Evaluate which travel insurance would be most suitable for the Fosters? Mr and Mrs Foster have recently

Evaluate which travel insurance would be most suitable for the Fosters?

 

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Mr and Mrs Foster have recently booked their annual two-week holiday in Spain. The total cost of their holiday is £5000. Mr Foster prefers to use his credit card on holiday, keeping £200 in foreign currency for emergency use. This is divided equally between himself and his wife. Loss of the credit card is covered by the credit-card company, Mrs Foster is recovering from recent knee surgery following an injury playing football. They are now looking to purchase a suitable travel insurance policy. They have used a price-comparison site to obtain information on the insurance cover provided, including the policy excesses. These excesses are the amount of any insured loss that would have to be met using the Fosters' personal finances. This table gives information on travel insurance policies being considered by the Fosters. Provider ProAchieve Insurers Shales Insurance Services Laminster Insurance Ltd Expeditions Insurance Ltd. Summary of travel insurance terms and conditions Policy excesses Features Cancellation: up to £4000 Holiday interruption: £1500 Baggage delay: £15 per day Travel delay: £5 per day Hospital daily benefit: £45 Personal money: £1000 Multi-trip insurance Cancellation: £5000 Holiday interruption: £1000 Baggage delay: £20 per day Travel delay; £30 per day Hospital daily benefit: £50 Personal money: £2000 Worldwide cover Cancellation: £3000 Holiday interruption: £25001 Baggage delay: £10 per day Travel delay: £10 per day Hospital daily benefit: £100 Personal money: £400 Cancellation; ES 250 Holiday interruption: £2000 Baggage delay: £8 per day Travel delay: E20 per day Hospital daily benefit: £50 Personal money: £500 £200 £100 £40 Nil Nil £200 £400 ESO £20 Nil Nil £100 £50 £100 £20 Nil Nil £100 £150 £200 £16 Nil Nil £50 Basic cost £300 £425 £325 £375 Revision Guide Page 53 Hint Read the evaluate question on the next page. You need to evaluate Information about the fosters and information about different travel i insurance policies, and come to a judgement about which is suitable Hint Insurance relates to the i risks of certain events i occurring. Evaluate the risks faced by the Fosters: in relation to their holiday arrangements. Circle personal circumstances. Underline financial circumstances. Decide how each one may influence their choice. Hint Evaluate the relevance of each policy to the Fosters. Note as unsuitable any insurance cover not relevant. Evaluate those remaining to determine which provides best value for money for suitable cover for their needs. Watch out! The lowest premium (the cost of insurance) may not always provide the best value for money. Mr and Mrs Foster have recently booked their annual two-week holiday in Spain. The total cost of their holiday is £5000. Mr Foster prefers to use his credit card on holiday, keeping £200 in foreign currency for emergency use. This is divided equally between himself and his wife. Loss of the credit card is covered by the credit-card company, Mrs Foster is recovering from recent knee surgery following an injury playing football. They are now looking to purchase a suitable travel insurance policy. They have used a price-comparison site to obtain information on the insurance cover provided, including the policy excesses. These excesses are the amount of any insured loss that would have to be met using the Fosters' personal finances. This table gives information on travel insurance policies being considered by the Fosters. Provider ProAchieve Insurers Shales Insurance Services Laminster Insurance Ltd Expeditions Insurance Ltd. Summary of travel insurance terms and conditions Policy excesses Features Cancellation: up to £4000 Holiday interruption: £1500 Baggage delay: £15 per day Travel delay: £5 per day Hospital daily benefit: £45 Personal money: £1000 Multi-trip insurance Cancellation: £5000 Holiday interruption: £1000 Baggage delay: £20 per day Travel delay; £30 per day Hospital daily benefit: £50 Personal money: £2000 Worldwide cover Cancellation: £3000 Holiday interruption: £25001 Baggage delay: £10 per day Travel delay: £10 per day Hospital daily benefit: £100 Personal money: £400 Cancellation; ES 250 Holiday interruption: £2000 Baggage delay: £8 per day Travel delay: E20 per day Hospital daily benefit: £50 Personal money: £500 £200 £100 £40 Nil Nil £200 £400 ESO £20 Nil Nil £100 £50 £100 £20 Nil Nil £100 £150 £200 £16 Nil Nil £50 Basic cost £300 £425 £325 £375 Revision Guide Page 53 Hint Read the evaluate question on the next page. You need to evaluate Information about the fosters and information about different travel i insurance policies, and come to a judgement about which is suitable Hint Insurance relates to the i risks of certain events i occurring. Evaluate the risks faced by the Fosters: in relation to their holiday arrangements. Circle personal circumstances. Underline financial circumstances. Decide how each one may influence their choice. Hint Evaluate the relevance of each policy to the Fosters. Note as unsuitable any insurance cover not relevant. Evaluate those remaining to determine which provides best value for money for suitable cover for their needs. Watch out! The lowest premium (the cost of insurance) may not always provide the best value for money.

Answer rating: 100% (QA)

To evaluate which travel insurance would be most suitable for the Fosters we need to consider the coverages provided by each insurance policy in relat... View the full answer