Travel Insurance

Whenever I go overseas for a holiday, I will buy the travel insurance. Recently, it comes to my mind on whether there is a need to do so. The reasons are as follows:

  • The travel policy covers loss of luggage, flight delay and other risks. The amount of compensation is quite small about few hundred or so.
  • If one falls ill during the holiday, the medical expenses may cost a few hundred dollars. The chance of making a claim is rather low.
  • If the chance of a claim is 1 in 100, it may be worthwhile taking a risk. The saved premium on 100 trips would probably cover any future claim.
  • The risk can be covered under the personal accident. A personal accident policy may be insured by paying an annual premium of $600. This covers one for accidents 365 days, 24 hours a day, in Singapore and overseas.

Based on the above reasons, it is advisable to avoid buying travel insurance.

WTK

Author: firewtk

A middle-age Singaporean currently having a minimalist and simple lifestyle. I am not longer in full-time employment with effect from 1 May 2019. I try my very best to write one post per day on this blog. The purpose is to share my prevailing thoughts to interested readers. It is up to the interested readers to decide whether they want to take action in embarking on the FIRE journey. I do not gain anything from this blog and it is solely for sharing hopefully for the benefits of all interested reader. WTK

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