When you’re thinking about your next trip, you’ve probably done your research. You’ve picked a destination, planned your itinerary, methodically considered a location’s weather and the exact ratio of clothing to space in your carry-on. But there is one very important consideration that you may have forgot. Travel insurance. And you are not alone. Many Filipino travelers overlook travel insurance, and this oversight could have a high cost. From having your luggage stolen to injuring yourself while away, travel insurance can be a life and wallet saver, but oftentimes people simply don’t think to add considering travel insurance to their pre-trip to-do list.
Maybe it slips your mind, or maybe it’s an overwhelming prospect more easily avoided. What kind do you need, how much coverage is enough, and where do you even begin? We understand. So we consulted Julian Gutierrez, lead travel insurance advisor at TravelInsurance.com.ph, and Mark Kopec, head of travel insurance, Asia Pacific, at Zurich Insurance, on the importance of travel insurance for Filipino travelers – and what everyone should know before they head off on their next travel adventure.
While there are situations when less coverage may be necessary or elements of a plan that are less critical, it is always wise to consider the benefits of travel insurance when planning a trip. Unfortunately, many travelers don’t make travel insurance a priority. When considering the necessity of travel insurance, it’s important to ask yourself, “what are you prepared to lose if something goes wrong?” advises Kopec.
Luckily, we’re here to simplify the process, so that you set off on your next trip prepared for anything. Read on, for an introduction to the ins and outs of travel insurance, and use our Travel Insurance Estimator to find out which travel insurance option is best for you.
Travel insurance buying guide
Domestic travel
International travel
Family and group travel
Age and pre-existing conditions
Adventure travel
Frequent travelers
Where to get travel insurance
Travel insurance buying guide
Domestic travel
Many Filipinos often forgo travel insurance for domestic trips, but that is a mistake. When traveling domestically, you don’t need as much insurance as you would to travel internationally. However, it is still a good idea to have insurance in place to cover lost or stolen baggage, trip cancellation should you need to cancel at the last minute and a small amount of medical insurance. According to Gutierrez, for a one-week trip, travel insurance plans are available for as low as PHP$500 or less, and this includes medical expenses in case of unexpected illness or accident.
International travel
When traveling internationally, more insurance coverage is needed. Because the Philippines is a developing market in the travel insurance industry with low-cost premiums, there are a few special requirements that Filipinos should be aware of when purchasing travel insurance.
Travelers should always research the visa requirements of the countries they are visiting. For example, the Schengen region of Europe requires visitors have medical coverage equal to €50,000 euros and travel insurance must be purchased from a Schengen approved insurer. Not all providers are approved in all countries.
Insurance coverage is typically sold in brackets (for example, three to seven days). It is unusual to see a daily rate. Because medical expenses outside of the Philippines may be high, travel insurance can be a necessity should the unfortunate occur.
In addition, your travel insurance policy for foreign travel will often include a built-in 24/7 assistance hotline, in which you may find useful like pre-travel advisories, interpreter referrals, or even restaurant recommendations.
Family and group travel
Families traveling with minors can take advantage of family plans, which are a more affordable option than purchasing separate individual policies. Families are considered two adults (not necessarily married) and dependent children. Special attention should be paid to what age is considered a dependent. Often it is under 18, but may be extended until 25 when in school.
When traveling as part of a group, there are also low-cost alternatives for coverage, which may cost less than PHP$100 per person. Unlike typical travel insurance, however, this type of coverage may be restricted to only cover accidents and exclude illness coverage or inconvenience benefits. This type of group coverage may be used by travel agents for tour groups, but if you’re traveling with a group on your own, consult your travel or insurance agent to see if he or she could come-up discounts for group travels.
Note, for Schengen trips, most of the time a family travel insurance plan is accepted but a group travel insurance policy may not be recognized by the embassy.
Age and pre-existing conditions
Age has a massive influence on insurance eligibility. Most travel insurance plans in the Philippines have maximum age limits. Some will only insure up to 65 years old; some up to 75. However, there are insurers that can accept travelers above the age of 75, but premiums will be more expensive. Travel insurance in the Philippines also excludes pre-existing conditions, including pregnancy (the limit is 22 to 26 months).
Adventure travel
If you are heading off on a bucket-list adventure – think scuba diving, mountain climbing or bungee jumping, you may want to consider a more comprehensive travel insurance product. In the Philippines, there are not currently insurance products specifically for this type of travel as you may find elsewhere, but you definitely want to consider the nature of your trip and plan accordingly.
Frequent travelers
If you travel often, both internationally and domestically, it may be cost effective to invest in an annual travel insurance policy. If you leave the country three times a year, or even take two international trips and one domestic trip, it can be worth it. An annual policy covers unlimited trips per year (up to 90 consecutive days per trip). Renew it once a year and travel without having to acquire policies every time you plan a trip.
Where to get travel insurance
There is no one place where it is best to get your travel insurance. The best thing to do is to research the things you want covered and buy the product that makes the most sense. You don’t have to buy your travel insurance where you booked your trip. A travel agent is one place where you can buy travel insurance, but it is not the only place. Also, it’s important to note, while you may assume limited coverage provided by airlines or credit card companies may be enough, that is often not the case.
Airline insurance:
Many people rely on the limited amount of insurance provided by airlines when flying. While they do have a level of responsibility for lost baggage, this only extends to the flight and no farther – once you leave the airport, you are left to fend for yourself. If your luggage is left in a cab or stolen from your hotel, it won’t be covered. That said, you can buy additional travel insurance in the form of a standard product from the airline online when you book your ticket.
Credit card companies:
Often times, there is also a level of travel insurance provided by credit cards, but relying on it without doing a bit of research can be a problem. There are often limits to coverage and special conditions, such as a spending requirement. While it’s a good thing to take advantage of when possible, make sure to read the fine print carefully.
Main image: istockphoto/Prasit Rodphan
Slider image: istockphoto/photographer
