The Insurance Company Guide to Travel Insurance

If you’re planning on going overseas then its important to understand that you will face a range of risks not commonly encountered in your everyday life. From the possibility of being robbed while overseas on a business trip, to that of being bitten by a mosquito and getting Dengue Fever while on holiday, a lot can happen on any given trip.

It is important to be prepared.

While nothing is going to prevent an accident from occurring, or keep your stolen items in your bags once a thief has decided to take them, there are avenues for ensuring that you are able to recover from a loss as quickly and painlessly as possible.

One of those avenues is through the purchase of a travel insurance policy.

What is Travel Insurance?

Travel Insurance is the term given to a type of insurance policy that incorporates a number of separate coverages under a single umbrella, in order to give you as much financial protection as possible while you are traveling.

Hong Kong travel insurance plans are designed to protect you while you are outside the borders of HKSAR, either for work or pleasure. Travel Insurance can be obtained either on a “per-trip,” or annual basis.

How does Travel Insurance Work?

A travel insurance policy will provide you with insurance coverage for the duration of any trip you may take outside of Hong Kong. This type of insurance is time sensitive, and will only cover you while you are actively traveling – for the purposes of insurance, the dates on which you leave and return to Hong Kong are considered “travel dates.”

If you suffer a covered loss while on your journey, then the insurance will reimburse you up to your policy limits, subject to any applicable exclusions.

What does Travel Insurance cover?

There are many different types of travel insurance, and depending on the plan and insurance company you choose to purchase from, some things may be included or excluded in your travel insurance policy.

Typically, you can expect to find the following coverage benefits on most Hong Kong travel insurance options:

• Health insurance
• Personal Accident Insurance
• Trip Delay
• Trip Cancellation
• Loss of Luggage and Personal Effects
• Emergency Evacuation and Repatriation
• Personal Liability Insurance

It is often possible to purchase travel insurance that is focused only on one of these benefits, like Health Insurance. However, it is often simpler to cover your overseas healthcare risks with a dedicated international medical insurance policy.

In some cases, a specific insurance company may offer more comprehensive travel insurance coverage, and in other cases less. It is important that you understand your risks when abroad and select the travel insurance solution best placed to address those concerns.

Can I rely on Travel Insurance for medical cover?

While most travel insurance in Hong Kong will offer a medical insurance benefit, it is important to understand that this coverage is largely palliative – that is to say, a Hong Kong travel insurance plans are not intended to support long-term medical treatment while overseas.

If you are seriously injured or suffer a critical illness while overseas, your Hong Kong travel insurance plan is designed to get you back to HKSAR where it is assumed that you will go into the public medical system for continuing, low-cost, care.

If you are concerned about your emergency medical costs overseas there are dedicated travel insurance options that will offer much higher levels of protection for unforeseen risks. However, it should be noted that these plans are typically much more expensive than ordinary Hong Kong travel insurance products, and will require that you purchase any coverage outside medical insurance separately.

How much does Travel Insurance cost?

The cost of travel will largely depend on the type of plan you are purchasing, and the insurance company you are purchasing your policy from. A good rule of thumb is that more expensive plans tend to offer better benefits, but this is not necessarily always the case.

If you are purchasing a single trip travel insurance policy, then the length of your journey will have a fundamental impact on the cost of the policy – taking a longer trip will mean a higher premium. For annual plans, the costs are fixed every year no matter how many trips you take. However, you are generally limited in terms of the duration of any single trip, with trips outside 30 days in length often being excluded from the cover and requiring the purchase of a separate, stand-alone travel insurance plan.

In some cases your age, or your travel destination may also play a role in the cost of your plan. It is important to check if this is the case on any plan you may be purchasing as you could end up paying more than you would for comparable coverage on another plan.

Can I Purchase Travel Insurance if I am already Overseas?

In some cases, again depending on the insurance company you are working with, it may be possible to purchase a travel insurance policy if you have already departed on your journey. However, it is important to realize that restrictions may exist; for example, many travel insurance products may place a delay on the coverage, or a waiting period.

This means that if you purchased your travel insurance plan when already overseas, the coverage may not actually start to protect you for a certain number of days after it has been purchased. In many cases, this waiting period can be as few as 3 days from purchase, or as long as one week. This means that if you experience a loss during the waiting period, that loss will not be covered under the policy, even if it would have otherwise been included in the plan’s protection.

Free Travel Insurance Advice

If you would like to learn more about Travel Insurance, or if you would like to compare a free quotation of all your leading options, please Contact Us to speak directly with an expert advisor today.

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