[Insurance Tips]⑭Overseas Trip After 3 Years...Traveler's Insurance Is Essential

[Asia Economy Reporter Changhwan Lee] # Seo Jihee (36), an office worker living in Seoul, is contemplating whether to purchase travel insurance ahead of her postponed overseas trip due to COVID-19. Ms. Park considered traveling without insurance since it is a short 2-night, 3-day trip and she doubted anything serious would happen. However, after receiving advice from those around her that it is essential to have travel insurance when going abroad, she changed her mind and is now looking into insurance products.

Demand for overseas travel, which sharply declined due to the COVID-19 pandemic, is now recovering in earnest. According to the Korea Tourism Organization, 773,480 Koreans traveled abroad last month, a 521.8% increase compared to the same month last year.

As more people travel overseas, interest in travel insurance is also growing. Travel insurance compensates for damages caused by various illnesses or accidents during travel or business trips.

Travel insurance provides coverage similar to indemnity insurance, reimbursing medical expenses incurred due to injury or illness while traveling, up to a certain limit.

In foreign countries, unlike Korea where the national health insurance system is well established, hospital bills can be exorbitant beyond imagination, and travel insurance covers such risks. Since the premium is usually affordable, around 10,000 KRW, it is highly recommended for those traveling abroad to purchase it.

Last October, the arrival hall at Incheon Airport was crowded with tourists and incoming passengers. / Yeongjongdo - Photo by Jinhyung Kang aymsdream@

When purchasing travel insurance, one should consider the coverage period, coverage amount, and coverage scope. The coverage period refers to the entire duration of the overseas trip, and the coverage amount can range from tens of millions to hundreds of millions of KRW in case of death, depending on the insurance plan.

The coverage scope can be expanded by paying additional fees for special clauses offered by each insurer. Typical examples include special clauses for living expenses support in case of quarantine due to COVID-19 abroad, or coverage for damage to personal belongings (excluding loss). If you already have indemnity insurance, you can exclude the domestic treatment coverage item that covers medical expenses incurred at domestic hospitals.

Travel insurance can be purchased through various channels. First, using direct insurance operated by each insurer is a cost-effective way to subscribe. Direct insurance is purchased online without going through insurance agents, so the premium does not include agent commissions.

However, while direct insurance is cheaper, the policyholder must input the necessary contract details themselves, which can be cumbersome, and premiums may vary between insurance companies. To avoid the inconvenience of visiting each insurer’s website individually, it is also good to use 'Boheom Damoa,' an online insurance supermarket jointly operated by the General Insurance Association and the Life Insurance Association.

When traveling with a package tour from a travel agency, the agency may provide group insurance. Group insurance from travel agencies has the advantage of being inexpensive, but the compensation limits may be low and coverage scope narrow. It is advisable to check this once, and if the coverage is insufficient, consider purchasing individual insurance. Also, if you use a local hospital due to an unexpected accident during the trip, remember to keep all proof documents for insurance claims.

This content was produced with the assistance of AI translation services.