Tuesday, November 19, 2013

Travel Insurance



The first insurance that I'm going to be talking about is travel insurance because it is something that I am familiar with.

Travel insurance is really straight forward. Do you travel often? Are you clumsy or disorganized? Are you travelling to any exotic locations? Are you doing any non-lame activities there? Well, if the answer to any of these questions was a yes, then you need travel insurance.

Sure, if you're going to Malaysia to eat seafood at JB or to BKK for weekend shopping, then I suppose that the question to get travel insurance or not is a legit review case. In those instances, I would personally not get travel insurance. But then again, I do feel that I'm a pretty seasoned traveller so I can usually get by trips without making any rookie mistakes.

For both my long overseas trips, I took travel insurance. Throughout my 7 months in Europe, I was completely insured for my duration there, but thankfully nothing happened to me. With such a long duration, plus intensive travelling (17 countries, say whutttt), it actually is quite a small wonder that nothing happened to me. Sure, I got pickpocketed once, but I didn't lose anything valuable and I wasn't going to waste a day in a police station trying to recover back $100 instead of exploring Barcelona! When I went back to the US for a month, travel insurance came in handy when we missed our connecting flight in Beijing due to weather conditions. Because of that connection missed, I managed to file a claim and the amount I received was the cost of the insurance for the whole trip, and a bit of extra! (It was a single trip insurance by MSIG, the claim process was very easy)

The main point of the above 2 stories is that:
  1. Yes, I am EXTREMELY well travelled ;)
  2. Even well travelled people can have unexpected things happen to them
One of the saddest stories I heard is about a schoolmate and army friend that I knew. He was in New York and he was hit by a car while cycling. Although he had travel insurance, it wasn't ample enough and the whole ordeal has caused a massive financial strain on his family. The point of insurance is not to profit from accidents, but to make sure that any accidents would be handled without any costs to you.

Anyway, so let's drill down a bit. If you travel often, and sometimes for a bit of an extended period, then it might be very worthwhile to opt for an annual insurance plan instead of just single trip. The benefits here on top of lower costs, is that you also don't have to worry about being covered during trip extensions or forgetting to apply for the insurance. Of course, this only makes sense if you do travel quite a bit. If it's once a year for a week holiday, then a single trip would be enough. Most likely, an annual travel insurance is not cost effective unless you travel for work as well. Depending on the amount of trips per year, destination and duration, the base case breakeven point of being indifferent to annual or single trip travel insurance is about 8 trips a year and it can drop to as low as 2 extended trips.

Secondly, the amount of coverage and the range of coverage should also reflect what kind of traveller you are. If you're the shopping, eating kind, then there really isn't a need to get maximum medical benefits and other coverage under the most expensive tier. The main basic sort of coverage that you'll want and need is related to missing flights, lost baggages or travel documents. However, if you're the adventure seeking sort of traveller, you might want more coverage associated with the more active style of travelling, as well as take note of activity exclusions in the insurance.

I'm quite pleased to announce that I am covered with an annual travel insurance plan, the Comprehensive SmartTraveller under AXA. This insurance policy was taken up for me by my company because we usually have between 2-4 overseas trips, and it is also a form of employee benefit. I helped with the comparisons between Tenet Sompo, AIG and MSIG, and the company eventually decided to go with AXA.

Of course, as with all forms of insurance, the point of having travel insurance is not to make a profit from any mishaps, but instead to ensure that should anything unfortunate happen to me, I will not suffer financially. I am quite confident that this travel insurance will more than sufficiently protect me in that aspect.

I'm pretty glad to be covered. It makes me happy that I have this employee benefit, and it is also an added motivation for me to remind myself that I should also go out and travel and make use of this insurance, because I can travel worry free! 

So, that's all for my post on travel insurance, I wonder which one I will tackle next.

10 comments:

  1. Amazing blog! Is your theme custom made or did you download it from somewhere?
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  3. Thanks for sharing your experience. The good thing about having travel insurance is that it has you covered, just in case you get in trouble on one of your travel destinations. It’s hard to tell when you will be in an emergency. So, it’s better you have something that you can rely on, should that situation happen in the future.

    Clifton Johnson @ Insuring the Product

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  4. Everyone should have the Knowledge of Travel insurance policy so that can live Tension free

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  6. There are many types of travel insurance that can be perched from online. Single trip, multi trip, student, senior, international,domestic travel insurance. Visit any online travel insurance portal & select the plans that fulfills all your travel requirement.

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  7. Read your blog its really informative and keep updating more post on travel insurance

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  8. Great article, thank you for sharing. Travel insurance provides you with protection from medical costs and Travel insurance can cover disruptions to your trip.

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