Here are four real-life cases from Tenet Sompo to show how travel insurance can help. The premiums quoted here are based on the more popular standard travel plans. No real names were used.
Scenario 1 - Before the trip
Two friends - Mr Michael Lim and Mr Peter Ho, both 25 - prepared for a vacation in Japan in February. They bought their travel insurance five months before the trip.
Unfortunately, Mr Ho's father fell critically ill a day before their departure and had to be admitted into intensive care at a hospital. As a result, the two friends cancelled their vacation.
The tour package cost for them was $11,600 ($5,800 each) and the travel agency's cancellation policy was 100 per cent non-refundable on the tour cost.
Individual plan premium (nine days): $60 to $75
Coverage: Pays non-refundable travel costs up to $6,000
Claims paid: $11,600
Scenario 2 - During the trip
Ms Anna Tan, 35, was holidaying in Scotland when she injured her knee. She visited a local hospital and an X-ray showed that she had fractured the bottom part of the thigh bone connecting to the knee.
A simple operation was required to immobilise the fracture and further surgery was needed to fix it. She was also required to go through a prolonged period of rehabilitation after surgery.
Ms Lim was repatriated to Singapore for further treatment. She was deemed medically fit to travel on commercial aircraft on a stretcher with two nurse escorts, with direct admission to a hospital in Singapore.
Individual plan premium (13 days): $100 to $110
Coverage: Overseas medical expenses up to $300,000; overseas hospitalisation allowance up to $20,000; evacuation/ repatriation from $500,000 to unlimited; hospitalisation allowance in Singapore up to $100 per day; medical expenses on return to Singapore up to $15,000
Claims paid: Overseas medical costs of US$50,000 (S$70,500); overseas hospitalisation income of $1,000; evacuation/repatriation: US$75,000
Scenario 3 - During the trip
Mr Bob Loh, his wife and two children were in Europe when his wife's sling bag was snatched. She was pushed to the ground. While not injured, she lost her personal effects such as a mobile phone, tablet and wallet as well as the family's passports. The cash lost included €4,000 (S$6,000), £3,500 (S$7,500) and $500.
Family plan premium (11 days): $240 to $250
Coverage: Loss of personal effects up to $8,000; replacement of passport up to $3,000; loss of money up to $500; trip curtailment up to $6,000
Claims paid: Sling bag with contents of $1,500; cash capped at $500; temporary travel documents and replacement of passports of $550; additional costs incurred for travel arrangement of $2,000
Scenario 4 - After the trip
Ms Marriane Poh, 50, was at Melbourne airport and was looking forward to returning to Singapore after a five-day business trip.
She ate some oysters at a restaurant, which turned out to be a bad idea. During the flight, she broke out in cold sweat, had diarrhoea and vomited. She had to be rushed to hospital upon landing. Individual plan premium (five days): $45 to $60
Coverage: Medical expenses on return to Singapore up to $15,000
Claim paid: Medical expenses on return to Singapore, including follow-up treatment: $350