This article was contributed to us by Insurance Market.
Travelling as a family can be great fun. But at the same time, it can also be filled with travel anxieties. What happens if an accident happen during the holiday? Or if a natural disaster leaves our family stranded overseas for a few additional unplanned days. Thus, in order to enjoy your family travel, it’s important to be able to have a peace of mind as parents. One of the best ways to achieve this peace of mind would be to get the right travel insurance policy.
And when it comes to travelling as a family, buying a family travel insurance plan would be the most cost-effective option.
What Is A Family Travel Insurance Plan?
You might not have heard of family travel insurance before, but there’s really not much difference between family travel insurance and individual travel insurance. A family travel insurance insures multiple individuals who are from the same family. It provides insurance coverage for 2 adults (age 18 or 21 and above) and comes with the option of insuring your children (age below 16 or 18, depending on the insurer), if any.
Why Is It Cheaper To Purchase Family Travel Insurance Plans?
Compared to buying multiple individual travel insurance plans, a family travel insurance plan typically comes at a lower cost. Here’s why.
# 1 Lower Cost For Insurers To Process Your Family Travel Insurance Application
From an insurance company’s perspective, processing each individual travel insurance application comes at a fixed cost to administer. When you apply for a family travel insurance, you are essentially applying for two (or more) people at a go.
Instead of having to process multiple individual travel insurance application, the insurance company only needs to process a single application for the whole family. This translates to a lower cost of processing for the travel insurance application, which allows the insurer to offer their travel insurance at a cheaper rate.
# 2 The Positive Effect Of Risk Pooling
The whole concept of insurance is governed by the key idea of risk pooling. Insurance companies recognises that individuals within a group carries varying amount of risks. When you purchase travel insurance as a family, your risks are pooled together.
Here’s an example to illustrate the effect of risk pooling. Personal accident coverage is a very common coverage in travel insurance. Every travel insurance policy will include this coverage. As a family, you might think that the personal accident risk of insuring four lives are the same. However, from the insurer’s point of view, the risk of a child being involved in personal accident is much lower than an adult. This creates a positive effect by pooling together different risks.
Also, as a family, you will be travelling together most of the time. The risk of anyone (in your group of four) getting into some kind of trouble (e.g. accident) is going to be lower as compared to four individuals who are going to be travelling separately, and who have separate travel itinerary.
Thus, because of the positive effect of risk pooling, the cost of insuring a family is typically lower than insuring multiple individual lives.
#3 The Non-Tangible Benefit Of Managing Less Travel Insurance Policies
When you get a family travel insurance plan, it comes with a non-tangible benefit of less hassle. Travel insurance plans are usually managed by a single person within a family. This job usually falls to either of the parents.
Can you imagine how troublesome it is for one person to fill in four application forms? Furthermore, a family travel insurance will come with only one policy document to safekeep, unlike individual travel insurance where you have one policy document for each person. Sometimes, we might just leave out one policy document among the rest in the midst of preparing for the holiday. The last thing you want on a holiday is to have bought a travel insurance and left it in your home when you need it.
Family Travel Insurance Plan Makes Sense For Families
For families that are looking to travel together, a family travel insurance plan makes perfect sense, both from a cost perspective and convenience perspective.
At Insurance Market, we are able to help you compare 35 plans offered by 12 different insurers. Whether it’s a sole backpacking trip for yourself, or a road trip with the entire family, we can help you find the best travel insurance plans based on your personalised requirements. You can also tailor your requirements to ensure that your travel insurance plans include pregnancy related expenses, rental car excess coverage or even sports equipment coverage. Once you have selected the plan you want, you can also buy it online through Insurance Market.