Which is Better: Individual Or Group Travel Insurance?

Policy limit

The undeniable advantage of getting a single travel policy is the entire policy limit is available to each individual. That’s to say, if your plan offers S$300,000 in overseas hospital benefits, the entire sum is reserved to meet your needs. 

In a group policy, while each person may be entitled to a stipulated benefit, there is also an overall policy limit imposed. This can drastically reduce the benefit received by each person. 

Here’s an example, purely for illustration:

Source: Direct Asia

The screenshot above shows Direct Asia’s Family Travel Plan’s benefits offered for overseas medical coverage and medical expenses upon returning to Singapore.

Notice that while the lowest tier of the plan offers up to S$150,000 coverage per adult or child, this is stymied by a limit of S$375,000 for the entire family. 

This is equivalent to 2.5x of the limit accorded to each person, which means that if three or more persons in your travel group requires medical attention, the maximum coverage available to each person shrinks to only a portion of the individual limit.

It’s important to stress that this doesn’t necessarily pose a problem, as not every traveller may require the same scope or type of treatment, even if multiple persons meet with injury. 

Still, it is worth noting that because of policy-wide limits, there is a higher potential of a gap in coverage when faced with extreme situations, and this risk increases when more persons are included in the group.

This can be somewhat ameliorated by choosing a higher-tier plan. For instance, going up one level in Direct Asia’s plan will bump up the family limit to S$500,000, allowing more breathing room. 

Another tip is to limit the number of persons included in each policy, splitting up the entire group over two or more policies as necessary. In the same vein, some insurers impose a maximum limit per group policy. 

Customizability 

Individual plans have got group plans beat for this one. 

Travel groups may comprise travellers with different needs, whether due to:

• Age – older travellers may require higher coverage, compared to younger adults and children 
• Health statuses – some travellers may require coverage for pre-existing conditions
• Schedules – some friends may want to extend their trip 
• Preferences – not all may want to go bungee jumping 

As such, a single group travel plan may not be able to satisfy all travellers, and trying to fit everyone into a group policy may inadvertently create problems.

Choosing a plan based on common needs only will mean some group members could only be partially covered. Going the other direction and attempting to cover every activity and need may require the group to pay for coverage and benefits that are not necessary across the board, which means wasting money. 

These issues can be neatly avoided by simply going for individual travel policies that are tailored to each traveller’s needs and preferences. This way, every person pays only for the coverage they want. 

Individual or group travel insurance – which is better?

Both individual and group travel plans have their benefits and drawbacks. 

A group policy can help you save money, but are better suited to highly homogenous travel groups. On the other hand, individual policies cost more, but offer a closer fit for each person travelling with you. 

We say, don’t sweat it. When in doubt, prioritise coverage over cost. The difference in premiums is likely to be minor, and ultimately not worth agonising over. 

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