Buying travel insurance is a must when going on overseas holidays. But if we are honest with ourselves, not many of us actually know what benefits the travel insurance we have purchased entitles us to, or even bother to read the policy document.

Not being aware of what we are getting when we buy travel insurance is risky. Not only does it mean that we might unknowingly miss out on claiming certain benefits, it could also have an even worse consequence—getting a rude shock when we discover that we are actually not covered for something we thought we were, at the very moment when we are trying to make a claim.

The good news is that travel insurance does not have to be complicated. By the end of this piece, you should understand what travel insurance can protect you from, what exclusions are, and how to choose the right travel insurance policy for your needs.

What is travel insurance and what does it protect you from?

Many things can go wrong when you are travelling abroad. You might get a bout of food poisoning and have to visit a doctor for medication. You might break a leg while trekking and need to be evacuated to the hospital. Your luggage might get lost in transit, or your phone might get pickpocketed.

Travel insurance can protect you from all these things and more.

In general, a good travel insurance policy’s coverage can be classified into the following categories:

1) Medical expenses

All travel insurance policies should offer coverage for medical expenses incurred overseas. This is necessary in case you fall ill or get injured while abroad. The policy should cover your medical bills up to the coverage amount stated in the policy document.

You should check if your travel insurance will also cover medical expenses incurred in Singapore upon your return. This is good to have in case it is necessary for you to seek further medical attention in Singapore for an illness or injury sustained while overseas, or in the event that you have to seek treatment in Singapore rather than abroad.

Another thing to look out for under this category is a hospital cash benefit, which typically offers a payout for each day you spend in the hospital.

Emergency medical evacuation is also important to have, as the costs of being flown back to Singapore in a medical emergency can be astronomical. Be sure to check the amount covered by your policy, as this is one area you do not want to skimp on.

While COVID-19 is largely under control in Singapore, remember that the disease has not been eradicated, with many cases and even deaths still happening worldwide. Some travel insurance policies either do not offer coverage for COVID-19, or will require you to purchase a rider to obtain protection from the virus.

It is best to select a travel insurance plan which will protect you from COVID-19, such as HL Assurance’s COVIDSafe Travel Protect360. The plan offers comprehensive COVID-19 coverage, including overseas medical expenses, hospital cash benefit, quarantine allowance and trip cancellation, postponement and curtailment due to COVID-19.

2) Personal accident

A good travel insurance policy should include personal accident coverage, which will offer a lump sum payout if you should suffer from accidental death or permanent disablement while travelling. The lump sum will offer financial support to you and/or your family in the event that something happens to you.

3) Travel inconveniences

All travel insurance plans should offer protection for travel inconveniences. These typically include baggage delays and loss, trip cancellation, travel delays or postponement, trip disruptions and loss of money, documents and personal belongings.

It is important to compare the amounts being paid out under the travel inconveniences category, since things like baggage delays and pickpocketing are not uncommon.

This category is also the reason you should buy travel insurance soon after you book tickets for your trip. If your trip is cancelled or postponed due to, for instance, a natural disaster or an illness before your departure date, you will be protected if you have already bought travel insurance.

4) Personal liability

If something that happens on your trip leads to you getting sued or having to pay for damages, personal liability protection can cover these costs as well as your legal fees.

5) Lifestyle

A good travel insurance policy might offer other lifestyle-related protection.

For instance, HL Assurance’s COVIDSafe Travel Protect360 offers coverage for credit card protection, rental car excess, loss of home contents due to burglary while you are away and golfing “hole in one”.

What are travel insurance exclusions and why is it important to

read them before you buy?

It is paramount to read the exclusions list on any travel insurance policy you are thinking of buying, as they can prevent you from making certain claims.

Exclusions refer to things that your travel insurance policy will not cover you for. For instance, planned medical treatment will typically not be covered, so you cannot deliberately seek medical treatment abroad hoping that your travel insurance will pay for it.

Pre-existing medical conditions are also often excluded from travel insurance protection. This means that if you are already suffering from a medical condition, you will not be able to make a claim for treatment sought overseas for this condition, even if the need for it arises unexpectedly. Therefore, if you are suffering from a pre-existing or chronic condition, you should opt for a travel insurance policy that does not exclude pre-existing conditions.

Certain sports and outdoor or otherwise risky activities such as scuba diving, skydiving, mountaineering or white-water rafting might be excluded, so if you are planning to do any sports or underwater activities, check that they will be covered.

Exclusions might also provide information about requirements that must be fulfilled if you wish to make a successful claim, so read them carefully. For instance, in the event of loss or theft of personal belongings, your travel insurance policy might exclude losses that are not reported within 24 hours to the local police.

How to choose the right travel insurance policy for your travel needs

Now that you know what good travel insurance should offer, it should be easier to make an informed decision when you pick a policy.

Here are some steps to take before buying travel insurance.

1) Read the coverage and claim limits

Using the first half of this piece as a guide, you should now have an idea of the various types of travel insurance coverage you will need. Read and evaluate the coverage being offered by any plan you are considering. You should also look at the claim limits, as these will determine how much money you can claim in each category.

Many insurers offer several tiers of the same travel insurance plan, with the higher tiers offering higher claim limits. You can choose a tier based on your budget and your preferred claim limits.

2) Evaluate your needs and read the exclusions to ensure none of your activities or existing health conditions will be excluded

You should think about the activities that you will be participating in on your trip, especially any sports or outdoor activities. If you have any pre-existing medical conditions, you will need to take note of them as well.

Next, read the exclusions and make sure you will not be affected by them. If you are, it is best to check if a different travel insurance policy will cover you for pre-existing conditions or the activity you will be engaging in overseas.

It pays to choose your travel insurance with care! A good travel insurance policy will offer protection for all the activities you undertake on your trip, while covering you for any medical costs you could potentially incur abroad. Travel safe with HL Assurance’s COVIDSafe Travel Protect360, a comprehensive travel insurance policy offering COVID-19 coverage.

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Written by Joanne Poh – 18 September 2024
About the author:
Joanne Poh is a freelance writer specialising in insurance, property and personal finance. She has written content for some of Singapore’s most prominent insurers, banks and fintech startups, as well as channels such as MoneySmart, PropertyGuru and The Straits Times. Her work has been featured on portals such as Yahoo!, MSN, AsiaOne and herworldPLUS. As a writer, her mission is to give readers digestible information that can help them make better decisions.