Should you get single or annual trip coverage?

By Jermaine Koh

If you’ve only got a minute:

• A single trip travel insurance plan covers one specific journey and is ideal for occasional travellers, while an annual plan provides coverage for multiple trips within a 12-month period, making it cost-effective for frequent travellers.
• To make the right decision, assess your travel habits, plans for the coming year, budget, and specific coverage requirements for destinations and activities.

When planning your next adventure, travel insurance is a  consideration. But should you opt for annual or single trip plan coverage? This article will help you navigate this decision by exploring the key differences and factors to consider.

Single trip plans cover one specific journey. It's ideal for occasional travellers or those embarking on longer trips. Key features include:

• Coverage for a specific trip duration
• Flexibility to customise based on trip needs
• Generally cheaper for shorter travel frequencies

Annual plans provide coverage for multiple trips within a 12-month period, usually with a limit on the duration of each trip (often 30-90 days). Key features include:

• Coverage for an entire calendar year, regardless of the number of trips
• Cost-effective for frequent travellers
• Convenient for those with multiple destinations or uncertain travel plans

For both types of policies, coverage begins when you leave your residence for the departure point in Singapore or 3 hours before the scheduled departure time, whichever is later. It ends when you return home, 3 hours after the scheduled arrival time, or on the policy end date, whichever is earlier.

Comparison at a glance

Single trip plan	Annual plan
Covers 1 trip over a specific period (e.g. 10 days)	Covers unlimited trips within the policy year
Generally cheaper for one-time travellers	More cost-effective overall for travellers  who go on longer and frequent trips in a year
Suitable for infrequent travellers	Ideal for frequent and spontaneous travellers

 

Key considerations

1. Travel frequency

If you're a frequent traveller, taking 3 or more trips per year, annual plans might be more cost-effective and convenient. For those who travel once or twice a year, single trip coverage is often sufficient and more economical.

2. Trip duration

While single trip plans can cover extended journeys for up to 180 days, annual plans typically limit individual trips to 30-90 days. If you're planning a long-term adventure, single trip plans may be a better option.

3. Cost-effectiveness

Annual plans have a higher upfront cost but might be cheaper overall, especially if you travel frequently. Compare the cost of an annual plan to the combined cost of single trip plans for your upcoming travels by

• Listing your confirmed trips for the year, including destinations and durations
• Use travel insurance calculators to get quotes for single trip plans for each journey (many insurers offer these tools on their websites)
• Get quotes for annual plans from various insurers
• Compare the total cost of single trip plans against annual plan quotes
• Check for ongoing promotions that could affect pricing (for example, seasonal discounts or offers)

Pro tip: Use comparison sites to quickly view multiple options side-by-side, but verify the details directly with the insurer and check the fine-print before purchasing.

4. Convenience

With an annual plan, you are always covered and you don't need to repurchase a new policy for each trip within the policy year.  This can be particularly beneficial if you are a spontaneous traveller who may forget to buy travel insurance or if you have an unpredictable schedule .

TravellerShield Plus

TravellerShield Plus is a comprehensive travel insurance underwritten by Chubb Insurance Singapore and distributed by DBS Bank. It provides:

1. Overseas medical protection

Up to S$1 million coverage for unexpected medical expenses abroad.

2. Loyalty points protection

If  your journey is cancelled due to specified causes, TravellerShield Plus reimburses you the cash value of the tickets and accommodation redeemed using your loyalty points.

3. Flexible payment

Option to fully offset premiums using accumulated DBS Points or POSB Daily$ with no out of pocket costs.

4. FlySmart flight delay cover

Unique add-on for single trip policies, covering flight delays as short as 30 minutes. Discover our ongoing TravellerShield Plus promotions here.

Choosing between annual and single trip plans depends on your individual travel patterns, budget and coverage needs. By carefully considering these factors, you can select the option that provides the protection you need  and value for your travels.

Remember, the most important thing is ensuring you have adequate coverage for your journeys. Most travel plan also cover medical cost if you have to see a doctor immediately after the trip, subject to a specified period. Regardless of whether you purchase an annual and single trip plan, having the right protection will give you peace of mind as you explore the world.

 

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Disclaimers and Important Notice
This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.