With air travel and accommodation now becoming more accessible to greater numbers of people all over the world, taking more frequent trips within the year often replaces the custom of a single annual holiday. Insurance options for travel have also expanded, with many different policies to suit different needs.
So how do you know if you need annual holiday insurance? With so many different options, it can get quite confusing, but here are a few guidelines to help you choose correctly.
What is a yearly policy?
The term annual holiday insurance can be quite confusing, so let’s break it down for a bit. This kind of cover allows you to purchase just one policy, which will cover any and all trips you will take in a 12-month period. If you are a frequent flier, this one may be the perfect policy for you.
Whether you take several holidays off within the year or fly often for business and just take one holiday, this kind of policy will cover you. Not only is it more convenient, you’ll only need to arrange it once and it will cost you less in the long run, giving you not just peace of mind, but savings as well.
One holiday or several?
On the other hand, if you only go abroad once a year on an annual holiday, insurance policies covering single trips may be the better choice. Multi-trip insurance is more expensive than single trip travel insurance, of course, and is only practical for those who plan to travel at least three times within the year.
Another situation in which you may only need single trip insurance is if you do fly frequently for business at the company’s expense, but pay out of your own pocket for your own personal flights. Coverage for your business travel will be under the company plan in this case, but you will need to purchase a separate policy for your personal travel.
It makes sense for couples and families
Whether you are traveling as a couple, a family or on your own, there are yearly policies that can save you money if you travel at least three times within a year. In fact, it can be the cheapest option, but make sure you review inclusions.
What if you’re staying longer and travelling around the globe?
There are other things you may want to consider before purchasing the correct policy. If you’re planning staying longer at some destinations (the time period varies depending on insurer and policy), there may be limitations on multi-trip cover. Also, if you plan on taking more than a year to travel the globe, other options like backpackers’ cover may be the better choice.
If you plan on participating in risky activities such as extreme sports like bungee jumping or skydiving, it may invalidate your policy, so you will need to read the terms and conditions carefully.
Yearly multi-trip policies may also not work well if you are undergoing tests that may bring to the surface conditions not present at the time you purchased your policy and invalidate your claim. In this situation, single-trip cover with allowed pre-existing conditions may be better.
With the many different types of travel insurance policies available, there’s one that fits everyone. Just be sure to do your research and make sure you choose correctly.