Few things are more exciting then heading on a well-earned vacation! There’s a lot of planning that goes into the perfect holiday—from picking a destination to packing your suitcase—and no one wants to see this hard work derailed by unforeseen events.
Still, the unexpected can happen, and it could impact more than just your travel plans. Luckily, there are many different types of insurance products available to help protect you and your family’s trip, home and financial future.
Here are five types of insurance that travelers may want to look into:
- Travel Insurance
Savvy globetrotters are already hip to travel insurance. These short-term policies cover many unexpected events that could disrupt a vacation. This may include anything from lost luggage and rental car accidents to trip cancellations and medical expenses. A travel insurance policy could help holidaymakers salvage their trip or, in a worst-case scenario, come home early.
- Life Insurance or Funeral Insurance
No one expects tragedy to strike on holiday, but unfortunately it does happen. Life and funeral insurance policies are designed to help you or your family in ways that travel insurance typically cannot.
Life cover usually pays a much larger benefit than travel insurance. If the worst were to happen, this could be useful far beyond your trip, helping your family get back on their feet if you pass away. They could use the money to pay down a mortgage, help cover school fees or take some time off work to cope.
Whilst travel insurance may pay to transport a body home for burial, that amount may not cover the cost of the funeral service. An average funeral in New Zealand can cost from $4,000 to $15,000, according to Dollar Insurance. Funeral insurance could help cover funeral these costs once you arrive home or help with anything else your family might need at the time.
And with both life and funeral cover policies, a benefit may be paid if someone passes away from a broad range of circumstances, including things like heart attack or illness (subject to any health exclusions or stand down periods that may apply). Travel insurance usually only covers deaths caused directly by an accident.
- Total & Permanent Disability Insurance
Much like life insurance, a total & permanent disability (TPD) policy could help you or your family long after your trip has ended. This type of policy can provide a lump sum if you become disabled due to illness or injury and can’t return to work.
Travel insurance may help pay for initial treatment and the trip home, but the support it provides generally ends there. You may face more medical bills for ongoing treatment, possibly whilst being unable to work. TPD insurance could help pick up the slack, providing better protection against long-term financial hardship.
- Income Protection Insurance
Another way to help provide ongoing financial support beyond your holiday is through income protection insurance. Whilst the policy types already mentioned typically pay one lump sum, income protection pays a monthly benefit for a set amount of time. This way, you can focus on recovering from an accident or serious illness, with less worry about how you’ll pay day-to-day household bills and expenses.
- Home & Contents or Renters Insurance
Most of the policies we’ve talked about help protect your ability to provide an income in some way or another. This is incredibly important, but an accident, illness or worse aren’t the only things that can happen whilst you’re away. Your home and everything in it may also need to be properly protected during your travels.
Homeowners insurance can help protect your home and belongings if they’re damaged by things like fire or windstorms, but theft may be a more pressing concern for owners and renters. Thieves know what signs to look for to determine if someone has gone on vacation. Should your home or rental property become a target, insurance could help replace anything that is damaged or stolen.
Travel is often a way to escape the stresses of everyday life, but it can sometimes be hard to leave them behind completely. Before you head off, you may want to review your current insurance policies. Having the right protections in place could help you rest a bit easier and make the most of your trip.