Travel Insurance: Is It Really Necessary? Essential Checklist Guide
When planning an overseas trip, we think about the excitement and anticipation just as much as the ‘what-if’ scenarios.
Unexpected events like local medical expenses, lost luggage, or trip cancellations can turn into costs and anxiety.
Many people mistakenly assume their domestic insurance applies overseas, only to regret it later.
Therefore, checking whether you have insurance and what it covers before traveling abroad is not optional—it's essential preparation.
1. Preparing for Medical Expenses and Medical Evacuation Costs
Overseas, the applicability of domestic health insurance is limited, potentially leading to significantly higher medical costs. Hospital bills in countries like the US or parts of Europe can be beyond imagination. Medical expense coverage in travel insurance is an essential preparation for covering hospital visits and inpatient treatment costs that may arise in emergencies.
Furthermore, in countries or regions with inadequate medical facilities or standards, situations may arise where medical evacuation to a nearby city, neighboring country, or back to Korea is necessary for proper treatment. This is where medical evacuation coverage comes into play. Accidents can happen to anyone, but the cost of services for proper treatment can be unimaginably high. Therefore, be sure to consider purchasing travel insurance that includes medical evacuation costs.
2. Trip Cancellation/Interruption Coverage
If your trip is interrupted due to unexpected illness, natural disasters, flight delays or cancellations, you may lose reservation fees, accommodation costs, and more.
If your travel insurance provides ‘Cancellation/Interruption Coverage’ in such cases, you can recover significant costs, so carefully consider whether to purchase it.
3. Country-Specific Insurance Requirements and Regulations
Some countries require tourists to provide proof of minimum medical insurance coverage.
If you lack insurance proof upon entry or your coverage amount is insufficient, your visa may be denied, or you could face having to cover all medical expenses yourself.
4. Verify Existing Insurance & Credit Card Coverage
Many assume domestic health insurance or credit card travel insurance covers overseas trips, but coverage is often very limited. Additionally, those on package tours may have insurance provided by the travel agency, but this coverage is also extremely limited in terms of what it covers and the costs it pays. Therefore, depending on the country you are visiting, it is advisable to consider purchasing additional insurance.
Consequently, before purchasing insurance, you must carefully verify “under what conditions coverage applies,” “what exclusions exist,” and “whether high-cost medical expenses and evacuation costs are included.”
5. Assessing Value for Money
Reports indicate travel insurance costs are typically set at around 4 to 8% of total travel expenses.
For short trips or low-cost travel, insurance might feel like an extra burden. However, if risks like hospitalization, evacuation, or trip cancellation are significant, purchasing coverage is a wise precaution. Even countries with excellent medical facilities don't mean you can skip travel insurance. Compare coverage items and costs based on the destination's medical standards and expenses to find appropriate protection.
Overseas travel insurance isn't a simple “must have/can skip” choice.
The key is to balance necessity, coverage details, and cost based on your travel style, destination, existing insurance, and other factors.
In an emergency, the peace of mind from being well-prepared can be more valuable than the anxiety of having no plan.
Therefore, before deciding whether to purchase insurance, be sure to review the points above. A prepared trip leads to a freer journey.
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