There comes a point during your holiday talk with your friends or family members and the topic of travel insurance pops up. For many, travel insurance may be viewed as an optional purchase or an unnecessary additional expense.
While we’re no fortune-teller able to foresee the future, unpleasant travel encounters no matter how big or small are inevitable. Without travel insurance, I would have to fork out the entire amount to purchase a new phone after dropping mine into the ocean while parasailing. In my case, travel insurance was not an expense, but truly a lifesaver back then.
In this article, we will look into some of the things travel insurance covers, when you should make a purchase, what you should look out for and more.
What does travel insurance cover?
Travel insurance generally covers trip cancellation or disruptions, loss of baggage or personal items, accident coverage and medical emergency or evacuations. We will delve in with a little more detail to see what each feature can offer you when you are out and abound on your holiday.
Trip disruption
Should you need to cancel or cut short your trip, you will be able to make claims if it’s stated upfront on your travel insurance.
Loss of baggage/personal items
Insurance companies may phrase it slightly differently so do refer to your policy for the exact words and description. Loss of baggage during transit, theft of or damage to your personal belongings are the common terms insured. Some providers also cover baggage delay.
Accident coverage
Death or permanent disability caused by an accident that occurred while you’re overseas can be further grouped by age, for example, child younger than 21 years old and adult below or above 70 years old.
Medical emergency/evacuations
Medical expenses incurred while overseas or after returning to Singapore and daily income should you be hospitalized can possibly be claimed.
Again, we would like to highlight that the exact elaborate coverage will depend on which travel insurance company you’re purchasing from since there are similar generic terms but also clauses that vary in many ways. Also, depending on your type of travel, like the level of risks involved, you might want to consider the different plans available.
For example,
offers a variety of coverage features in their plans. Some of the more notable ones include claims for counseling services as a result of psychological trauma during your trip, emergency dental treatment to ease discomfort and if you’re a victim of a hijacking overseas.
Keen to protect yourself with World Nomads’ wide coverage policies for your upcoming trip? Click here for an exclusive Trip101 discount code!
When should I buy travel insurance?
As soon as the trip has been planned and booked, you should purchase travel insurance with your tour agency or online. It is highly recommended for you to buy as early as you can to avoid complications. Taking the latest coronavirus into consideration, many travel insurance companies have put up notices on claims based on when the virus was officially a “known event".
This means that those who have purchased early were covered for their trip cancellations, cut short and disruptions in general due to the outbreak. Only a handful of insurance companies allow travelers to purchase travel insurance after they have already departed for their trip.
To avoid this situation and have a peace of mind, purchase one before your trip starts.
What should I look out for when buying travel insurance?
You should see if these terms are explicitly stated on the insurance coverage and how extensive they are: pre-existing medical conditions, high-risk activities, coverage of intended destinations and date of purchase.
Pre-existing medical conditions
Travelers with pre-existing medical conditions need to be sure that should their medical conditions act up or worsen during a trip, their travel insurance will be able to cover their medical expenses. This may not be written in full for some companies while some are clearly written upfront. If unsure, always contact the customer service to clarify any doubts.
High-risk activities
Heading overseas to do adventurous sports? The higher the risk, the more important it is to see if you’re covered for accidental death or permanent disablement.
Coverage of intended destinations
Coverage may differ for specific destinations at the time of purchase so do a thorough check on the destination before purchasing an insurance policy. Again, ask when in doubt.
Date of purchase
As recommended earlier, you should purchase travel insurance as soon as your trip is booked. Note the date of purchase in the case where “known events” come to play.
Should I opt for a single-trip or annual plan policy?
This dilemma will depend on your traveling patterns and frequency. Single-trip travel insurance is usually more affordable though prices may vary during peak holiday seasons. As for the annual plan policy, you will pay a flat fee for coverage that will last over a long period, that is a year in most cases.
Allianz Travel offers both plans for anyone who’s considering between both options. To help you save, we have a promo code that allows you to enjoy 40% off your Allianz Travel insurance here.
When should I not buy travel insurance?
While purchasing travel insurance gives you peace of mind, for those who are looking to justify their decision of not buying travel insurance can consider these few areas. If you’re heading out for just a short journey, such as familiar road trips that are a few hours away, then maybe travel insurance isn’t needed.
Better still, you don’t have to worry if you’re currently insured under trip coverage from existing credit cards, airlines or your personal insurance provider. Lastly, if a situation is already a “known event” at the destination, then it might not make sense to purchase one.
Buy according to your needs
Each traveler is unique and there are no two persons with exact traveling needs. Be smart in picking your preferred travel insurance since each company differs in terms of coverage.
The more expensive the trip, the better it is to purchase one early since the last thing you want is to see thousands of dollars washed down the drain because of possible trip disruptions due to unforeseen circumstances. Compare against the many online providers out there before narrowing on the one you’re confident in.
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