Cecelia Chang“Travel insurance? What a waste of money!”
For many travellers, those words ring hollow after an unexpected illness, injury, lost luggage, or cancelled flight turned a dream vacation into a financial nightmare. While no one anticipates trouble on a holiday, unforeseen circumstances beyond our control can quickly derail a trip.
In light of how much emergencies can cost, travel insurance is a relatively small price to pay for financial peace of mind on your trip.
Understanding what it is, its benefits, and some commonly held misconceptions about it can help you to make an informed decision before you embark on your journey.
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Enjoy up to 65% off TravellerShield Plus – a travel insurance like no other! Get discounts of up to 65% on Single Trip and Multi-annual Trip Plans, with premiums starting as low as S$17.50! Plus, receive a CNY ang bao (Vouchers worth S$10) for every Single Trip plan you buy from 1 to 14 Feb 2025, with no minimum premiums. Offering more than just the basics, it’s the first in Singapore to cover travel delays as early as 30 minutes! Plus, you’ll be protected with up to S$1,000,000 in overseas medical expenses. Travel smarter and safer, with TravellerShield Plus.
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What is travel insurance?
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Travel insurance is a type of insurance that covers financial losses arising from unexpected events which may occur during a trip, such as medical emergencies, trip cancellations, lost luggage, and more. A comprehensive plan acts as a safety net ensuring you can enjoy your trip with peace of mind.
TravellerShield Plus covers overseas medical expenses, loss of travel documents and personal property, journey cancellations or postponement, loss of frequent flyer miles, hotel loyalty points and more. It is also the first in Singapore to offer coverage for travel delays as short as 30 minutes.
Common misconceptions about travel insurance
1. Travel insurance is too expensive
One of the biggest misconceptions is that travel insurance is expensive, or even a waste of money. But when you compare it to the potential costs of medical emergencies, trip cancellations, or lost luggage without coverage, it’s a small price to pay.
Medical costs abroad, especially in emergencies, can skyrocket. Hospital stays, doctor visits, and medications can easily cost tens of thousands of dollars. If your condition requires specialised care, you might need to be flown back to your home country. This medical evacuation is extremely expensive.
Travel insurance premiums can vary significantly based on factors such as age, and the level of coverage, but there are a wide range of options to suit different needs and budgets for most travellers. Just remember to do your research and read the policy wording to know what specific scenarios you will or will not be covered for.
2. You don’t need travel insurance as you’re young and healthy
Even the healthiest travellers can face unexpected situations, such as medical emergencies, accidents, or natural disasters. Depending on which country you’re travelling to, medical costs can be immense, especially if emergency medical evacuation is required. In such cases, travel insurance provides crucial financial protection.
Besides, unforeseen events like flight delays or cancellations can still happen. Therefore, getting travel insurance is essential to cover many emergencies, including non-health-related ones.
3. You only need travel insurance for extreme sports or activities
While specific adventurous activities (such as skydiving, bungee jumping, or scuba diving) do necessitate specialised coverage, generic travel insurance is crucial for all types of journeys. Since accidents, by definition, happen unexpectedly and unintentionally, travel insurance is valuable for any type of trip, not just one that involves extreme activities.
4. You don’t need travel insurance for short trips
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Many travellers believe that travel insurance is only necessary for long-haul international trips to far-off destinations. However, even going on short getaways near Singapore comes with risks such as flight cancellations, medical emergencies, or lost luggage. While travels like such may have lower risks, unexpected events can still occur.
5. Travel insurance is just emergency coverage
Travel insurance isn’t just about covering emergencies, it’s about providing comprehensive protection for the unexpected. For instance, incidents such as flight delays, lost or damaged belongings, and more could disrupt your trip.
Having the right travel insurance ensures that you have comprehensive protection from minor inconveniences to major setbacks, offering peace of mind for every part of your journey.
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Travelling somewhere? Get up to 65% off when you purchase TravellerShield Plus travel insurance for your upcoming holidays! What’s more, receive a CNY ang bao (Vouchers worth S$10) for every Single Trip plan you buy from 1 to 14 Feb 2025, with no minimum premiums! Offering more than just the basics, it’s the first in Singapore to cover travel delays as early as 30 minutes! Plus, you’ll be protected with up to S$1,000,000 in overseas medical expenses. But that’s not all – it protects your Frequent Flyer Miles and Hotel Loyalty Points, ensuring your rewards are safe, no matter what happens. All these incredible benefits and more come with the TravellerShield Plus Single Trip Policy, crafted for adults aged 18 to 69. Travel smarter and safer, with TravellerShield Plus!
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Why it is vital to purchase travel insurance
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Having travel insurance can provide peace of mind and financial security. It covers unforeseen medical emergencies, which can be expensive abroad, including hospital stays, surgeries, and medical evacuations, saving you from significant financial strain. It also protects against trip cancellations due to unforeseen events or emergencies, reimbursing non-refundable expenses such as flights and accommodation.
