Getting the right coverage when you travel

When you travel abroad, be it for work or leisure, the last thing you want to worry about is incurring hefty medical expenses or financial losses should any unexpected events occur

So begs the question—What does basic travel insurance cover? To break it down, travel insurance can be categorised into three different groups—travel related coverage, medical coverage, and personal accident, death and disability coverage.

Travel related coverage

Trip Insurance is pretty straightforward and does exactly what the name indicates. It covers you in the event should you require canceling, delaying or interrupting your trip. Additional coverage to look out for would be loss of baggage, travel documents and personal liability coverage.

Personal Liability coverage protects you from any legal liabilities when overseas. Say for example, you run into an accident overseas and accidentally damage someone’s property, Personal Liability Insurance will cover you should you be legally liable to pay compensation, or any legal costs incurred.

Medical Coverage

Medical Travel Insurance will cover you if you fall ill or become injured during the period of your travel. There are many unfortunate instances that could land you in a hospital during your holiday or business trip and bills could easily mount up to more than the entire cost of your trip. To counter this problem, choose a policy that will reimburse you for hospitalisation, surgery, treatments and follow up treatments.

Do note, though, that most insurers will not cover for pre-existing conditions and illnesses. Also, do consider getting extra coverage especially in countries with higher medical fees, as those are the ones more likely to burn a larger hole in your pocket in the event of any unfortunate incidents.

If you are planning to head to a rural or remote area, it is highly important to consider Emergency Medical Evacuation Insurance before your trip. Without coverage, out of pocket expenses could easily set you back from a few hundred to a few thousand dollars.

Personal Accident Coverage

Personal Accident Insurance provides lump sum payout in the event you become permanently disabled or when a death is incurred due to an accident during the trip. Payout will be based on the plan you pick up and benefit levels can vary depending on the policy.

Types of plans available

If you are a frequent traveller, it is more economical and convenient to take up an annual travel insurance policy that will cover you for multiple trips. However, if you only travel once in a blue moon, take up a single trip policy. Family plans are also available for single or annual trips.

Look around at the different policies the market has to offer and conduct some research to find out which policy suits your needs and situation. In order to have a better idea about the different types of policies available, the best option would be to hire an insurance agent to advise you accordingly as he or she will be the most equipped to answer your pressing questions and help in administering your claims should the need arise.