Relax - Travel with a safety net

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Travel with a safety net

By Gabriel Chen , The Straits Times | Tue, Dec 8 2009

Heading abroad this month? One item you will need is travel insurance, especially given threats like H1N1 and terrorism. Here is what to look out for when shopping for a travel policy.

Keywords

Have travel insurance, will travel - with peace of mind, that is.

As you spend big bucks on your year-end vacation, heading off without sound travel insurance may turn that planned pleasant trip into a holiday from hell, experts say.

Having adequate travel insurance is vital when overseas because a host of unforeseen situations can arise, such as flight delays or the loss of your luggage.

People who make it a habit to buy travel cover also do so because overseas medical expenses can be huge. Should a serious injury arise during the trip, you then need not fret about hefty medical bills.

The good news is that it does not cost an arm or a leg to buy travel insurance.

NTUC Income, for example, charges $30 per adult for a seven-day coverage under its Classic Plan. Coverage for the same period for children under 21 years works out to $7.50.

This plan is for countries such as Malaysia, Indonesia and Thailand. It includes treatment for the H1N1 virus if it is contracted abroad.

Travellers should shop around to find a policy that meets their needs. 'A traveller who travels with only carry-on bags may not see the value of loss of baggage coverage,' said Mr Kevin Goulding, president of the general insurance unit in Singapore of AIG, an industry giant.

'At the same time, a traveller who has adequate health insurance may not value the medical expense reimbursement benefit as much as a traveller who does not.'

Here is a checklist of what to look out for when buying a travel policy, as well as tips to make the claims process easier and more successful should you need to make one:

1 Don't wait until the last minute

Buy your travel insurance early, preferably right after booking the trip.

You may see it as yet another upfront payment right after paying for the holiday. But there are benefits in doing so: Travel cancellation coverage, for instance.

2 Buy what you need

It is important to ensure that the benefits of the plan are adequate to meet your needs, with better benefits offered at a higher premium.

'Should you be taking part in certain hazardous activities such as mountaineering, winter sports and underwater activities during your trip, you should extend the cover to include these risks by paying an additional premium,' said Ms Tang Yin Fong, senior specialist for risk management at independent wealth management firm Providend.