What Is Travel Insurance?

Travel insurance, also known as holiday insurance, is a policy that protects travellers from unforeseen financial losses before, during, or after a trip. Whether you're facing a flight delay or a medical emergency abroad, having the right travel insurance can help you recover costs and travel with peace of mind.

Ready to find out more about what travel insurance is? We’ll walk you through all the essentials—types of coverage, cost factors, and more.

Travel insurance is your safety net when things don’t go as planned. Whether it’s a missed flight, lost luggage, or an unexpected medical emergency overseas, this policy reimburses or assists you when you need it most.

Demand for travel insurance surged after the COVID-19 pandemic as travellers grew more aware of trip-related risks, and as a result, the global travel insurance market is set to grow at a compound annual growth rate (CAGR) of 15.35%, increasing from $49.65b in 2025 to $86.39b by 2030.

In Singapore, you can get travel insurance from standalone providers or via premium credit cards. However, benefits vary significantly across insurers and regions. That’s why it’s important to compare policies before committing.

At SingSaver, we do the heavy lifting for you. We’ve evaluated several travel insurance providers in Singapore based on key factors like coverage, flexibility, and claims support. Check out our list of the best travel insurance to find a plan that suits your travel style and protection needs.

Travel insurance typically ranges between 4% and 6% of your total trip expenses. This amount depends on a mix of factors, from the destination and trip duration to your chosen coverage and personal profile.

There are several types of travel insurance plans available:

• Single Trip Plan: Great for one-off holidays, providing coverage for a specific trip.

• Annual Cover Plan: Cost-effective for frequent travellers, offering protection for multiple trips over a year.

• Individual Plan: Designed for solo travellers who want flexible and tailored protection.

• Family Plan: Covers spouses and children under one policy—ideal for hassle-free family vacations.

Here’s what else affects your premium:

• Extent of coverage
  Comprehensive plans with medical, cancellation, and baggage protection are usually pricier than basic policies.

• Length of trip
  The longer your travel duration, the higher the risk—thus, a higher premium.

• Geographical area of travel
  Heading to countries with high medical costs or political risks? That could drive your premiums up.

• Age of traveller
  Older travellers often pay more, given the increased likelihood of medical claims.

Travel insurance policies are designed to be flexible. Whether you're a solo adventurer or travelling as a family, there's a plan that balances your budget with your risk profile.. Whether you're a weekend explorer or globe-trotting family, there’s a plan that fits your needs and budget.

Travel disruptions can strike unexpectedly, but having the right coverage ensures you're not left out of pocket. Trip cancellation is a pre-departure benefit that reimburses you for prepaid, non-refundable reservations such as flights, accommodations, and tours—provided the cancellation is due to a covered reason, like illness, injury, or natural disasters. On the other hand, trip interruption coverage kicks in once you’ve already departed. If you need to end your trip early due to an unforeseen event—such as a family emergency or personal injury—this benefit helps cover the unused portion of your trip as well as additional transport costs to return home. Lastly, travel delay coverage provides reimbursement for essentials like meals, accommodation, and transportation when your journey is delayed beyond a set number of hours due to events like flight cancellations or severe weather.

For example, imagine you booked a S$4,000 trip to Japan, including flights, hotel stays, and activities. Just days before your departure, you come down with the flu and your doctor advises against travelling. If you have trip cancellation coverage, you can be reimbursed for the full prepaid amount. Now, suppose you make it to Japan, but midway through your trip, you fall and fracture your foot. After a hospital visit, you're advised to rest and cut the trip short. Trip interruption coverage would then reimburse you for the unused hotel nights, your original return flight, and the cost of a new, earlier flight home.

Cancel for Any Reason (CFAR) coverage is an optional add-on that gives travellers the flexibility to cancel their trip for reasons not typically covered under standard policies. This benefit allows you to cancel your travel plans for literally any reason—whether it’s a change of heart, personal concerns, or simply feeling uncomfortable about going ahead with the trip. To qualify, cancellations usually need to be made at least 48 hours before departure, and reimbursement typically ranges from 20% to 75% of your non-refundable trip expenses.

For instance, if you've booked a S$3,000 holiday but begin feeling uneasy about flying—despite there being no official travel advisory—you could still cancel and receive partial compensation, provided you've purchased a CFAR policy and meet the cancellation window. This add-on offers an extra layer of control and peace of mind, especially in today’s ever-changing travel landscape.

Travel insurance isn’t just about flight cancellations and lost baggage—it also plays a critical role in covering serious health emergencies while you're abroad. Emergency medical evacuation ensures you're transported to the nearest suitable medical facility or brought back to Singapore if you experience a life-threatening illness or injury while travelling. Medical expenses coverage helps pay for treatments received overseas, from hospital stays and surgeries to prescriptions and follow-up care when you return home. Meanwhile, personal accident coverage provides a lump-sum payout in the unfortunate event of accidental death or permanent total disablement during your trip.

These benefits are particularly vital if you're travelling to countries with costly healthcare systems, such as the United States or Switzerland, where even a short hospital visit can result in significant bills. Having this protection in place means you can travel with greater confidence, knowing you’re safeguarded from the unexpected.

Losing your belongings while travelling can be a stressful experience, but travel insurance can help ease the burden. Most policies offer coverage for the loss, theft, or damage of personal possessions such as luggage, electronics, passports, and travel documents. Depending on the policy, this benefit reimburses you for the replacement value or provides a partial payout, allowing you to replace essential items without disrupting your trip.

For example, if your baggage is misplaced en route to London, your insurance policy might offer up to S$2,000 in compensation for the lost items. This can help you quickly purchase clothes, toiletries, and other necessities so you can carry on with your plans without major inconvenience.

>> Learn more: Essential travel insurance resources to maximise your benefits in Singapore

Travel is unpredictable—but your finances don’t have to be.

By understanding what travel insurance is, what it covers, and how to select the right policy, you’re not just protecting your holiday plans. You’re safeguarding your finances, health, and peace of mind.

Before your next flight, take a few minutes to compare plans. You’ll thank yourself later.

Looking to earn more from your next adventure? The right travel credit card can help you rack up miles, enjoy airport perks, and stretch your travel budget further. Here are some of the best travel credit cards in Singapore for 2025, depending on what matters most to you:

• Best for miles: Citi PremierMiles Card

• Best for cashback with no minimum monthly spending: Standard Chartered Smart Credit Card

• Best for overall cashback: UOB One Card

• Best cashback for shopping and dining: HSBC Live+ Credit Card

• Best for frequent flyers: HSBC TravelOne Credit Card

• Best for fuel discounts: Citi Cash Back+ Card