We know you’re thinking, “Should I get insurance or should I not?” Buying insurance and never using it will make you feel like it was a waste of money. But, not having insurance could put you in a tough situation, financially and physically.
This is what is called weighing your risks, resulting in taking a blind risk (not good) or a well-thought out one (good).
The purpose of insurance is to cover travel and/or health risks, in order to lower your financial burden in the event an issue happens.
When the risk is obvious and predictable, then the costs were “worth it”. When the risk is less obvious and less predictable, paying the cost becomes harder to justify, “Do I really need it?”.
In either case, you should think through your health condition (for health insurance) and all of the activities that you’ll participate in while abroad (for travel insurance). This will present a more clear picture if insurance, and what kind of insurance, is right for you.
Cost vs Benefit
Insurance is not free, and you cannot predict the future. All you can do is assess your risk, and make a choice based on what you will be doing (scuba, theft, etc)
Insurance coverage is based on hypothetical “what ifs”. People with obvious needs (pre-existing conditions, expensive gear they want to protect, etc.) will be definitive candidates that consider travel, health, and motorcycle insurance. For them, the risk is more likely and less hypothetical. It is clear that higher risk is associated with these obvious needs and thus, insurance is beneficial.
Define your “what ifs”:
– Comfort Level
How comfort do you feel being in a foreign environment? Are you participating in a new sport or activity that will push you physically?
– Activities
High risk activities include scooter riding without a license (this is the #1 cause), or any activity in which you could get lost, die, or severely injured. Seeking a little adrenalin rush is typically followed by a risky activity. If you are not athletic and participating in risky athletic activities, then insurance is for you.
– Equipment & Gear Cost
Expensive cameras, a laptop, jewelry, or whatever expensive items you bring along should be backed with travel insurance. If you can, leave expensive items at home or somewhere safe – prevent them from being stolen/lost.
Tip
Be sure to document everything in your bag. Make a list and take pictures, so that if you loose it you have that documentation ready to submit for the travel insurance claim. Keep in mind that claims have a max payout, so understand how much that is for your plan.
– Health Condition
Consider your current health condition. Also consider your individual health risk due to age, physical vulnerabilities, athletic ability, etc.
– Food Allergies
Similar to “Health Condition”, above, food allergies can be a real bugger. Foreign countries have different bacterias, and Southeast Asia is infamous for lower hygiene standards. If you have food and environmental vulnerabilities, then try to foresee the type of care you need and bringing an Epi-Pen.
– Lifestyle Choices (Partying-related)
Beware of lifestyle choices that lead to higher risk situations and health risks. This includes drunk motorbike riding, inebriated adventures, recreational alcohol & drug usage, and intoxicated environments that can lead to cloudy decision making. If you delve into these risky behaviors, insurance is a good friend to have.
Is it worth the cost to you? More specifically, is covering your risk (and potential risk) with insurance worth the financial cost?
Great Idea!
You don’t have to pay for travel insurance for the entire trip.
You could simply buy insurance for the 1st half of your trip, for example. This gets you through the long international flight and uncertainties of a new environment. It allows you to get settled and in the groove of things, and get adjusted. You’ll only be covered during the period of time that you purchased, but at least you strike a balance of cost and covering risk by having the insurance during the beginning.
Even better, purchase insurance for the first 1/2 of your trip and extend it as needed. This helps save you money, but also gives you flexibility.
Why Get Insurance
First, focus on PREVENTION! For traveling, there are good practices to prevent theft, and how to be safe when riding a motorbike.
Insurance is for things that you cannot prevent, or after bad situation has occurred. Having insurance is not some protective magical shield! Overall, insurance may or may not be needed – it’s hard to tell.
Coverage For Travel & Health
Travel insurance can be broad and comprehensive, covering health issues and travel-related mishaps. Travel insurance is global, while health insurance is usually local. That is to say that travel insurance takes care of you when you are outside your country, and healthcare insurance is for in-country use. International health insurance exists, but can be much more expensive. Local health insurance plans also exists. For expats and retirees, it might be a smart idea to have a local insurance and insurance from your home country, both?
Medications
Medications and healthcare services in Southeast Asia often “cheap” and do not require a doctor’s prescription or even insurance to assist with the cost – they can be paid directly out of pocket. The healthcare is significantly less capitalistic and corporate compared to the United States Of America, which is a nightmare of co-payments, denial of coverage, and red tape bureaucracy. However, we have heard that some Western-branded medications can cost the same in Southeast Asia as they do in the USA. So, consider insurance for that reason.
Self-Insuring
Ever think about self-insuring? Not everyone thinks of this as an option, but it certainly is! Depending on your needs, self-insuring could be a good option for you. In this case, you will need to set a budget and allocate funds to healthcare needs. Let’s say, $40/month, maybe $60/month? It’s up to you to set a price, really. Instead of paying for travel insurance, you could set that money aside if something happens. Insurance is a “if you don’t use it (insurance), you loose it (money)” type of deal.
Prevention – Lower You Risk
Focus on prevention – it will lead to the best outcomes. Insurance is for when bad things happen, but it does not prevent anything.
Prevent mishaps! Reduce your travel risks! GemsOfTravel has several posts on safety & security – those would be a great place to start! Seriously! GemsOfTravel is dedicated to providing quality and original information. We are not being self-promoting here, we simply desire that you benefit from our experience and knowledge.
MUST Reads
> Safety in Southeast Asia – is it safe? (YES + PLAN for risks)
> Wallet Pouch NOT Waste Pack (Secure > Concealed > Waterproof)
> Tether your Phone – prevent Dropping It & Theft (SECURITY)!
> Motorbike Riding Safety in SE Asia [a MASTER GUIDE]
> Gear Security = Lock + Tether! Lock-up Your Things
> Cash & Bank Cards: Security BEST PRACTICES living abroad
> Plan yo’ Travel Days: Smart + Secure while transiting
> Health Issues from Food and Environmental (+ prevention)
Extra Reads When You Have Time
> Phone & Computer Security [ESSENTIALS for Travel | Nomads]
> Lost/Stolen Phone – PREVENT | Backup | What to do
Be safe. It’s easier said than done, we know. Southeast Asia, and the rules & laws, can be lax. It is easy to mistake this as ‘no rules must mean that it’s safe’, which is not necessarily the case!
Being excited and caught up in the moment is fuel for lowering our guard and opening the door to risky situations.
We’re not telling you to be like bubble boy (living within an inflated bubble to protect him against the risky outside world). We are suggesting, however, that anything you do you ask yourself, “Is this risky? What could go wrong? How should I prepare to be safe and secure?”.
When Things Go Bad
We’re telling you, people get into countless boondoggles while in Southeast Asia.
Falling off a water fall, horrific scooter accidents, drug overdoses, and methanol poisoning due to fake hard alcohol… the list is long. People die, and their bodies have to get flown home (repatriated).
Countless GoFundMe requests have been – and continue to be – posted online seeking funds for emergencies that the individual did not plan for. It’s real. It happens. It could happen to anyone.
GemsOfTravel is not trying to scare you, it’s simply the sad reality of many. All you have to do is search online for accidents in Thailand, Laos, Cambodia, and others.