Local Currency

It is a good idea  if you take a small amount of local currency with you whenever you travel.  Enough to last you for your first few hours. You will probably need to arrange travel from the airport to your hotel for example. A local currency is the easiest way for you to pay for these initial expenses. The exchange rates charged at airports are notoriously expensive. You better buy some currency before you leave and you will get a much better deal.

I believe the drawback to carrying currency is that if it gets lost or stolen, it can’t be replaced. For this reason, it’s best to use another form of money for most of your funds.

Travellers Cheques

These are the traditional way of carrying money abroad. When you buy the cheques, which can be in Sterling, Euros or US Dollars, you have to sign the stub of each cheque in the presence of the teller. Once abroad, you can convert the cheques into local currency. You can do so by signing the other half of the cheque at a currency exchange. Then the teller will compare the two signatures and also inspect your passport.

This system is more secure than cash as each cheque is uniquely numbered. So if a cheque goes missing it can be quickly cancelled and replaced by the cheque issuer. There is a drawback in that you have to cash the cheques at a currency exchange, and you might not find one offering a good exchange rate.

Prepaid Cards

These are used in much the same way as credit or debit cards. The big difference is that you have to “load” the card with funds before you can spend with it. They are a secure way of carrying money, as the card is replaceable if lost. And as the card can only be used in conjunction with a PIN number then even if stolen it’s difficult for a thief to make use of it. There will, however, still be exchange commission’s payable when you use the card. And also usually a flat fee for cash withdrawals.

Debit and Credit Cards

Debit and credit cards are accepted virtually all over the world. They may seem a good way of paying your way while abroad. They can be used for shopping, to pay restaurant bills and even to withdraw cash. Before choosing this as your money option though, check your card’s small print to see what interest rate is charged on overseas use. It will probably be higher than the standard rate of your card, and you will probably have to pay exchange charges too.

There are now several international cash machine networks in operation. For example the Cirrus network, and it’s likely that your cash card can be used internationally, especially in Europe and the USA. This is a good way of financing your holiday spending, as you can draw out what you need while keeping the rest of your money safe in your normal bank account. The downside is that you may have to pay a fee for each withdrawal. The exchange rate you’re charged may not be the best available.

The main thing you need to bear in mind with travel money is that while each of the above options is useful, not all are suitable for use everywhere in the world. The best advice: don’t rely on a single kind of travel money. Take a sensible mixture of cash, local currency, and debit/credit cards, to make sure you can always get local currency when you need it. Enjoy your holiday!

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Health insurance in the UK often refers to Private Medical Insurance, which offers paid-for healthcare treatment, as opposed to the NHS, which is free at the point of use. What’s more, you can access breakthrough treatments, including new cancer drugs, as soon as they’re licensed and proven to work (subject to medical history and cover options chosen. Out-patient drugs are not covered).

The health insurance has been designed to help people when they face major health issues like cancer, heart disease or stroke – as well as other medical conditions that can stop them getting on with their lives, such as joint pain and other musculoskeletal issues (subject to the cover chosen and medical history).

Pros:

• Speedy access to treatments – you can see a doctor more quickly instead of the long wait through NHS.
• Better privacy – you can often get a private room on a ward.
• Additional treatments – while most treatments and drugs are available on the NHS, if you have a particular need you may have to pay for private healthcare.
• Extras – firstly, some insurers offer a travel and/or income protection insurance free of charge as an addition to the policy. Secondly, you can get access to various health and wellness discounts and promotions, gym membership at low cost etc.

Cons:

• The insurance can be quite expensive and most likely the cost will increase as you get older.
• The pre-existing conditions and some chronic ones are not covered.

Is health insurance taxable?

Yes, if your employer pays for it. It is classified as benefit in kind and tax is paid on the taxable value of the benefit. HMRC defines this as the cash equivalent value. This is usually the amount it costs your employer to provide you with the benefit. However, if you personally cover the cost of the private health insurance, then it is a tax-free benefit to you.

What is income protection?

Income Protection is designed to pay a monthly benefit if you are unable to work due to illness or injury, which can be used to keep up to date with your rent / mortgage and other monthly costs.

However, given the very low level of state incapacity benefit, the first port of call is usually Income Protection so at least all your essential bills are paid for each month. After all, we’re fortunate in the UK to have the NHS which provides healthcare free at the point of use and so there’s generally less need for Private Medical Insurance than for Income Protection.

Pros:

• It will cover you if you are too injured or ill to work.
• If you are made unemployed without prior warning.

Cons:

• There is a deferred period – also known as an excess period or waiting period – is a length of time you need to wait while out of work before you are able to claim. These periods can range from the first day of absence to 60 days or more.
• In some cases, the insurance may cover only very small amount of your costs. Please make sure you read carefully the Terms & Conditions of the policy.

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