Is Your Credit Card's Free Travel Insurance Adequate?
Singaporeans are mature consumers when it comes to credit card usage - you only need to look at the number of credit card comparisons site around to know how popular they are! If you are a frequent traveller, you might already be using a travel credit card to help you accumulate air miles and earn rewards, not to mention enjoy the free travel insurance coverage that comes with it.
But have you actually read through the travel insurance policy provided and compared whether the complimentary insurance is adequate for you? Should you still buy a stand-alone travel insurance if you can enjoy coverage from your credit card? Let’s find out.
Pros and Cons of Credit Card’s Free Travel Insurance
For a start, is the coverage really free? The fact is many credit cards in Singapore offer free waiver of their annual fees, but when it comes to air miles cards, most of them come with a rather high annual fee which is seldom waived unless you are a big spender.
Here are some of the annual fee charges and travel insurance coverage for credit cards that offer free travel insurance:
| Credit cards | Annual Fees | Minimum Income Requirement | Travel insurance coverage (accidental death) |
| Citi PremierMiles Visa Card | S$192.60 | $50,000 | Cardholder: Up to $1M
Family of Cardholder: $1M (Spouse), $50,000 (Child) |
| DBS Altitude Visa Card | S$192.60, waived when you spend at least S$25,000 a year | $30,000 | Cardholder: Up to $1M
Family of Cardholder: $1M (Spouse), $250,000 (Child) |
| Standard Chartered Visa Infinite Card | S$588.60 and no waiver | $150,000 | Cardholder: up to $1M for age up to 69 years old, and up to S$500,000 for aged 70 years old and above |
| UOB PRVI Miles Visa Card | $256.80 | $30,000 | Cardholder: Up to $1M |
| HSBC Visa Infinite | $488 for premier customers, or $650 for non-premier customers | $120,000 | Cardholder: Up to US$2M
Family Member of Cardholder: US$1M (Adult), US$30,000 (Child) |
*Information from various banks’ site. Information correct as at May 2018.
At one glance, you might think that the free travel insurance offers quite a good deal, given that if you are already using the said credit card and is willing to pay the high annual fees. But does that million-dollar figure for accidental death really tell you the whole story?
Of course not.
So we looked into some of the details provided by the policy documents and here’s how they compare:
| Insurance Coverage | DBS Altitude | UOB PRVI Miles | Stanchart Visa Infinite | DirectAsia’s DA1000 family plan |
| Accidental Death/ Total Permanent Disability | Up to $1M for cardholder
Family of Cardholder: $1M (Spouse), $250,000 (Child) |
Up to $1M for cardholder | Cardholder: up to $1M up to 69 years old | Up to $500,000 per adult and child;
$1.25M per family unit |
| Medical Expenses | Not Stated | Not Stated | up to S$50,000 per Insured Person (up to 69 years old) | Up to $1M per adult or child;
$2.5M per family unit |
| Loss of Personal Belongings | Not Stated | up to S$400 per Insured Person | Up to S$5,000 per Insured Person | Up to S$3000 per insured
Up to S$500 per item, pair or set; $7500 per family unit |
| Travel Cancellations and Delay | Not Stated | up to S$200 for 4 hours delay | Not Stated | Travel Cancellations: Up to $25,000 per person, $62,500 per family unit
Travel Delay: up to $2,000 per person, $5,000 per family unit |
*Information from various banks’ site. Information correct as at May 2018.
Looking at the comparison table above, it is pretty obvious that your free travel insurance is not giving you quite a comprehensive protection, given that the coverage listed above are considered the basic requirements of a travel insurance.
Buying a travel insurance is often for giving ourselves a peace of mind when we travel, but with Singaporeans becoming more discerning when it comes to getting the right travel insurance policy, it is worthwhile to spend some time reading through your policy documents to understand what kind of coverage you actually get.
Travel insurance claims relating to socio-political volatility have more than doubled in the last three years and consumers are now more worried about potential travel disruptions. This is why getting the right travel insurance can actually help you save a huge amount, especially when it comes to travelling as a family.
Our newly-enhanced travel insurance now cover your reluctance to travel due to terrorist acts, travel cancellations due to haze, your pet hotel charges if your return travel is delayed and even the option to include your foreign domestic worker on your family plan. Ask for a travel insurance quote now to get your family protected on your next trip!
