You are a long way from home and your passport has been stolen. You break your leg a week before your dream holiday and have to cancel. You fall off a motorbike in Phuket and need to spend three days in a hospital.
So what should you do?
Presumably you have travel insurance. If you can afford to travel, you can afford travel insurance, right?
It is not expensive. Not only are there more travel insurance brands than ever before, they cover more than ever and spell it all out on their websites.
“The important thing to understand is that travel insurance is a contract between two parties: we undertake to look after you if something goes wrong, and in return you agree to look after yourself and your belongings,’’ says Maureen Mullins of Cover-More.  
Phil Sylvester from Travel Insurance Direct says it’s all about the “big three”
Medical expenses
Cancellation and delay costs
Losing your belongings.
According to a recent study by the Department of Foreign Affairs and Trade/Smartraveller, 91 per cent of Australians who went overseas last year had travel insurance. Which is great news.
So how do you pick the best travel policy?
*  Pick the type of policy you need: single, family, cruise, ski, seniors (if you are over 60)
*  Annual multi-trip travel insurance policies are better value if you go overseas more than twice a year
* Make sure you get the right coverage by considering where you are going, what you will be doing, how valuable are your belongings and whether you need extra cover
*  Do you have to declare pre-existing medical conditions – if in doubt, just make a quick phone call or check it out online
Most travel insurance will not cover if you travel against medical advice; if alcohol is a contributing factor or if you ignore a “Do Not Travel” alert issued by the Australian government. For instance, if you bought travel insurance for a trip to Bali after Mount Agung started erupting late last year, you were not covered for flights delayed by volcanic ash.
You are never too old to have travel insurance and you can get it at any age.
The only catch is that once you hit 60, your premiums start to increase and some pre-existing conditions may no longer be covered.
If you are travelling with children or grandchildren and they are under 18, they are usually covered by your policy.
Safe travels!