When buying travel insurance, we select the single trip option out of habit.
But if you’ve already scheduled a few trips for the year, an annual multi-trip policy can actually help you to save money, so you have more for experiences.
This simple checklist can help you to decide if a single-trip or annual travel insurance works better for your family.
1. Your to-do list is long, and you want convenience
With an annual plan, you make a one-time purchase which covers you for an unlimited number of trips (usually up to a maximum trip duration of 90 days).
It is highly convenient as your daily to-do list at work and home is already long, and you won’t have to remember to buy travel insurance every time before you travel.
Any time you decide on last minute drives up to Malacca, or weekend shopping/eating trips in Bangkok, your family (if you get the family version) is covered.
2. You’re travelling far
Most people tend to stay longer when travelling faraway, as it makes the long flight and fuel/airport taxes more worthwhile.
When you have a few little ones travelling with you, the costs can add up. If you’re making multiple trips to further destinations, an annual plan may be more worth it.
3. Your trips aren’t longer than 90 days
Many annual plans have a maximum trip duration of 90 days.
So if your trip lasts for more than 90 days at a stretch, say if you decide on a round-the-world trip with your little ones, or an extended eat-pray-love trip to recharge.
In these cases, it would make better sense to buy a single trip plan.
(Before buying anything, always check the fine print!)
4. You’re taking a longer cruise
Not all modes of transport are created equal.
For instance, cruises beyond Asia (such as in US and Europe) typically have a longer duration. An annual travel policy could more economical in this case.
Moreover, cruises often have very high medical and evacuation expenses, so make sure your coverage limit is high.
5. You’re taking your parents on holiday
Annual multi-trip policies often have lower maximum age limits.
So if you’re taking your elderly parents on holiday, check the age limit of the policy. The fine print means it may make more sense to buy a single-trip policy instead.
Two pro-tips from those who’ve bought annual policies
Pro-tip #1: Get a policy that covers all your potential trips
This is a particularly useful tip if your itinerary hasn’t been fixed.
You’ll probably want to get the most worth-it policy for your family, but the cheapest policy isn’t always the most suitable.
You might save money (initially) with a policy that covers only South-East Asia, but if you decide to take the kids and parents to Hong Kong, Taiwan or Japan, you’ll have to get another one. More cash outflow.
So, our little tip is to buy a policy that covers the places that you think you might travel to in the next 12 months.
And if Europe or the US is on your list, a worldwide policy might make the most sense as it covers any unexpected change in stopovers too.
Pro-tip #2: Ensure your policy covers all your adventures
Coverage of adventurous or “risky” activities usually comes at a higher cost.
So if you’re planning to do little treks, take a helicopter ride or even para-sail by the beach… get the top tier policies. That’s because these kind of activities tend to be included in only the top tier policies. Don’t be penny-wise, pound foolish!
