To the question in your mind as to whether it's advisable to get any form of holiday insurance in the first place, my answer to you is an unequivocal YES.

The additional cost of a travel insurance goes a long way towards giving you peace of mind in the event any emergencies occur.

It's so crucial to have some form of insurance cover that even a low cost insurance is better than nothing at all.

There are may types of clauses, terms and conditions when it comes to such insurance, but generally they have a list of standard and optional features, and cover the following.

Types of cover

Typically, you can choose from among three options, economy, standard or premier (premium) levels. Decide in advance the level and probability of losses, injuries and emergency situations you might encounter, the financial impact from them, and the percentage of loss that you want the policy to offer protection on.

Period of Cover

For the frequent traveler, many insurance companies an annual cover that works out to be cheaper than if you bought a travel insurance for each and every trip. Look into your likely schedule for the year and inform the travel consultant of the dates of travel and destinations. The consultant would then be able to advise you on the relative pros and cons of getting an annual cover vs per trip insurance.

Number of Individuals

Examine the nature of the people your travel group comprises. How are they related? This information is needed to decide if you will purchase a policy to cover the individual, couple or family. There are single parent family options available too. Work out the costs, benefits and features of each type of application.

Features

Ascertain if the policy provides protection for:

  • Medical expenses - this protects you from exorbitant charges if you encounter medical emergencies abroad
  • Cancellation and delays- flights and travel arrangements sometimes go awry, and you'd want to get your money back as soon as possible
  • Baggage delays and loss - a minimum insurance cover ensures you have spare cash to purchase travel essentials
  • Personal money, expenses and excess - this protection offers cash if needed in any type of emergency

You'll also need to inquire if the company is flexible enough to allow for reduced payments if you opt not to sign up for some of the features.

Conclusion

Many are tempted to put every last cent towards actual holidaying activities. This is one of the biggest mistakes one can make as all it takes to completely ruin the entire holiday is the occurrence of one unforeseen incident.

A couple of extra hundred dollars that goes into purchasing a decent holiday insurance, no matter how cheap, could mean the difference between financially surviving a holiday mishap and short-term bankruptcy.

So, whether you're a backpacker who just wants to ensure that you're covered for medical expenses, or a seasoned business traveler who's looking for financial peace of mind, do look around and perform the necessary research and comparisons for the best deals.

Forums are a good place to ask questions and read through the experiences others before you have gone through. I've provided some links in the menu to online communities focused on discussing insurance topics.

Good luck!