Let’s take a look at what can go
wrong when you’re traveling abroad with money in hand.There are some traps given below that proves us the importance of travel insurance.
TRAPS
Cash: While this is the easiest way to
carry money, it’s also the riskiest. You do need to carry some cash to cover
immediate and small expenses like transport, food and drinks. However, relying
only on cash throughout your trip puts you at the mercy of pickpockets and
money exchange services, which often charge an extremely high commission and
give you a lower rate than the market standard. A cash-only plan also requires
you to be on your guard against overspending. After all, what happens if you
run out of money?
ATM and Credit cards: An international credit or ATM card
is the least risky form of conducting your transactions abroad. Carrying a card
ensures that you need not carry much cash, and whenever you run out of money,
you can always withdraw more from an ATM or simply charge your expenses to your
account. Sounds fuss-free? It is, as long as you ignore the massive currency
conversion and service charges you keep racking up at your bank.
Traveller’s cheques: This tried-and-true method of
carrying money offers a great advantage over theft and misplacement. As long as
you remember the cheque numbers, or have photocopies, you can get them encashed
even if the cheques themselves have been lost of stolen. So what’s the problem,
you ask? The flat fee for encashment – which can make small transactions
burdensome, and your overall transaction bill very expensive.
