Annual vs Single Trip Plans: When is it more worthwhile to invest in an annual travel insurance plan?
Travel insurance plans come in two forms – single-trip plans that expire after the trip, or annual policies that stay active over a 12-month period.
Which travel insurance plan you should get is a matter of personal needs. Choose a plan that gives you your desired amount of coverage based on your priorities, such as coverage for pre-existing medical conditions, loss or damage of bags and belongings, or flight delays and cancellations.
Here are 4 scenarios where an annual travel insurance policy may work better for you than multiple single-trip ones.
Scenario 1: If you take multiple trips a year
Travel insurance plans often offer both single-trip or annual versions (both offer the same benefits and coverage scope on a per trip basis). So one way to decide between a single-trip or annual plan comes down to simple maths.
Although an individual single-trip plan is cheaper than an annual plan, buying multiple single-trip policies could add up. For example, if you regularly go day-hopping into Malaysia for groceries, entertainment and food on short notice, it might be cheaper to get the annual plan instead.
To find out which is cheaper, get single-plan quotes for all the trips you’ve lined up for the year. Add them up and then compare against the cost of the annual plan. Go for whichever is cheaper.
Scenario 2: If your trips last 90 days or less
You may have a whole year of travel lined up, but before you embark on your holiday, make sure that the duration of each trip lasts no longer than 90 days.
The majority of annual travel insurance plans offer up to 90 days of continuous cover per trip. (A “trip” is defined as from when you leave Singapore to when you get back.) This means you’ll not be able to make a claim for any incidents from the 91st day and beyond.
However, this 90-day period is reset when you get back to Singapore, and your annual travel insurance plan continues to remain in force.
Therefore, if one or more of your trips are going to be longer than 90 days, consider getting a single-trip travel insurance policy instead. Those will cover you for up to 180 days.
Scenario 3: If you plan to visit multiple locations around the world
Travel insurance plans are priced according to your destination. This means that if you’re planning to visit multiple locations located in vastly different regions of the world (Africa and Japan, for instance), you may find yourself needing to buy two separate annual travel insurance plans.
If that’s the case, get an annual travel insurance plan that gives you global coverage. This way, you can get the coverage you want without having to buy multiple expensive plans.
Scenario 4: If you need to fly on short notice
If your job requires you to travel regularly on short notice, it’s worth buying an annual travel insurance plan.
It’s one less thing to worry about in the hectic rush of always being in transit. Forgetting to buy a single-trip plan can prove costly should anything untoward happen during your travels.
By signing up for an annual travel insurance plan, you’ll have peace of mind whenever you need to pack your bags and go.
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