A break from our hectic lifestyle, holidays are meant for us to slow down and relax. Therefore, wouldn't it be a nightmare if you were to encounter a disastrous situation on a holiday? Just imagine having your bags all packed and ready for your trip only to realise that your flight had been cancelled at the eleventh hour. Or what if you were to unfortunately fall ill and require medical assistance in a foreign country? Would you then be prepared to handle these crises? To allow for a better understanding, we highlight how you could handle these situations and what to do when faced with these unfortunate events.
(See "5 Luxuries You Can (Almost...) Purchase With Your Daily Coffee")
#1 Lost Luggage(s) or Personal Items
What do you do if your luggage and/or other important personal items were lost in transit? Arriving at your destination unprepared without a change of clothes and/or other necessities, would this ruin your holiday? Or perhaps your pricey electronic gadgets and/or jewellery had been checked into your lost luggage, would you then be prepared to bear the hefty replacement cost? In such situations, it thus becomes important for you to have travel insurance and also, to know what you are entitled to from the airline.
For example, if your luggage does not appear on the luggage belt and is subsequently declared as lost, then it could be the airline's responsibility to compensate. However, the pay-out from airlines may be inadequate as they may not cover the cost of your lost valuables with lost items unrelated to the flight excluded from any compensation. Moreover, in the situation of a delayed baggage, airlines would only reimburse the purchase of bare essentials whereas travel insurance may allow for a higher level of compensation.
(See "How Much Does It Cost To Live In Singapore 30 Years From Now?")
#2 Flight Delays or Cancellations
Imagine arriving at the airport only to realise that your flight has been cancelled or delayed. In such a situation, this would either result in you purchasing expensive replacement tickets or having to call off your trip. These flight delays may also affect your travel schedules and could result in you missing your connecting flights and/or incurring additional unexpected costs. This would be especially relevant if your flights are delayed for an extended period and you are left stranded abroad. Having travel insurance would then allow you to receive reimbursement for these additional expenses.*
Furthermore, while airlines are obliged to provide meals, accommodation and transport for extended flight delays, these compensations do not extend to delays that are a result of poor weather conditions or strikes. However, travel insurance on the other hand, provides coverage for these scenarios and would pay-out in these circumstances. Therefore, purchasing travel insurance could allow you a peace of mind knowing that you have comprehensive coverage for your trip.
*Reimbursed cost is dependent on the policy purchased. Hence, be sure to read the terms and conditions for every policy and ensure that you are comfortable with the condition for coverage.
(See "Are Financial Disasters Your Thing? Here's 4 Mistakes You Must Avoid")
#3 Personal Accidents
One travel insurance benefit that many do not wish to activate is the personal accident cover in travel insurance. This is because a personal accident claim represents that an accident has occurred. Covering for accidental death, permanent disablement or third degree burns, travel insurance ensures that you receive pay-outs for these personal accidents and could allow you some assurance. If the death was a result of a traffic accident, additional pay-outs would also be given out. This coverage is also extended to your immediate family, with payments given out to your children or spouse should you suffer an accidental death or permanent disablement while abroad. Therefore, while it may be unfortunate to have to make a personal accident claim, it at least ensures that you are protected for your trip.
(See "Want To Retire By 55? Here's How Annuities Can Help")
#4 Medical Expenses
Covering for outpatient and hospitalisation expenses incurred both abroad and in Singapore, travel insurance would come in handy should you require medical assistance. This allows you to receive the necessary treatment and ensures that costs are not of concern in an emergency. Furthermore, in the unfortunate event that you are hospitalised, hospitalisation allowance is also given out to the insured. Additionally, if you require a family member to accompany you when you are hospitalised abroad, you could also claim from the insurer for compassionate visits. Other expenses incurred from accommodation or travel as a result of your illness or accident are also payable by the insurer.
(See "Why Cheapest Isn't The Best (Policy)")
With travel insurance providing solutions to travel crises, it should be an essential that you 'take along' on your next holiday. Therefore, hesitate no more and allow FSMOne to make your trip a worry-free one!
Buy Travel Insurance Here >Interested to learn more? Check out these articles:
Understanding Endowments in 5 Simple Steps
Should Your Insurance Look The Same When You're 25 And 50?
5 Amazing Countries You Can (Almost...) Retire With Your CPF