Is it cheaper to buy family travel insurance?

In many cases, buying family travel insurance can be more cost-effective than purchasing individual policies for each family member. Family travel insurance typically covers two adults and their dependent children under a single policy, often at a lower overall cost compared to buying separate plans for each person. It's a convenient and often more affordable option, especially for families traveling together. However, costs and coverage can vary among insurance providers, so it's essential to compare prices and benefits to ensure the best value for your family's needs.

What is the difference between individual and family deductible for travel insurance?

Individual deductible applies separately to each person covered, while a family deductible covers the total expenses for all included family members together before the insurance coverage begins.

How many people is considered a group for travel insurance?

The definition of a "group" in travel insurance can vary among insurers. Typically, a group is considered to be a minimum of 10 or more individuals traveling together on the same trip. However, this can differ depending on the insurance provider, so it's best to check with the specific insurer regarding their definition of a group and any group-specific policies or discounts they may offer.

Is it cheaper to travel solo or in a group?

Solo travel offers flexibility but may have higher individual costs. Group travel might provide discounts, sharing expenses, but less flexibility in planning. Costs vary based on preferences, destinations, and available discounts.

Traveling as a Group: Family VS Group Travel Insurance

Understand the three key differences between family travel insurance and group travel insurance to help you make the most appropriate choice.

If you’re travelling with a group of friends for your upcoming vacation, then it’s time to find out what are the differences between family travel insurance plans and group travel insurance plans.

In this article, find out about the benefits of group travel insurance and whether group travel insurance is the best plan for you and your buddies.

3 key differences between family travel insurance and group travel insurance

Family travel insurance	Group travel insurance
Covers only immediate family members (i.e., legal spouse and children)	Covers all named individuals
Separate limits for children and adults	All insured individuals enjoy same level of benefits
May offer free child cover	Charged on per-individual basis, but group discount may be offered

#1: Persons covered

The most important difference between family travel insurance and group travel insurance is the persons covered.

As per its name, a family travel insurance plan only covers, well, family members. In most cases, only immediate family – legal spouse, and own children – are included. Some insurers, however, may only require the children to be insured to be related to one adult only.

This also means that extended family members are excluded from family travel insurance plans. So, if you’re travelling with your grandparents, uncles and aunties, cousins, etc, they will require their own travel insurance policy.

What about domestic helpers? Well, some insurers may offer free coverage for domestic helpers accompanying the family during the trip. If your chosen insurer does not offer this, a separate plan will need to be acquired for your helper.

In contrast, a group insurance policy doesn't require any of the insured individuals to be related in any way whatsoever. They only need to be named, and fulfil the eligibility criteria – commonly, age and nationality.

#2: Claims limits

It is common for family travel insurance plans to have different claims limits for adults and children, with the latter covered only for a portion of the sums assured provided to insured adults.

Not only that, family travel insurance usually institutes an overall cap per family, which adds up to a lower sum than the individual benefits combined.

For instance, a policy may offer personal accident coverage of S$10,000 per adult, and S$5,000 per child, with an overall cap of S$25,000 per family. This means that the policy essentially only offers full cover to two adults and one child, putting larger families at a disadvantage.

Of course, travel insurance benefits aren’t meant to be split up like a chicken dinner. However, per-family limits can make it such that the benefits you do receive are insufficient for your needs.

In contrast, group insurance plans do not have this limitation. All insured persons will have their own individual benefits and limits.

This may be a more attractive option for some, so you should forego family plans and just sign everyone up for a group plan instead, right?

Afterall, some group plans require a minimum age of 16, while family plans cover children up to age 18 or 23, for full-time students. This means you should be able to enrol your 17-year-old under a group policy – and thus gain full cover – correct?

Well, maybe. It is up to your insurer to decide if they will insure you and your immediate family under a group travel plan, instead of a family plan.

Also, if your children do not meet the minimum qualifying age for a group plan, then you’ll have no choice but to go with a family plan instead.

#3: Premiums charged

A prominent selling point of a family plan is that children are included for a lower cost, or sometimes completely for free. The idea is to let parents feel like they are getting good value for money.

Group travel plans, in comparison, are charged on a per-individual basis, with the premium carefully calculated to cover the cost of insurance across all individuals in the policy. Another common practice is to offer a discount on single-traveller plans if multiple travellers sign up together.

While both of these marketing tactics may seem different, they don’t actually matter very much in the grand scheme of things.

What’s more important is getting sufficient coverage for every traveller, and benefits that are actually useful and necessary, at a reasonable premium.

Conclusion: Should you choose family travel insurance or group family insurance?

At the end of the day, choosing between a family travel plan or a group travel plan really boils down to who you’re travelling with.

For parents travelling with their children, they may invariably only be able to choose family plans, due to age constraints or the requirements of the insurer.

For those travelling with extended family members, there may be a choice between multiple family plans (one for each nuclear family), or an overall group policy that includes everyone.

Friends, co-workers and acquaintances will most likely only qualify for group travel policies. But that’s not a disadvantage at all. Sure, premiums may be slightly higher, but each individual will have full coverage.

Compare Best Travel Insurance

Is it cheaper to buy family travel insurance?: In many cases, buying family travel insurance can be more cost-effective than purchasing individual policies for each family member. Family travel insurance typically covers two adults and their dependent children under a single policy, often at a lower overall cost compared to buying separate plans for each person. It's a convenient and often more affordable option, especially for families traveling together. However, costs and coverage can vary among insurance providers, so it's essential to compare prices and benefits to ensure the best value for your family's needs.
What is the difference between individual and family deductible for travel insurance?: Individual deductible applies separately to each person covered, while a family deductible covers the total expenses for all included family members together before the insurance coverage begins.
How many people is considered a group for travel insurance?: The definition of a "group" in travel insurance can vary among insurers. Typically, a group is considered to be a minimum of 10 or more individuals traveling together on the same trip. However, this can differ depending on the insurance provider, so it's best to check with the specific insurer regarding their definition of a group and any group-specific policies or discounts they may offer.
Is it cheaper to travel solo or in a group?: Solo travel offers flexibility but may have higher individual costs. Group travel might provide discounts, sharing expenses, but less flexibility in planning. Costs vary based on preferences, destinations, and available discounts.

Group Travel Insurance vs Family Travel Insurance – Which One is Right For You?

Alevin K Chan

Understand the three key differences between family travel insurance and group travel insurance to help you make the most appropriate choice.