Understanding Travel Insurance For Beginners

Indeed, travel insurance is essential because there can be an unforeseen accident on the road. While we are all hopeful that the trip will be safe and everything will go smoothly, sometimes, bad things can happen.

Travel insurance can protect your lost belongings, gears, and baggage. It can pay you money because of your trip cancellations and emergency medical situations.

As such, read this article to know more about travel insurance. It is a small price to pay to be protected and have some peace of mind for the whole trip.

Understanding Travel Insurance 

Travel insurance is an arrangement or contract with the insurer to guarantee compensation for a specified loss, accident, illness, damage, interruption, and other problems during your travels. This can provide you coverage for any unexpected situations whether you are traveling domestically or overseas.

Similar to regular insurance, travel insurance Singapore works by buying the policy or by paying a fee. The policy is the contract that states the type of refunds or reimbursements that your insurance can pay for.

For example, you have business travel to Japan. Two days before your flight, you experienced severe headaches and decided to consult with your doctor. He concludes that you have high blood pressure and must rest for a while.

Then, he advises you to cancel your trip. Will you be reimbursed for the travel expenses you already paid? Such as your plane ticket and hotel accommodation?

If you have travel insurance Singapore, then you can get the reimbursements. Depending on the policy you have bought, the insurance company will reimburse the expenses incurred for the trip.

Coverage of Travel Insurance 

You can get reimbursement on your travel insurance policy at MoneyIQ with the following expenses:

  • Lost item or baggage
  • Canceled trips
  • Emergency Evacuation
  • Legal costs
  • Protection of property and others

Types of Travel Insurance 

Indeed, there are various kinds of travel insurance policies available in the market today. However, there are two main types, which are the Travel Medical Plan and the Vacation Plan.

Vacation Plan Insurance 

In terms of coverage, the vacation plan insurance at Hong Leong Assurance is considered the widest. The majority of the sub-types fall under this category. Some of the types of vacation plan insurance include trip cancellation, package plan, trip insurance, and the generic ‘travel insurance.’

In general, the most common items covered under the vacation plan insurance include the following:

  • Canceled or interrupted trips
  • Gear protection
  • Medical emergencies
  • Emergency evacuation
  • 24/7 assistance
  • Delayed or lost item or baggage

You will notice that the medical emergencies are still included under the Vacation Plan Insurance. This is because there are policies that include this one in their coverage. However, if you want to have medical coverage as you travel and you think you will not need the rest, then you should have the travel medical plan instead.

Travel Medical Plan 

When traveling, your health insurance provider will give zero or partial coverage to you. However, with a travel medical plan, it will ensure that you have adequate medical assistance in cases there is a need that will arise when you are away from your home country. This includes emergency evacuations and medical expenses.

Cost of a Travel Insurance 

The cost of travel insurance varies. In general, the price range is from $10 to $100 for a single trip that can last four days to a week.

Indeed, various factors can affect how much your quote will be. These are the type of activities that you will do during your travel, age, destination country, level of coverage, medical conditions, length of travel, and others.

Reasons for Buying a Travel Insurance 

The reasons for buying travel insurance vary from one person to another. In general, buying one can provide you with peace of mind. It is considered as a protection for your pockets.

Similar to buying life insurance and car insurance: this will help you prevent any headaches due to unforeseen expenses during your travels.

For example, if a monkey bites you during your travels and you do not have any travel insurance, you will be forced to shell out money from your own pockets. This is true in paying for your medical expenses that could affect the budget that you have for the trip. Sometimes, this will force you to cancel some of the items on your itinerary to make up for the expenses. Perhaps, someone at home fell very sick and you need to get back immediately. With the right travel insurance, you can get reimbursement for the fees you paid. You can have a chance to get home without worrying about wasting the fees that you paid for.

This also applies whenever your destination country is reported to experience natural calamities or weather disturbance and you are forced to leave. Indeed, travel insurance will keep you compensated for the expenses that you have already paid.