If you’re about to jet off on an overseas holiday, travel insurance is one thing you can’t afford to leave behind.

While it can seem like a costly expense for cover you likely won’t need, the price of not having it can be much higher if something goes wrong. In fact, some countries won’t allow you to enter without an adequate level of insurance.

Here are three reason to put insurance at the top of your ‘must-do’ list before you leave.

1. It can cover your medical costs if you get sick or injured

No-one wants to get sick or hurt themselves while travelling, but both occurrences are fairly common. With the right travel insurance, your medical expenses will be covered overseas.

A few things to check include:

• How much a policy covers for medical emergencies;
• Whether the policy covers your pre-existing conditions (if you don’t tell the insurer about these before going, your claim could be denied later);
• Whether you’ll be covered for the activities you’re doing, if you’re going to be doing any adventure sports or skiing.

2. It can help to recoup some costs if the trip is cancelled

Many of us end up postponing a trip at some point in our lives or having the trip cancelled due to reasons outside our control. If this happens, travel insurance can help to cover some of the costs.

What to check:

• Not every policy covers cancellation costs, so you have to choose the right coverage if you want this taken care of.

3. It can replace your luggage if it’s lost, stolen or damaged

If you’re waiting at the conveyer belt and your bag never arrives, you may be able to get your things replaced through travel insurance. The policy will spell out the limit the insurer will pay for your lost, stolen or damaged equipment.

What to check:

• Like cancellation cover, luggage replacement doesn’t come with every policy. If you’re looking for this feature, you have to make sure it’s included in the policy you buy.

Remember to read the PDS before you buy to make sure you know about all the terms and conditions. Finally, happy travels!

Like every article on this website, this is not personal financial advice.