5 Things to Look Out for When Buying Travel Insurance
As a broker, many of my clients ask for my opinion on which travel insurance they should purchase. Here is a list of things to look out for apart from the norm.
Important to note: All travel insurance start and return locations must be from Singapore.
TLDR
Some standard coverage includes overseas medical, accidental death, trip cancellation, and emergency medical evacuation. Here are 5 factors to consider apart from the norm when purchasing your travel insurance.
Although price is a consideration, the cheapest plan might not be the most appropriate plan for you.
1. When should I buy travel insurance? 🕓
As soon as you purchase your flight tickets and/or accommodations. The earlier you get your coverage, the more likely you will be able to claim if your trip gets disrupted due to external factors.
Do take note that certain insurers only allow you to purchase travel insurance should your trip start date be within 90 days. So, for those early planners, do seek other insurers to overcome this issue.
2. Pre-existing Medical Conditions 🤕🤒
In the market, almost all insurers do not cover your pre-existing medical conditions. Insurers vary the T&C’s, however, a simple way to remember is if you are already seeking treatment for that medical condition it will not be covered.
Some exceptions are those insurers that allow you to pay additional premiums to cover your pre-existing medical conditions. One such insurer is an Orange color insurer (this is not a sponsorship post).
3. Single Trip vs Annual Plans 🏖️🗽⛩️🕌
When to pick which? For easy reference, if you travel more than 3 or 4 times in a year, it might be wise to go for the Annual plans. Annual plans also save you the hassle of re-applying for each trip.
Please note that for Annual plans, they allow up to a maximum of 30 days per trip. In simple terms, if you have planned to MIA (missing-in-action) from your job for 31 days, your last day of the trip will not be covered.
Single-trip plans allow up to 90 days of coverage at a time. If you wish to change your travel dates, do write in to the insurer early, so that this can be done. They will charge you an admin fee and an additional premium accordingly for the coverage. (will be better than purchasing a whole new plan)
4. Individual Plan vs Family Plan 👨👩👧👦
Some insurers might allow you to include up to 2 children in the family plan, which brings down the overall premium. Family plans may have limitations in the benefits if your costs are above the total allowable claim limit for the family plan. Please note that your 30-year-old child is not a “child” in the insurer’s eyes. Decide accordingly and read the T&Cs.
5. What to do in the event of a claim? ✅📋
One of the most asked questions that I receive while my clients are overseas. You may follow these steps:
5.1) Once you become aware of a potential claim event, inform your advisor and insurer of it. Most insurers require clients to notify them ASAP or within 30 days.
5.2) Keep all receipts, photos, reports, police statements, etc. which will be submitted to the insurer
5.3) Seek compensation from your travel provider and/or accommodations first
5.4) Submit your documents and write a clear story of the incident.
5.5) Wait patiently for the insurer’s outcome.
For “Known Events”, this will fall under the exclusion list and not be covered by the travel insurance.
My advice is to look under the Ministry of Foreign Affairs, Travel Advisory Notices, and Guides, to receive updates on the location you are traveling to.
https://www.mfa.gov.sg/Where-Are-You-Travelling-To
6. Bonus Tip: For those planning to drive overseas 🚗💨💨
When you are renting a vehicle overseas, the travel insurers expect you to purchase comprehensive insurance from the car rental company (which will be stated in the policy wording).
The travel insurance only covers the rental vehicle excess, up to the allowable limit. Which is supposedly the first amount you need to pay in the event of a claim.
In summary
Do not be enticed to go for the cheapest travel plan to save on cost. Understand your situation well before you search for the plan that is relevant to you.
I hope that what I’ve shared will be useful in guiding you on what to look out for on your next trip. Should you have any questions or feedback feel free to drop me a message! (or follow me on Instagram: @gabbielim)
Disclaimer
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customized to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. Any views, opinions, references, assertions of facts and/or other statements that I may set out on this social media account or otherwise are personal views and not necessarily the views held by Financial Alliance Pte Ltd.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Published By:
Gabriel Lim
Helping you make sense of your finances, without sales pressure.
Gabriel provides clear, unbiased advice to help you take control of your financial future. Guided by honesty, integrity, and transparency, he focuses on solutions that truly fit your life.
A Bachelor of Business Management graduate from Singapore Management University, Gabriel has chosen to dedicate his career to financial planning. He continually hones his skills to help clients take meaningful steps toward their financial goals, with confidence and peace of mind.
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