6 Key Factors To Consider When Buying Travel Insurance in 2024

This was originally posted on Planner Bee.

Planning your next adventure? Securing the right travel insurance is a crucial step to ensure peace of mind during your travels.

Travel insurance is a type of insurance product that covers a wide range of unforeseen losses one can incur internationally or domestically. This can range from smaller losses like lost baggage to more serious cases like trip cancellations and emergency medical situations.

With so many options available, it can be challenging to know what to look for. When sifting through all the available options, rank them based on the benefits that are most important to you.

Your final choice should offer adequate financial coverage from the time you leave your home, suitcase in tow, to the moment you’re back on home ground.

Here are the top common factors to consider when buying travel insurance:

1. Destination and duration

Insurers divide the world into different regions and zones, commonly ASEAN, Asia and Worldwide for everything else. The cost of your insurance will vary according to where you are travelling to.

Generally, insurers exclude coverage for countries that have recently experienced natural disasters or political wars. If you purchased the insurance on or after the date specified, you will not be covered.

So before you purchase your insurance, make sure you have selected the correct region as well as watch out for travel advisories.

Another important consideration is the duration and frequency of your trips. Most annual travel plans limit trips to 90 days, while single-trip plans are limited to 182 days.

If you plan to take more than 2 trips, totalling more than 25 days in a year, an annual travel plan may be more cost-effective for you as it covers unlimited trips over 12 months.

2. Coverage for specific activities

Adventurers take note! Are you planning to challenge yourself with daring activities like bungee jumping, diving, and skiing?

Before engaging in such thrilling experiences, it’s crucial to ensure your travel insurance covers these high-risk activities.

Most policies often have limitations or exclusions for certain activities, particularly those considered high-risk. Common stipulations for activities include trekking or diving up to a specified height or depth and skiing or rafting within permitted ranges under the supervision of a trained professional.

Since competitive sports are not covered, these activities should only be done for leisure purposes. Remember to check with your insurer if your policy covers extreme sports!

Read more: Best travel insurance plans

3. Loss of travel documents, valuables and baggage

Travelling abroad brings its own set of challenges, and losing your belongings can significantly add to the stress.

Fortunately, most insurers provide compensation for lost, stolen or damaged baggage and belongings such as travel documents, cash and laptops.

In order to file a claim, you must report the loss to the police or relevant authorities within 24 hours of the incident and provide the necessary documentation to your insurer.

Do take note of the limitations associated with these claims. Each item typically has a maximum claim limit, and there are specific exclusions to consider. Items that cannot be claimed under standard policies include confiscated items, motor vehicles and their accessories, perishable goods, and business-related items.

Understanding these details ensures you are better prepared to protect your possessions while travelling and know exactly what steps to take in the event of a loss, theft, or damage

Pro tip: Request for quotes via this form and our team will help you compare and buy the plan that suits your needs most.

4. Claim limits for medical expenses abroad

Falling ill abroad, particularly in countries like America or Europe, can be very expensive. That is because the cost of living and healthcare costs is so much higher compared to less developed countries like Thailand or Vietnam.

For example, a doctor’s consultation in the United States can cost anywhere from USD $200 to USD $300. The average cost of an emergency room visit can quickly hit USD $2,168.

Medical costs can be substantial and an unexpected strain on you. Hence, it is crucial to plan ahead to avoid financial burdens.

Most insurance policies cover hospital, surgical, and dental care received overseas. Depending on your plan, emergency medical evacuation may also be included if you become critically ill and need to be transported to a medical facility for treatment. Additionally, if you require hospitalisation, you may be eligible for an overseas hospital allowance.

When selecting an insurance plan, thoroughly review the coverage details. Some policies may have exclusions or limitations, such as pre-existing conditions and competitive extreme sports.

In addition to securing insurance, take preventive measures to safeguard your health while travelling. Research your destination to identify any necessary vaccinations or medications, and take precautions to avoid common travel-related illnesses.

Your preparation will ensure that you can enjoy your travels with greater peace of mind, knowing you are protected in case of a medical emergency.

5. Coverage for pre-existing medical conditions

It might be challenging to find insurance that covers pre-existing conditions since the majority of travel insurance plans do not cover them.

Purchasing the wrong travel insurance plan may result in not being covered if you need to seek medical treatment overseas due to your pre-existing conditions.

If you have a pre-existing medical condition that requires long term care and medication, you will need to purchase a travel insurance plan with coverage for pre-existing conditions.

Some conditions that would apply:

• Asthma
• High blood pressure
• Diabetes
• Heart conditions
• Stroke
• Cancer
• Lupus

Fear not, there are some insurers that provide such plans, namely Income, MSIG and Etiqa.

When submitting an application for travel insurance, disclose your medical history accurately. A future claim may be denied if a pre-existing condition was not disclosed before the policy was confirmed. Prepare your medical records or a letter from your doctor for your insurer’s reference as well.

Read the policy wordings carefully as the meaning of “pre-existing conditions” varies throughout insurers so pay special attention to it. Certain policies might only cover conditions that have been stable for a specific amount of time, and others might completely exclude long-term illnesses.

6. Rental vehicle excess

Looking to take a road trip or a scenic drive overseas?

Renting a vehicle can be a fantastic way to explore new destinations at your own pace. However, it’s important to be aware of the potential costs and liabilities associated with rental vehicles, particularly the excess charges that can apply in the event of an accident or damage.

So what is rental vehicle excess?

Rental vehicle excess, also known as a deductible, is the amount you are responsible for paying out-of-pocket if the rental car is damaged or stolen. This excess amount can range from hundreds to thousands of dollars, depending on the rental company and the vehicle type.

The good news is that this excess is already covered in most insurers’ travel insurance policies, so you may not need to purchase additional coverage. However, if your policy tier does not cover that, you might want to consider adding it on for a safer driving journey overseas.

During the rental period, the insured person must have full motor insurance coverage against loss or damage to the vehicle and not participate in any type of speeding or driving while under the influence of drugs or alcohol.

Popular travel insurance plans 2024

Here is an overview of some of the more popular travel insurance plans in Singapore:

Read more: Best Travel Insurance – Updated 2024

Don’t wait too long to seal the deal

Did you know that your policy kicks in 30 days prior to the commencement of your trip, or when your policy is ready, whichever is later?

This flexibility allows you to secure coverage well in advance, ensuring that you are protected against any unforeseen events that may occur even before you depart such as pre-trip cancellation or postponement due to sudden sickness.

It is prudent to lock in your travel insurance once you have finalised your travel plans so you have one less worry as your travel date draws near.

If your travel insurance coverage offers a free look period, you can cancel within the stipulated time for any reason and receive a refund as long as you haven’t begun your trip or filed a claim yet. With this flexibility, policyholders can review their coverage needs without incurring any penalty fees.

However, you will lose your payment if you cancel your travel insurance policy after the free look period has passed. The free look period is usually 14 days.

Bon voyage!

Overall, safeguarding yourself and your finances from unexpected occurrences becomes even more pertinent when you’re overseas, or in areas that may be unfamiliar to you. For a worry-free trip, don’t procrastinate on settling your travel insurance and be sure to familiarise yourself with the coverage and policy wording.