Regardless of whether you're embarking on a family adventure, a romantic escape, or a solitary expedition to your desired location, one essential element of your journey demands attention: travel insurance.
When acquiring travel insurance, numerous factors warrant consideration, with a key one being comprehending the breadth of coverage for your trip. It's beneficial to grasp the extent of coverage at each phase of your journey, encompassing trip cancellation, postponement, and flight delays.
In this guide, we’ll dive deeper into important aspects of trip cancellation coverage benefits, the exclusions to note and what is available out there.
What Are Usually Included In Trip Cancellation Coverage?
Although trip cancellation claim benefits vary among insurers, there are several commonly recognised reasons that most travel insurance companies will cover. Death or severe illness/injury affecting you, your spouse, child, or traveling companion ranks among the most universally accepted reasons for trip cancellation claims, covered by all insurers.
Other commonly accepted reasons which you or your travel companion can claim for include:
- Medical emergencies such as you and/or your travel companion experiences a “flare-up” of a pre-existing medical condition, are deemed unfit to travel due to injury or illness, or if a family member encounters a life-threatening medical situation, right before your trip or during your trip.
- Residential home damaged by a fire, storm, flood or other natural disasters.
- Flight cancellation by the airline due to adverse weather conditions, closure of airways, airports or runways.
- Legal obligations whereby you're called to be a witness in court during your travel dates.
How Does 'Cancel For Any Reason' Work?
Certain travel insurance plans provide a "cancel for any reason" (CFAR) benefit which can be an add-on feature that comes with additional pricetag on top of the price of your base plan, but enabling you to cancel your trip for any cause, regardless of whether it's specified in the policy.
At the moment, only a few travel insurance providers in Singapore include this benefit of CFAR in their trip cancellation coverage and they include FWD, Singlife, AIG, and AXA.
Wider extent of coverage for trip cancellation
Thus, you gain the flexibility to cancel, delay, or abbreviate your journey for nearly any reason, including those typically excluded under standard cancellation coverage. Below are examples of reasons that this comprehensive add-on will usually accept:
- Missing your flight due to a traffic jam
- Cancellation of a concert at your destination
- Overlapping reservist training with your trip
- Attending to a sick pet requiring close supervision
- Unexpected work obligations
- Delay in visa processing
- Any other reasons not covered in the basic plan
Important terms and conditions to note
- Opting for the CFAR coverage usually entails extra expenses and may result in a smaller reimbursem*nt percentage for your trip expenses compared to claims made for covered reasons.
- For most travel insurance claims, whatever the reason is for cancelling your trip, the reason must occur within a certain period of time for most policies. For example, some require it to take place within 30 days before your departure date, while others might offer coverage for events occurring even further in advance.
- Some plans with CFAR coverage like those provided by Singlife have a maximum amount payable per insured per trip, and are limited to only higher tier plans such as the Singlife Plus and Singlife Prestige.
- Usually, the CFAR coverage must also be purchased within a specified number of days of the initial trip deposit. For example, AIG’s TravelGuard plans that come with the CFAR coverage needs to be bought within 15 days of the initial trip deposit.
- The request for the trip cancellation must be submitted/the trip must be cancelled more than a certain number of hours or days prior to the scheduled departure. For instance, AXA’s travel insurance CFAR coverage requires you to cancel your entire trip 2 days or more before your scheduled departure date.
- The full cost of all non-refundable, prepaid trip arrangements may be insured at the time of purchase.
Find affordable travel insurance plans in Singapore
Common Exclusions Of Trip Cancellation Coverage In Travel Insurance
Although most travel insurance with CFAR provides coverage for a wider range of unexpected situations that extends beyond the usual list of covered events, most of them still share common exclusions. Below are some examples which are often excluded in travel insurance policies with CFAR coverage.
- Cancellations due to a change of mind or travel plans: The reason for cancellation must be unforeseen and meet the criteria outlined in the policy.
- High-risk activities: Engaging in high-risk activities such as extreme sports or adventure activities especially those with involvement at a professional or competitive level may not be covered under CFAR policies. Each policy may have its list of excluded activities, so it's essential to review the terms carefully.
- Cancellation due to financial default of a travel supplier: CFAR coverage may not reimburse you if your trip is canceled due to the financial default of a travel supplier, such as an airline or tour operator, unless specifically included in the policy.
- Travel warnings or advisories: If the cancellation is due to travel warnings or advisories issued by government authorities or public agencies, it may not be covered under CFAR policies.
- Pre-existing conditions: Many CFAR policies exclude coverage for pre-existing medical conditions unless specified otherwise. This means that if you have a medical condition that existed before purchasing the insurance, any related cancellations may not be covered.
