When Can You Skip Buying Travel Insurance? And When Should You Start Buying It?
If you intend going on vacation this December holiday, you probably have in place the primary essentials like booking a cruise or flight, hotel to stay in, and done some shopping for the same. Excellent! But has it crossed your mind that you may need a travel insurance policy?
It’s always crucial to think about your safety, regardless of whether you’re a thrill seeker who engages in extreme sports or just a simple individual who enjoy the phenomenal nature of our lands. Adding a trip protection policy to your vacation budget cannot hurt your budget. In fact, it may come in handy when you least expect it.
Types of trip insurance available for you
There are two types of trip insurance in Singapore:
Comprehensive trip insurance
Literally covers for almost everything in your travel and any direct or indirect costs like dental emergencies, costs associated with accidental death while on the trip, disaster evacuations and many more. In simple terms, this is a premium or combo travel insurance policy.
Basic trip cancellation coverage
This policy reimburses you for any lost goods like travel bags, missing connections, or compensation when you can’t travel due to sickness or other emergencies.
Most insurance companies and experts in Singapore recommend the comprehensive package rather than the primary insurance, as it offers more coverages. You can even buy a policy that allows you to cancel trips without any apparent reason, which may be very reasonable if you’re traveling to a place where you are not sure of the safety. If you have a basic reimbursement policy, you may have to provide valid reasons and meet various stringent terms in order to qualify for the cancellation.
However, you may need to part with an average of S$164 to get a comprehensive policy. That is to say that for an economic-conscious individual, that money can go a long way towards funding a fancy dinner, booking a luxurious hotel room and a little splurging. Therefore, understanding when to buy and when to skip trip insurance could be a life changer.
When to skip or when you don’t need it
It’s quite proper that you consider your vacation as an investment. You don’t want to end up frustrated after getting to your destination only to find that you cannot take up certain activities due to a shortage of funds that you stashed in your trip insurance. On the other hand, you don’t want to come back and begin going deep into your pockets to pay for medical expenses after contracting a contagious fever or illness in the vacation.
Skip if your credit card provides it
Before purchasing trip insurance, check all your bank cards to verify whether there is any that offer it as a perk. Some cards provide compensation for trip cancellation and baggage protection. During the holidays in Singapore, it is not uncommon for credit cards to offer such perks for their travelling customers. You may find that you don’t need to purchase any insurance courtesy of some credit cards.
Skip if heading to the U.S
Traveling to America for the holidays? Well, let’s just say you’re in good hands and that you don’t have to purchase extra insurance. Travelling around the U.S can surprisingly turn to be less expensive depending on your budget.
Skip for flexibility
Like we mentioned earlier, trip insurance is not a must. It is not a cancellation policy either. You may find yourself losing money for policies that may not be useful to you. For instance, if you are traveling to a destination that you have visited before, the chances are that the place is safe and therefore zero chances of canceling. Such a trip may not need insurance, instead, use that money to enjoy your stay while there.
When you need to buy insurance
The general function of travel insurance is to protect you in the event of an accident while enjoying yourself. If your trip destination is nowhere near Singapore, and it’s your first time there, you probably shouldn’t think twice about purchasing insurance for medical reasons and emergencies.
Buy when traveling to other countries
It’s apparent that most international trips are more expensive since the tourers stay longer. Singaporeans are known to travel outside the country more often during the holidays, and most take an average of 12 days during the vacation. Such trips require proper financial planning including insurance in case of an emergency in a foreign country.
A comprehensive policy will cover most if not all of the situations especially if it’s the whole family traveling.
Purchase it for medical reasons
Climbing the high snowy mountains in Africa or sunbathing at the sandy beaches of Phuket, Thailand maybe some of the pleasures of vacations that give you a once-in-a-life-time kind of experience. But look at it this way, what if something terrible happens to you when you’re out there in that far away land, where medical help isn’t that near? What if the medical costs in that place are way too high?
These two questions narrow down to one conclusion—a comprehensive travel insurance, may save you substantial lump sums of money when things go wrong out there. You don’t want to put the lives of your family particularly your children at risk in a foreign place.
Buy it for cruises
A comprehensive insurance is a significant requirement as far as travelling in a cruise ship is concerned. That is because of the significant upfront charges, high risk of emergencies and international travels. Therefore, it’s certainly not possible to walk on a cruise without proper travel insurance. Cruise airlines take insurance seriously, and that’s why they have their own policies.
There isn’t much of a difference between the insurance options offered by insurance companies and insurance options provided by the cruise ships only that the cruises ship insurance may provide more coverage options like hurricane attacks, although it’s always not a wise decision to travel during hurricane season, but if you have to, most cruises have you covered.
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