When it pertains to travel insurance, everybody stumbles as policies are replete with clauses and legalese. That is especially true while travelling during or after a war or pandemic. As a result, there are currently more questions than answers about what kind of insurance to buy.
One can purchase student travel insurance or a policy providing coverage for a leisure or business trip. Although it might be beneficial, travel insurance is also fraught with errors that we can avoid. Here is what you need to consider to avoid unnecessary hassle and choose the right one.
Five indicators you should look for in a comprehensive travel insurance plan are listed below.
- Inclusions & Exclusions
We make the common mistake of inferring that our insurance provider will not reject our claim because “protection” is provided in large print. But the fine print often works against that. So, ensure you know what is and, most importantly, what is not covered by the policy you are considering. Compare it with other plans to find one that fits your particular circumstance.
- COVID-Coverage Plan
Many insurance policies do not often cover a coronavirus outbreak. Look for terms and conditions that do not exclude COVID-19, and search for an all-inclusive policy. For instance, a travel insurance Singapore plan covers medical expenses, flight delays and cancellations caused by COVID-19.
Not all of the consequences of the virus are automatically covered by a policy just because it covers COVID-19. The diagnosis of COVID-19 may be substituted, but not therapy; you must look for this in an insurance plan you wish to purchase. Alternatively, a policy might include COVID-19 in certain jurisdictions but exclude it in others. The coronavirus and any pre-existing conditions that could worsen due to COVID-19 must be covered.
- “Cancel for Any Reason” Policy
Your travel insurance plan must let you opt for cancellation for any reason and provide adequate coverage for such instances. Travellers may cancel trips due to unavoidable circumstances like a war or the outbreak of a pandemic like COVID-19. There is too much unpredictability involved in travelling during such times. A “cancel for any reason” travel insurance policy often costs 10% to 12% of your trip’s cost, as opposed to the 5% to 10% for a conventional travel insurance coverage. It is a mistake to buy this coverage without being told of all the limitations.
For example, you have 7 and 21 days following the first trip deposit to purchase “cancel for any reason” coverage. You must also cancel the trip at least 48 hours before departure to be eligible for reimbursement under the “cancel for any reason” policy. Travellers also feel they will get a complete refund. However, the “cancel for any reason” coverage only reimburses you for 50% to 75% of your additional costs, depending on your chosen plan. Many consumers abruptly cancel a trip because they assume they will get a full refund, only to be shocked to hear that their insurance either pays for it partially or doesn’t compensate for it at all.
- Purchasing travel insurance at the last moment
Occasionally, when someone wishes to opt for coverage at the last minute, the person gets in touch with his/her travel agency and purchases a travel insurance plan immediately. When you purchase a travel insurance policy at the last minute, the insurer bets everything will go according to plan. On the flip side, you end up risking everything, similar to a gamble and hope everything will be fine.
- A single-trip travel insurance
The phrase “single trip travel insurance” applies to various trips, whether you’re going away for a two-week leisure trip, an adventurous vacation, or a business tour. You will require travel insurance even if you do not frequently travel. Single-trip travel insurance best serves travellers who take brief business or leisure trips. These people often decide to put off purchasing travel insurance, despite the dangers that could affect their savings.
The Last Word
The most important advice for every traveller is to read the itinerary and plan for any unforeseen circumstances accordingly. It’s ingrained in us to think that if something goes wrong, our insurance plan will cover every event. But this is far from being prepared for any eventuality. Every insurance policy includes a range of exclusions that specify what is not covered. It is wise to read the terms and conditions, particularly those pertaining to the inclusions and exclusions of the travel insurance plan you intend to buy, before investing in it.
Never make any assumptions, and carefully review your insurance plan. If you’re considering getting “cancel for any reason” coverage, be sure the insurer is reputable. However, whatever choice you make, give travel insurance a thought. Look for these five pointers so you can travel with adequate coverage and have a memorable trip.
