Choosing the Right Travel Insurance Part II
From Financial Literacy Wiki
Singaporeans love to travel as seen by the number of travels fairs held. And all of us love to travel with a calm state of mind and getting sound travel insurance does that.
It is of vital importance that we get travel insurance because while travelling in unfamiliar territory, there can be a host of unforeseen circumstance that turn our travel dreams into nightmares. As overseas medical expenses can be very hefty and getting the right travel cover can eliminate a bulk of it.
It is advisable that travelers shop around for the right insurance cover that meets their needs. If you are travelling without baggage, a cover on loss of baggage would be useless.
So how do you go about selecting the right travel insurance?
Here are a few pointers
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Purchase your travel insurance early
Preferably you should purchase your travel insurance once you have booked your trip. This is because for some insurance, there are travel cancellation coverage which can be beneficial if you start your insurance cover early.
Buy What you Need
It is of great importance to ensure that the travel insurance provide adequate coverage with the option of better benefits offered at a higher premium.
Some travel insurance offer coverage on hazardous activities like diving and skiing which you should look into if you are intending to participate. If you are unsure whether you would take part in these hazardous activities, it is advisable to purchase it so you can have the freedom and peace of mind when you do feel like taking part.
Single or Annual
Depending on your travel frequency, you might want to purchase an Annual Plan. If you make short-haul traveling often, it is advisable to take up an Annual Plan as well.
When deciding on Single Trip or Annual Coverage, the destination of travel is also important. As travel insurance coverage varies with destination, it is advisable to get coverage on all you trips.
Automatic Extension of Coverage
Sometimes you may be stuck in a particular destination due to circumstances beyond your control for instance, when the Thai International Airport was taken over in 2008. As such it would be great if the travel insurance you purchase have an automatic extension. Look out for such option and its terms and conditions if you are traveling to destinations that are well-known for such events that make travelers stuck longer than intended.
Definition of child and other definitions
Different insurers have different definition of the word ‘child’. If you are purchasing a family policy, do check out what is the definition of ‘child’ and also other relevant definition that can be ambiguous.
For instance, how is travel delays defined? How many hours is needed to consider “delayed in flight”? And how are the hours of delay calculated?
Premium Discounts
Usually insurers will offer group discounts, so if you are traveling in a group, check out what discounts are available. Exercise the power of bulk buying!
Keep all receipts and paperwork
Do have a folder handy while traveling. For this folder, you can put in your receipts and other documents like visa, hotel baggage claim stubs and boarding passes.
If you should need to file your claims from insurers, such act would make your paperwork easier.
Familiarise yourself with Claims Process
Understand the timelines for filing claims. Some insurers would need you to file your claims from three to seven days after you have reached home. By understanding the timelines, you can avoid unnecessary hassle and some misunderstanding, smoothening your claim processes.
Settlement time will varies with the nature of claim, completeness of documents and insurers but most claims are settled within two weeks.
Emergency Assistance Phone Number
Ensure that you have recorded down the Emergency Phone Number and Insurance Policy no. in a notebook or mobile phone.
Provide another copy of the travel insurance certificate to your family members if they are not travelling with you. If there is a need, you can then call them up to seek for assistance.
