How travel insurance can save your trip

Posted at 04/05/2014 1:08 PM | Updated as of 04/05/2014 1:08 PM

MANILA, Philippines – Travel insurance is one of the most misunderstood risk management tools and is usually the first thing that gets scratched off the travel budget.

But financial adviser Salve Duplito said there are many reasons why travelers shouldn’t overlook this one essential item when booking their trip.

On ANC's "On The Money," Duplito said having travel insurance can help travelers prepare for emergencies such as lost travel documents, lost baggage, cancelled trips, and pandemic diseases and epidemics overseas.

In the event of death overseas, travel insurance can also cover cost of returning mortal remains and arranging for repatriation.

Duplito said returning remains from the US to the Philippines, for example, may cost $4,000 plus international airfare.

She noted, however, that before buying travel insurance, make sure you know your existing coverage of medical and healthcare insurance.

“Do they cover you overseas? If yes, you should know how much. Does it cover medical evacuation or repatriation?” she said.

Duplito also noted that it is important to know the costs of hospitalization and medical care in the country you are visiting.

“Travel insurance is relatively cheap at a few thousand pesos depending on where you are going, how long, and your age. Don’t cut corners. This is the time when you need to let your money protect you,” she said.