Definition
The maximum amount a travel insurance policy will pay, usually stated in US dollars or euros on overseas plans. Medical cover is the headline figure; baggage, delay and cancellation have their own, much smaller limits.
How much sum insured do you need?
Medical costs vary hugely by destination, and that should decide your cover.
| Destination | Sensible medical sum insured |
|---|---|
| Southeast Asia, Dubai | USD 50,000–100,000 |
| Europe (Schengen) | At least €30,000 for the visa; USD 100,000 is more realistic |
| USA, Canada | USD 250,000–500,000 |
A few nights in a US hospital can run into tens of thousands of dollars, so a USD 50,000 policy that is fine for Bangkok is thin for New York.
Read the sub-limits
The headline figure is not one pot for everything. A policy with USD 100,000 medical cover may carry separate, smaller limits for:
- emergency dental treatment
- baggage loss
- trip delay
- trip cancellation
Policies for travellers over 60 or 70 may also cap room rent or particular treatments.
Example
A Chennai couple in their late 60s visiting their daughter in New Jersey for three months buys a USD 250,000 policy. The premium is far higher than a Europe policy, but a single cardiac emergency in the US could exhaust USD 50,000 in days. They also check pre-existing disease cover for the father's diabetes.
Practical advice
- Choose the sum insured by destination, not by premium.
- Check whether it is per person or shared across a family floater.
- Check the deductible and whether the insurer offers cashless treatment abroad.
- For Schengen visas, the policy must meet the Schengen insurance rules.
Compare plans through our travel insurance service.