or injury, and are unable to return to work as a result. The benefit amounts offered may also be more than what you would get through travel insurance, helping to provide better protection against financial hardship.

Income Protection Insurance
Similar to TPD insurance, income protection could help provide more lasting support for you and your family. This type of insurance is designed to cover a portion of your income if you are unable to return to work.  Unlike the types of insurance already mentioned, income protection pays a monthly benefit that could help you and your family pay household bills and expenses. This could help you focus on your recovery, so you can get back to work.

Ready to Roam
A well-earned holiday is a time to relax and make lasting memories with those you love. We might not like to think about all that could go wrong, but it may be smart to plan for the worst—no matter how unlikely it may be. Before heading out on your next adventure, consider if insurance beyond travel cover might be right for you and your family.

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