Saga will include treatment abroad for Covid-19 and repatriation to the UK as standard as part of its travel insurance policies for all trips from this month.
The company has added the cover to help customers feel more comfortable travelling once the government advice changes to say that it is safe to do so.
With an older customer base and exposure to struggling cruise sector, Saga has been forced to act in order to rebuild confidence among passengers.
The cover has been added across both standalone travel insurance products and the optional cover offered to all Saga holiday and cruise customers.
The policy update will compensate and care for customers should they fall ill with coronavirus while travelling outside the UK, including those with underlying health conditions.
Kevin McMullan, head of product, Saga health and travel insurance said: “Understandably, the current crisis has put travel plans on hold for many people.
“However, with the UK’s strict lockdown measures beginning to lift, more people may be planning both exciting and much needed trips away over the coming months.
“We recognise that this may be a daunting process, particularly for customers with underlying health concerns.
“We want to give people the confidence and reassurance that if they were to fall ill abroad, we’re there to help and get them back home safely.”
He added: “We’re continuing to review and innovate our products to ensure they work as well as they can for our customers.
“However, we know the impact of coronavirus is far-reaching.
“We’d encourage customers to contact us directly if they’d like to discuss their individual circumstances and how we can best support them through these uncertain times.”