In recent years, taking multiple overseas trips in a year has started becoming the norm, rather than the exception. Singaporeans take overseas trips for all sorts of reasons, family holidays, a friend’s wedding or even business meetings.

A common policy to purchase prior to an overseas trip would be travel insurance. When it comes to travel insurance, consumers can choose either for single trip coverage, or annual coverage. But which should you be choosing?

Single Trip Coverage

Single trip coverage is pretty straightforward. You purchase coverage each time you take a trip overseas. Cost of insurance would depend on where you are going, the duration and the extent of coverage that you seeking.

Typically, most insurance providers would allow customers to decide for themselves between basic and premium coverage. Generally speaking, the main differences between the two would be the extent of coverage, with the premium coverage costing more in return for greater coverage.

It is important to note that not all travel insurance policies are created equal, and that consumers shouldn’t be comparing products simply based on the cost.

Before purchasing a travel insurance policy, ensure that the coverage provided are what you need for the trip. For example, if you are doing winter sports and need to ensure coverage for rental of equipment, be sure that the policy you are looking at provides it.

Annual Coverage

Annual coverage is for travellers who travel overseas frequently. Rather than to purchase the single trip coverage each time they travel, consumers can pay for a one-time fee policy that provides coverage for all overseas travel within the year.

The clear advantage in this is that if you travel often enough, it would make financial sense to purchase an annual policy, instead of the single trip coverage. But how much do you need to travel before this makes sense?

 

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