Should I Buy Cruise Insurance? A Guide for Singaporeans

With cruise vacations gaining popularity among Singaporeans, understanding how to protect your investment is crucial. This section explores the ins and outs of cruise insurance, helping you decide if you should buy travel insurance for a cruise.

In an increasingly unpredictable world, relying solely on your personal health insurance or credit card travel protections may leave you vulnerable. While some credit cards, like the Citi PremierMiles Card, offer travel coverage, they may not cover all scenarios. Given these factors, cruise insurance is often a wise investment.

The purpose of cruise insurance is to protect your non-refundable trip costs against unforeseen events. While you might not need to use it, having it provides peace of mind, safeguarding you from potential financial losses. However, it's essential to make an informed decision.

Travel insurance can seem complex, but these tips will help you choose the right coverage.

Understanding the scope of your policy will help you decide if you need cruise insurance and if it has good value for money. Does it cover job loss or family emergencies? Carefully review the policy's terms and conditions, especially the benefits and coverage details.

For instance, is COVID-19 related coverage included? This depends on when you purchased the policy, as pandemics are often excluded. If you bought the policy after COVID-19 was declared a pandemic, related claims might not be covered. While some insurers now include COVID-19 related illnesses, fear of travel is typically not covered.

FInd out more: 10 Tips to buying the right travel insurance for you

Cruise insurance can take up a significant percentage of your total travel cost, so compare options to find the best value. Check with your travel agent or independent sites to compare policies from various providers.

Research can often lead to better benefits at a lower cost, making your cruise travel insurance more worth it. Also, ensure your cruise insurance is "primary" coverage, meaning it pays before your other insurance policies.

Standard cruise insurance policies offer good protection, but come with coverage restrictions. For complete flexibility, consider a "Cancel For Any Reason" (CFAR) add-on. CFAR allows you to cancel your trip for any reason, subject to the policy's cancellation notice requirements (typically two days before departure, but verify your policy).

However, CFAR often comes at a premium. CFAR is an add-on, not a standalone policy. You'll need to purchase a standard travel insurance policy that offers CFAR as an option. Many insurance comparison sites include a CFAR filter in their search tools. Also, you must buy the policy within a specific timeframe after booking your cruise, which varies by insurer.

Find out more: The best travel insurance with flight cancellation

Purchasing your policy soon after booking your cruise may unlock complimentary benefits. For example, some insurers will cover pre-existing conditions if you purchase insurance within a specific timeframe of your initial trip payment. This timeframe also applies to CFAR purchases. 

After this period, you can only buy standard insurance. These restrictions are common, so inquire about them when booking and considering travel insurance.

If you're unsure which travel insurance plan to choose, most plans offer a "free look" period. This allows you time to review the policy and decide if it meets your needs.

Ultimately, a cruise is a significant investment that warrants insurance. Before purchasing, clearly define your needs. While travel agents can provide guidance, independent research is also valuable.

Find a travel credit card tailored to your lifestyle. Here are top picks for 2025:

• Best for basic everyday spending: Standard Chartered Smart Credit Card

• Ideal for big ticket purchases: HSBC Advance Credit Card

• Best for new cardholders with unlimited flat-rate cashback: Citi Cash Back+ Card

• No exclusion cashback: UOB Absolute Cashback Card

• Best for perks & rewards: The American Express Platinum Card®

• Cashback without any cap and no minimum spend: OCBC INFINITY Cashback Credit Card