The issue of whether or not to obtain travel insurance when planning a trip is a tricky one. There is much to consider, but, in the end, I think it’s mainly a question of costs.
For instance, if I’m taking a trip stateside and my total budget is around $3000 dollars or less, I’m probably not going to spend the extra money to insure it. That’s not to say I wouldn’t incur some expenses if unforeseen circumstances interrupted my plans, but that’s a gamble I’m likely to take.
However, as my budget escalates, the acquisition of travel insurance begins to make a lot more sense. My family and I take an annual vacation together, and, depending on our destination and the number of flights, hotel rooms, and other necessities we require, the costs can climb fairly quickly. In that case, I almost always opt to insure our trip.
There are generally two different kinds of travel insurance policies:
Trip Cancellation Protection: This policy typically provides a refund if the insured cannot travel due to being injured or sick, or if a flight has been cancelled or a connection has been missed. It also provides protection if luggage is lost, stolen, or damaged.
Comprehensive Travel Insurance: This policy generally covers all of the above, in addition to any expenses related to medical or dental emergencies, medical or disaster evacuations, and accidental death. Travel delay, personal liability, legal expenses, and tour operator default are also usually covered.
Travel experts generally recommend buying a comprehensive policy, especially if you’re traveling overseas or to a destination that is experiencing political unrest.
If Things Go Wrong
Travel insurance is an important consideration for all kinds of travelers. Families going abroad on a summer vacation, business people on an extended professional trip, newlyweds on their honeymoon, or retirees on their dream vacation.
If a health emergency should arise in a foreign country and medical care or medical evacuation is required, a comprehensive travel insurance policy would cover those expenses.
A regrettable example of this kind of misfortune happened to the parents of a colleague of mine. His mom and dad had saved all their lives to travel to Rome to see the Vatican, among many other sights and treasures. Near the end of their trip, his father suddenly passed away.
Not only did their travel insurance cover all the expenses to bring his dad home for burial, but insurance representatives also helped his mom navigate all the bureaucratic red tape that was required to make those plans and preparations.
In circumstances such as that, travel insurance may be critically important.
Travel Insurance & Financial Planners
When we’re booking a trip online, we are often prompted by the website whether we’d like to insure our trip. Unfortunately, there are a couple of problems with that kind of scenario.
If I’m making an airline reservation and I’m asked if I want to purchase travel insurance, any policy I buy is only going to provide coverage for that specific flight, not for other segments of my trip.
Secondly, buying travel insurance online from one website is generally not the most cost-effective way to purchase it. It is prudent to navigate online and compare policies.
For more information, please consult with your travel insurance agent.
United Capital Financial Advisers, LLC (“United Capital”), is an affiliate of Goldman Sachs & Co. LLC and subsidiaries of the Goldman Sachs Group, Inc., a worldwide, full-service investment banking, broker-dealer, asset management and financial services organization. Investing involves risk and clients should carefully consider their own investment objectives and never rely on any single chart, graph or marketing piece to make decisions. The information contained herein is intended for information only, is not a recommendation to buy or sell any securities, and should not be considered investment advice. United Capital does not provide legal, tax or accounting advice. Clients should obtain their own independent legal, tax or accounting advice based on their particular circumstances.
United Capital Financial Advisers, LLC d/b/a Goldman Sachs Personal Financial Management (“GS PFM”) is a registered investment adviser and an affiliate of Goldman Sachs & Co. LLC and subsidiary of The Goldman Sachs Group, Inc., a worldwide, full-service investment banking, broker-dealer, asset management, and financial services organization.
The information contained herein is intended for informational purposes only, is not a recommendation to buy or sell any securities, and should not be considered investment advice. GS PFM does not provide legal, tax, or accounting advice. Clients should obtain their own independent legal, tax, or accounting advice based on their particular circumstances. Please contact your financial adviser with questions about your specific needs and circumstances.
Information and opinions expressed by individuals other than GS PFM employees do not necessarily reflect the view of GS PFM. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice.
Tell us about yourself at no cost or obligation.
By submitting this information, you hereby authorize and request that PFM contact through any direct contact and any automated means, including but not limited to use of an auto-dialer, pre-recorded/artificial voicemail and SMS, and by email to discuss PFM’s products or services and you are consenting to receive certain materials from PFM by email or other means of electronic delivery. In addition, you acknowledge that PFM will use your information as described in its Privacy Policy and Terms of Use. PFM may share your information with other subsidiaries of The Goldman Sachs Group, Inc. and they may also contact you directly through any of the same means listed above.
To withdraw your consent to receive calls or to change your contact preferences, please call us at 1 (800) 796-3315. To stop marketing emails, follow the opt-out instructions in the email received. To revoke your consent to receive communications electronically, please contact your GS PFM team.