When we buy travel insurance in Singapore, we want to ensure that we can have fun during our holidays with a peace of mind.
However, the terms used in insurance policies and the long lists of exclusions can sometimes make us cautious about what exactly is covered when a crisis happens.
1. Financial Default/Insolvency
This term is commonly used in a travel insurance policy to refer to a tour operator or airline going out of business with or without filing for bankruptcy.
Travel insurance may be able to refund you the amount you have paid to the travel operator in such cases but it depends on the policy.
2. Inclement Weather
This refers to any severe weather condition that can cause delay to the scheduled arrival or departure of a flight.
Depending on how severe the conditions are, it can affect how your travel insurance covers you.
For instance, bad weather can cause a missed connection, a trip delay, trip cancellation or interruption.
Missed connection – Travel insurance usually provides reimbursement for the additional costs to "catch up" on your planned travel itinerary after you've missed your initial connection.
3. Medical Evacuation
This refers to transport arrangements for the insured to a medical facility or back home due to a need for medical treatment attributing to an injury, accident or medical condition.
4. Medical Expense Coverage
One of the main reasons for taking out a travel insurance is to make sure that you will not incur unnecessary costly medical expenses during a crisis.
Most travel insurance policies will provide reimbursements on your medical expenses overseas and even post-travel treatments back home.
5. Policy Period/Effective Date
The starting date with which your travel insurance takes effect. You can purchase travel insurance coverage per trip or an annual policy that covers you for a full year. Premiums are also different depending on the geographical locations that you are travelling to.
Take an annual plan if you travel more than 4 times a year as it will usually be more economical than taking a single policy each time you travel. It also saves you the hassle of signing up for one each time before you travel.
6. Pre-Existing Conditions
The term is not only important for travel insurance but for health insurance and life insurance as well.
A pre-existing condition is a physical or mental health condition of the insured that existed before the effective date of the policy.
The insurer will usually not pay for any loss or expenses incurred due to a pre-existing condition.
7. Breach Of Government Warning
Governments usually issue a travel advisory if they feel that it might not be safe for its citizens to travel to some regions in the world.
These can be health-related (contagious disease), or due to natural disasters, terrorism or labour strikes.
If you have pre-paid your vacation and prefer to go ahead with your plans despite the travel advisory, you will most likely not be eligible for claims if anything unfortunate happens.
If you're planning on travelling and would like to save money on your trip, take a look at our pick of the best travel credit cards in Singapore.