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Travel Insurance: Answering Your Most Asked Questions

Be insured when you travel.


Posted on 20 June 2019



Source: Post Office

What is your biggest fear while on vacation? From lost luggage to illness to accidents, you’d have so much to worry about that you begin to question whether you can actually have fun on your trip. Well, if you’re sufficiently insured, you definitely can! Travel insurance has become a necessity because it protects us against our biggest fears while travelling. Basically, you pay for a policy that will last for the duration of your holiday, ensuring that you and your family will receive the care and resources you need when accidents do happen.

However, anyone who has attempted to buy an insurance plan before will know that insurance policies can get pretty confusing when you try to read the fine print. What happens if your beneficiary dies before you? What if you didn’t even name a beneficiary? Where will all the insurance money go? Never fear! This handy guide will answer some of your most frequently asked questions about travel insurance.

What is covered under travel insurance?

Under Packist travel insurance, personal accidents, medical expenses, lost belongings and travel documents, travel delays, as well as trip cancellations are generally covered. Do keep in mind that coverage differs by company and plan, so it’s better to inquire further before buying a plan. In Packist’s case, you can easily find our comprehensive benefit summaries for domestic and outbound travels on our website (just scroll to the bottom of the page).

How much is the insurance payout?

When you are insured with Packist, you can get up to RM500,000 for medical expenses and personal accidents and up to RM30,000 for cancelled trips, depending on the plan you purchase. Individual and family plans differ in their maximum sums.


via GIPHY

Should I put a beneficiary name when buying travel insurance?

In short, if you want your insurance benefit to go to the people you care about upon your death, it is better to name a beneficiary. This is the party that will receive the benefit should you pass away during your trip. If you do not name a particular person as your beneficiary, the default beneficiary would generally be your next-of-kin. However, when you buy travel insurance online at Packist and do not specify a beneficiary, our checkout page will automatically select “estate” as the beneficiary.


Source: Ultimate Estate Planner

What is an estate?

Estate refers to the sum of everything you owned, including property, possessions, and investments. If your travel insurance goes under your estate, any benefit claimed will be transferred to form part of your distributable property. Basically, your insurance proceeds will be used to pay your outstanding personal debts (mortgage, taxes etc.) before they are distributed to your next-of-kin. However, proceeds from your estate could take as long as a year to be distributed and are subject to taxes - taxes you can otherwise avoid if you name a beneficiary in the first place.

What if my beneficiary dies before me?

Yes, this all feels slightly morbid to think about, but sometimes things do happen. If your beneficiary dies before you, your insurance proceeds will go to your estate.

What if my beneficiary dies before me, and I die immediately after without choosing a new beneficiary?

First of all, touch wood. Second of all, when this happens, the state law will find an heir, for example, by referring to your will or by tracing your family tree. If a living heir cannot be found, then the state law will take the remaining assets.

via GIPHY

Now that you know the importance of being insured while travelling, don’t forget to buy travel insurance before you embark on your next holiday. Luckily, Packist is a one-stop shop for all your travel concerns. Not only do we provide premium travel packages around the world, we also offer travel insurance with great coverage - all of which can be purchased online!

 

*Cover Photo Source: Upgraded Points

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