Money Talks Podcast: Think travel insurance is unnecessary? Think again.

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When making travel plans, buying travel insurance is usually treated as an afterthought. In this episode of Money Talks, Cherie Wang, co-founder of Planner Bee tells Andrea Heng why this shouldn’t be the case, and highlights what fine print to look out for to ensure you can travel with a peace of mind.

(Photo: iStock/MixMedia)

Here is an excerpt of the conversation:

Andrea Heng, host:

When I shop around for travel insurance, I tend to go for the cheapest one, which you’ve told us not to do. We should avoid that. But what about shorter trips? I'm going for a couple of days to Melaka, something that's not too far away.

But I'm still in a different country. So I feel like, “I don't think anything's going to happen. I'll just buy the cheapest one. I should be good.” What's your take on that?

Cherie Wang, co-founder of Planner Bee:

Possibly okay. So the way we see it is the amount of risk they are taking. What would the risk cost? So in Melaka, I assume it could be a drive there, right? The risk of transporting a person that's sick back (home) - how much would that cost?

If I'm sick, would the hospitals there be more expensive than the ones in Singapore? If ... the cost is pretty low, then maybe the basic plan would help you sufficiently in those situations.

But I wouldn't look at the length of the trip alone. I would look at the cost of living in that country. Because if we go to Switzerland and then we end up in a ski accident, the cost of medical bills in Switzerland is notoriously expensive.

So in (Switzerland, Hong Kong, Singapore and the US), the bills are no joke. It will be a very long trip back home. Then I would go for a higher tier plan.

Andrea:

Long and painful, not just for the person but for the pocket as well. So you talked about how at least a week before your trip is the best time to book your travel insurance. Or when you book your flight. Can you do it on the plane if you forget?

Cherie:

Strictly speaking, you can buy it before the flight. The insurance will still be honoured. But the moment you leave the country, just don't bother buying it because it will be voided anyway.

But there is one insurer though - last year they launched a new feature where you can buy (travel insurance) if you're one day into the trip. So that's good for people who forgot but remember just in time. Maybe they got off the flight and immediately bought it. There are some exclusions on certain situations, but it's better than nothing.

Find more episodes of Money Talks here.

A new episode of Money Talks drops every Tuesday. Follow the podcast on Apple or Spotify for the latest updates.

Have a great topic for us? Drop the team an email at cnapodcasts [at] mediacorp.com.sg

Source: CNA/jj

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