Why Buying Travel Insurance is Not as Easy as You Think It Is


If you believe that life is short and the world is wide, that every adventure starts with a single step, that travel is the only thing you buy that makes your richer, or my personal favorite, Paris is always a good idea, then you are indeed a wanderlusting soul at heart. You believe that to find yourself, you need to get lost in the world, literally – it is like taking a journey into yourself.

It is very rightly said that the world is a book and if you do not travel, you read only one page. It is true, however, completing the whole book comes with its own responsibility and sensible, money saving options. This responsibility may be utilized to the fullest through travel insurance to help make your memories all over the world. It can protect you from risks of overseas trips and also save you a lot of money.

The one essential item you must pack for every trip is travel insurance. Buying a policy has never been easier and it could save you tens of thousands of dollars if your dream holiday suddenly turns to chaos. But not any travel insurance, there are various options available for travel insurance and you must know what you need and make an informed decision to make to most of it according to your needs.

Travel Insurance Trends

Thanks to the boom in economy leading to a higher amount of disposable income of Singaporeans, more of us are to spend our money on travel. It may also be credited to the increasing number of budget airlines. Travel insurance sales have also grown, by 8 per cent to 10 per cent a year on average, in the last five years.

On average, insurer AIG issues more than 40,000 travel insurance policies per month. This means that a travel insurance single-trip policy for one person, for a one-week trip to an Asian city, could range in cost from about $30 to $50 depending on the coverage.

More of us have begun to buy higher premium travel insurance because of the rise in income, thus, enjoying the benefits of better medical and travel benefits to destinations such as Europe, Japan and Australia. The rise in income is so much so that Singaporeans have started travelling as much as four times in a year. There is an increase in the number of times people travel and also an increase in the number of people who have started travelling.

Usually when one opts for a package holiday then the insurance is included in the package but for free and easy trips, one can always opt for an insurance policy.

Changing Travel Tastes

Since more Singaporeans are choosing exotic places as their travel destinations, there is a greater level of awareness of the risks and hazards of overseas places among the people, as well as the risk of transportation delays, air disasters, political unrest and threats of terrorism, among other worries. Hence, insurers can be flexible while applying policies.

Easy to Buy

Hoping for the best but being prepared for the worst is the best attitude to travel with because of the awareness of so many risks. It also is always to have an insurance policy because of this awareness. It is not hard to get it done anyway because buying this coverage can be as simple as using a mobile app – an option offered by DBS TravellerShield. The policy can also be bought at DBS Bank and POSB branches, ATMs and AXS stations.

You may even buy travel insurance from banks when you pay for the air ticket using a credit card. However, it is always advisable to find out more about the insurance you are buying through your credit card otherwise you might end up with just a personal accident travel insurance plan which pays a sum of money if the insured person dies or suffer disablement due to an accident only.

Be Aware of Your Needs

A few key features to consider while looking out for a travel insurance based on your needs are:

  • Medical expenses including overseas hospital allowance and emergency medical assistance and evacuation
  • Access to a 24-hour assistance hotline
  • Coverage for the loss of money
  • Coverage for the cost of obtaining replacement travel papers if original documents are lost due to theft
  • Rental car excess
  • Trip cancellation

Extreme Sports Coverage

For the adventurers out there, there are insurances that might even include certain types of sports. For example, AXA’s SmartTraveller covers sports such as bungee jumping, skydiving and parachuting. However, there are specific exclusions when it comes to sports, hence, you need to clarify with the insurer what all is included and what is not.

Pre –Departure Benefits 

Travel insurance can be bought in advance, as soon as the trip is confirmed, and can be enjoyed as much as six months prior to the trip. It will reimburse you the non-refundable portion of your package, hotel or airfare paid in advance, should you be unable to start your trip due to serious illness, injury, death of a family member or travel companion, or closure of the travel agency.

The Claims Process

The most common claims are for overseas medical expenses, trip cancellation and travel inconveniences such as travel delay and lost or damaged baggage. To make these claims, one needs to go through a process:

First, take note of the exact time, place and circumstances of the loss. Then, file a police report immediately after discovering the loss and keep a copy of the report. Once you return home, get a copy of the claim form from your insurer and complete it. Also, attach receipts of the lost items where possible to substantiate the amount claimed, and submit them to your insurer.

Thus, by getting yourself travel insurance you cam plan your trips wiser and better and not be afraid to set foot in the toughest terrains the world has to offer. Your heart can be free to have courage to follow your dreams!

What do you think?