If you’re planning a holiday, it might help to put some thought into your finances. Make sure mishaps or medical needs don’t take the glow out of your holiday tan.
After all, a holiday can be a lot more fun when you know that you can make the most of your spending. Here are some helpful tips to achieve peace of mind wherever you are headed.
Travel expenses
Start by considering where you’re going and how you’re going to get there. The cost of travel to your destination is often one of the biggest holiday expenses, and therefore one of the most important to look at upfront. If you’re planning a long-distance trip, make sure you book well in advance.
Living expenses and activity costs
The daily cost of being away includes food, drink and accommodation plus any activities you plan on doing. Remember to adjust these to reflect how expensive or cheap your destination is relative to home.
If you’re a keen shopper, you might find something you just couldn’t get at home. If you’ve got an adventurous spirit, perhaps you’d like to book an activity like whitewater rafting or a day out on a yacht. Wherever you travel, the chances are that something special is going to catch your eye.
Get travel insurance sorted before you go
By this stage of your budget you should have a good idea of what an investment a holiday can be. That’s why it’s important to protect your interests by including travel insurance on your list of expenses. Insurance can cover you for any mishaps on your holiday, or if your travel plans have to change due to unforeseen circumstances, the costs of the changes (or lost deposits). With this in mind, it’s a good idea to get your Travel Insurance at the same time you pay for tickets.
Most people think travel insurance is just for overseas travel, but you can also get domestic travel insurance.
Disclose pre-existing conditions – Most policies either don’t cover pre-existing conditions or will only do so for an extra premium. Having said this, declaring everything to the Insurance provider is always the right way to go – you may find a claim is declined due to non-disclosure, potentially leaving you facing a large medical bill. Even if it is a simple broken arm – declare everything to the Insurance provider, so you can have peace of mind about what you are covered for.
Select an excess carefully – Some policies offer a range of excesses, and examining these options can be a good way to save a few dollars on your Travel Insurance premium. However, keep in mind that it’s not always worth selecting a higher excess.
Know what you are covered for – If you are planning on an adventure holiday, you might want to check what your policy actually covers you for. Many policies exclude ‘high-risk’ or extreme activities, such as running with the bulls or ski-diving. Even some moderate activities such as scuba-diving may be excluded.
Before you take the leap – check your policy wording.
Know your limits – Medical costs overseas can be exorbitant – so make sure you know the limits on medical cover before you travel. This way you’ll return home with loads of photos and videos, rather than a massive bill.
It’s not just medical cover though; most policies will only pay a certain amount for items such as jewellery, luggage and electronics. If you have an item over the limit, you can buy extra cover – but you need to tell the Insurance provider.