For example, TravellerShield Plus provides excellent coverage for overseas medical expenses, offering up to S$1,000,000 in protection, depending on which plan you opt for. Additionally, policyholders also enjoy continued medical treatment upon their return to Singapore, with coverage extending up to S$75,000.
Types of travel insurance
With TravellerShield Plus, there are three different plans offered – namely the Classic Plan, Premium Plan, and Platinum Plan.
- Classic Plan: This plan provides basic coverage, making it a budget-friendly option for travellers seeking standard protection. However, it does not cover adventurous activities. The coverage for Journey Postponement and Journey Cancellation is S$750 and S$5,000 respectively. Another benefit includes Travel Delay coverage, which provides compensation for delays exceeding six hours, with a maximum payout of S$1,200.
- Premium Plan: Offering more extensive coverage than the Classic Plan, the Premium Plan includes protection for adventurous activities, making it ideal for thrill-seekers who want added peace of mind. The plan offers up to S$1,500 in coverage for Journey Postponement and up to S$10,000 for Journey Cancellation. It provides a higher level of Travel Delay coverage, offering compensation for delays over six hours, with a maximum payout of S$1,600.
- Platinum Plan: Among the three plans offered, the Platinum Plan provides the most comprehensive protection. It offers the highest coverage limits, including for adventurous activities, ensuring you’re well-prepared for unexpected situations on your journey. This includes coverage of up to S$2,000 for Journey Postponement, up to S$15,000 for Journey Cancellation, and Travel Delay coverage, offering compensation for delays over six hours, with a maximum payout of S$2,000.
Depending on how frequently you travel, you can choose between a Single Trip or an Annual Multi-Trip plan. Single Trip insurance provides coverage for a single, specific trip with a defined start and end date, making it more suitable for casual travellers who take a few trips a year.
On the other hand, annual multi-trip insurance offers comprehensive coverage for multiple trips within a year, proving to be a cost-effective choice and has better value for frequent travellers who embark on several journeys throughout the year.
It’s important to note that both Single Trip and Annual Multi-Trip plans often have different coverage tiers for different regions. For example, coverage for trips to Southeast Asia (Region 1 under the Annual Multi-Trip policy), such as Thailand or Vietnam, might have lower premiums compared to other destinations like South America (within Region 3).
Things to look out for in your plan
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When choosing a travel insurance plan, there are a few things to look out for to ensure that you’re getting the right one for you. Firstly, assess the coverage limits to ensure they adequately meet your travel needs and destination requirements. Compare premiums from different insurers to find the best value, ensuring comprehensive coverage at an affordable price. Carefully review any exclusions, such as pre-existing medical conditions or certain activities.
Additionally, choose a provider with reliable customer service, ideally with a 24/7 emergency hotline, such as TravellerShield Plus. Finally, familiarise yourself with the claim process, including the required documentation, to ensure a smooth and hassle-free experience, in case you need to file a claim.
Some policies, such as TravellerShield Plus, also offer coverage for travel inconveniences during the trip, such as baggage loss. The policy provides coverage for the loss or damage of travel documents, with the Platinum and Premier plans offering up to S$5,000 in coverage, while the Classic Plan provides S$3,000. Coverage for the loss or damage to personal property and baggage is also included, with varying limits across the plans.
When should you purchase your travel insurance?
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Generally, it is recommended that you purchase travel insurance as soon as you book your trip, or before. Securing insurance early ensures you’re covered for any unforeseen pre-departure events, such as trip cancellations or interruptions.
For instance, imagine you’ve booked a non-refundable flight to Paris for the holidays, only to face a serious family medical emergency shortly after. If you purchased travel insurance at the time of booking, you could be eligible for reimbursement of your non-refundable trip costs due to this unexpected situation.
Also read: Money-Saving Tips to Upscale Your Next Trip Into A Luxe Vacation
To ensure comprehensive protection and avoid missing out on coverage for potential cancellations, it’s best to purchase travel insurance as soon as you book your holiday, or even earlier. Having the peace of mind that you’re fully covered allows you to focus on enjoying your trip, further enhancing your holiday experience. Safe and happy travels!
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Travelling somewhere? Get up to 65% off when you purchase TravellerShield Plus travel insurance for your upcoming holidays! What’s more, receive a CNY ang bao (Vouchers worth S$10) for every Single Trip plan you buy from 1 to 14 Feb 2025, with no minimum premiums. Offering more than just the basics, it’s the first in Singapore to cover travel delays as early as 30 minutes! Plus, you’ll be protected with up to S$1,000,000 in overseas medical expenses. But that’s not all – it protects your Frequent Flyer Miles and Hotel Loyalty Points, ensuring your rewards are safe, no matter what happens. All these incredible benefits and more come with the TravellerShield Plus Single Trip Policy, crafted for adults aged 18 to 69. Travel smarter and safer, with TravellerShield Plus!
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