Best Travel Insurance With “Cancel For Any Reason” Coverage
MoneySmart Exclusive
FREE FLIGHTS | New Trip Cancellation Add-on
MoneySmart Exclusive
FREE FLIGHTS | New Trip Cancellation Add-on
- Med. Coverage (Overseas)
- S$1,000,000
- Trip Cancellation
- S$15,000
- Loss/Damage of Baggage
- S$7,500
- Total Premium
Total Premium
S$32.8335% Off - S$21.34
[| MoneySmart Exclusive]
• Enjoy up to 35%off your policy premium
• Get S$20 iShopChangi e-voucherand Eskimo Global 1GB eSIM with every policy purchased. T&Cs apply.
BONUS:
For a limited time only, there are overS$11,000 worth of prizesto be given away in our Grand Draw.
Stand a chance to score:
• 1xRolex Oyster Perpetual - 124200 34mm Silver (worth S$9,000)
• 1xSamsonite Robez 68/25 EXP(worth S$550) weekly
Increase your chances of winning when you refer friendstoday. T&Cs apply
Valid until 31 May 2024
MoneySmart Exclusive
Free Trip Cancellation
MoneySmart Exclusive
Free Trip Cancellation
- Med. Coverage (Overseas)
- S$2,000,000
- Trip Cancellation
- S$15,000
- Loss/Damage of Baggage
- S$5,000
- Total Premium
Total Premium
S$43.3725% Off - S$32.53
[Receive your cash as fast as 30 days*]
• Enjoy 25% off your policy premium
• Get an Eskimo Global 1GB eSIM with every policy purchased.
• Additionally, receive up to S$30via PayNow and up to S$20 iShopChangi e-voucher with eligible premiums spent.T&Cs apply.
Valid until 31 May 2024
MoneySmart Exclusive
FREE FLIGHTS | Most Flexible Plan
MoneySmart Exclusive
FREE FLIGHTS | Most Flexible Plan
- Overseas Medical Expenses
- S$2,500,000
- Travel Cancelation / Postponement
- S$15,000
- Loss/Damage of Personal Baggage
- S$10,000
- Premium
- S$77
[Receive your cash as fast as 30 days*]
• Get up to S$220 worth of cash and rewards with eligible premiums spent.
• Additionally, receive an Eskimo Global 1GB eSIM with every policy purchased.T&Cs apply.
Valid until 31 May 2024
MoneySmart Exclusive
FREE FLIGHTS | Best Value Plan
MoneySmart Exclusive
FREE FLIGHTS | Best Value Plan
- Med. Coverage (Overseas)
- S$1,000,000
- Trip Cancellation
- S$15,000
- Loss/Damage of Baggage
- S$7,500
- Total Premium
Total Premium
S$60.8450% Off - S$30.42
[| FLASH DEAL]
• Enjoy 50% off your policy premium
• Get an Eskimo Global 1GB eSIM with every policy purchased.
• Additionally, receive up to S$50 via PayNow OR 1 x Apple AirTag (worth S$45.40) and up to S$20 iShopChangi e-voucher with eligible premiums spent.T&Cs apply.
BONUS:
For a limited time only, there are overS$11,000 worth of prizesto be given away in our Grand Draw.
Stand a chance to score:
• 1xRolex Oyster Perpetual - 124200 34mm Silver (worth S$9,000)
• 1xSamsonite Robez 68/25 EXP(worth S$550) weekly
Increase your chances of winning when you refer friendstoday. T&Cs apply
Valid until 31 May 2024
Frequently Asked Questions
Should I get travel insurance with ‘cancel for any reason’ coverage?
- Yes and no, this depends on your risk tolerance level when you travel. If you're seeking greater coverage for a wider range of unexpected situations, travel insurance with a ‘cancel for any reason’ coverage will benefit you as it extends beyond the usual list of covered events.
What are usually covered in travel insurance with ‘cancel for any reason’ coverage?
- The usual exclusions include:
- Travel warnings or advisories issued by government authorities or public agencies.
- Engaging in high-risk activities such as extreme sports or adventure activities may not be covered under CFAR policies.
- Pre-existing medical conditions which refer to medical conditions that existed before purchasing the insurance. Any related cancellations may not be covered, depending on the terms and conditions of the policy purchased.
- Unforeseen circ*mstances which may not be covered if they are not explicitly mentioned in the policy.
- Cancellations due to a change of mind or travel plans. The reason for cancellation must be unforeseen and meet the criteria outlined in the policy.
