Making an average of 4.4 overseas trips a year and spending an average of 7.4 nights per trip, Singaporeans are a well-travelled bunch.
Lurking in the shadow of every enjoyable holiday are the potential perils of overseas travel, such as flight delays, lost baggage, theft, illness, and even personal liability.
Travel insurance gives you peace of mind and protects you from the financial loss to remedy unforeseen situations on your trip, including booking new plane tickets, getting a hotel room at the last minute, or soothing the loss of your luggage.
While travel insurance is one of the simplest (and cheapest) forms of insurance, there is a diverse array of choices in the market and important considerations you need to make. Choosing the cheapest policy isn’t necessarily better, nor is simply buying the most expensive travel insurance plan.
Here’s what you need to know to choose the best travel insurance policy for you.
When Is The Best Time To Buy Travel Insurance?
To maximise your coverage, you should buy your travel insurance as soon as you book your air tickets and accommodation.
This is because once you purchase the policy, you’ll be able to make claims if your trip is cancelled or postponed due to recognised reasons covered by your policy, such as the adverse weather conditions at your travel destination or your travel agency shutting down and leaving you high and dry.
Should You Get A Single Trip Or Annual Travel Insurance?
You can purchase travel insurance for a single trip or buy an annual policy that is valid for trips over a one-year period that originate and conclude in Singapore. Annual travel policies also typically have a cap on the length of each trip as well as constraints on the covered countries/regions.
If you’re a frequent traveller making similar trips, annual travel cover could make sense for financial and convenience reasons.
However, if you have some trips to countries that are close by for leisure and other trips that are further away and more adventurous, an annual policy might not make as much financial sense. This is because you’ll either be paying a premium for more comprehensive coverage on trips that don’t really require it, or be under-insured on your epic vacations.
Do You Buy Individual Or Family Travel Insurance Plan?
As its name suggests, an individual travel policy covers a single person, while a family plan covers the policyholder and their immediate family members.
Family plans are generally cheaper than buying policies individually, though insurers will usually place a cap on the maximum number of people covered under a family plan. Additionally, if you are the only one travelling frequently, and your spouse and children do not, then it could also make more sense to buy annual travel coverage only for yourself and individual coverage for your family.
Read Also: Is Your Travel Visa Basically A Tourist Tax?
Comparing Travel Insurance: Benefits And Exclusions
Coverage amount and benefits differ among insurers and individual products. Most comprehensive travel insurance policies have benefits in the areas of personal accident, medical costs, travel delay, trip cancellation, and loss of personal artefacts.
You should think about the appropriate amount of coverage you need, rather than paying more for a higher amount thinking it is ‘better’. For instance, on a trip to Malaysia, you’re probably not going to bring a huge amount of valuables, and the cost of making alternative transportation and lodging arrangements will not be very expensive. Getting a more ‘high-end’ policy that covers you for tens of thousands of dollars more isn’t necessary and you may just be wasting money.
For example, Great Eastern’s TravelSmart Premier plan has three coverage levels – Basic, Classic and Elite – which each higher tier providing more comprehensive coverage. On its Bagge Loss coverage, the Basic plan provides a claim limit of $5,000 (maximum limit for Family Cover), while the Elite plan provides a claim limit of $10,000 (maximum limit for Family Cover). If you are travelling to a nearby destination or for a short getaway, you may not be bringing $10,000 worth of valuables in your baggage in the first place.
As important as the benefits your insurance policy provide, the exclusions that will not be covered are perhaps even more critical. The last thing you want is to think you’re covered, only to realise you’re not.
Exclusions mean that the insurer will not cover claims caused by or arising from these events. These include carelessness/self-inflicted loss, travelling to countries in an excluded list, engaging in hazardous activities, or pre-existing conditions. Ensure you’re familiar with the exclusions, and keep that in mind during your holiday. If a ride in unlicensed taxi services are not covered by your policy, then you probably shouldn’t ride in it, or risk not being protected.
Taking Great Eastern’s TravelSmart Premier as an example again, its Classic and Elite plans may cover adventurous activities such as Bungee jumping; white water rafting; Hang gliding; Helicopter or airplane rides for sightseeing; Hot air balloon rides for sightseeing; Jet skiing; Paragliding; Parasailing; Skiing or snowboarding; Sky diving; Underwater activities and others. However, its Basic plan may not cover such activities.
How To Buy Travel Insurance?
These days, you can buy travel insurance online directly from the insurance company, or through financial advisers, your travel agency, or even comparison websites.
After buying travel insurance for your trip, be sure to note the following information and have them on hand in case of an emergency:
– Your policy reference number
– Emergency hotline to contact your insurer, especially if your policy provides for emergency evacuation
– Claims procedure, including deadlines and documentation required
Now all that’s left is to enjoy your holiday. Bon voyage!
Read Also: Step-By-Step Guide to Getting And Using A YouTrip Card For Your Next Holiday Or Shopping Online
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