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Travel insurance is sold with fear and skipped with bravado, and both approaches are wrong. The truth is straightforward: some coverage is genuinely important, some is a waste of money, and the difference is not complicated once someone lays it out straight. Here is the straight version, without the fear and without the slogans.

First: which of these two are you?

  • A trip. You have a home base, you're going away for days or weeks, and you'll come back. You want trip insurance — a one-off policy for that trip.
  • A life abroad. You're away for months, moving between countries, or you've stopped having a home country in the normal sense. You want nomad health insurance — a monthly subscription that covers you continuously.

These are different products sold by different companies. Buying the wrong one is the single most common mistake in this category, and you usually find out at the worst possible moment.

Not financial or insurance advice What follows is a framework for thinking about travel insurance, not a recommendation of any specific policy. Read the actual policy document before you buy, particularly the exclusions. They are where the important information lives.

Tom broke his ankle on day three

A wet step on a Balinese scooter, a clean break, and a hospital that wanted payment before treatment. The surgery and the two nights were manageable. What was not manageable was the medically-supervised flight home in a seat he could not bend into, arranged at short notice.

The evacuation cost several times the surgery. That single line item is what travel insurance is actually for — and it is the one most people never think about when they skip it.

The coverage that actually matters

Emergency medical and evacuation

This is the serious one. Your domestic health insurance almost certainly does not cover you abroad, and medical care in a foreign country — especially emergency care, hospitalisation, or evacuation — can reach costs that are genuinely life-altering without coverage.

Evacuation is the line item most people overlook. A medical evacuation flight can cost more than a new car. If you are trekking in Nepal, diving in remote Indonesia, or anywhere significantly distant from a major hospital, evacuation coverage is not optional. It is the main reason travel insurance exists.

Trip cancellation for genuine emergencies

The covered reasons are usually narrow — serious illness or death of you or a close family member, jury duty, a few others — and they exclude the most common reasons people actually cancel trips. Read the covered reasons list, not the marketing copy. “Cancel for any reason” coverage exists and costs more; it is worth considering if your plans are genuinely uncertain.

The coverage that is usually not worth paying for

What changes the calculation

SituationInsurance priority
Developing countries, remote areasMedical + evacuation: essential
Adventure activities: trekking, diving, skiingCheck whether standard medical covers these; many policies exclude them unless stated
Pre-existing medical conditionsCrucial to declare; a policy that excludes your condition is not useful when you need it
Expensive pre-paid tripTrip cancellation worth considering if costs are significant and largely non-refundable
Short city trip, flexible ticketsMedical only is often enough
Annual multi-trip policyOften better value than per-trip policies for frequent travelers

The pre-existing conditions issue

This is where most travel insurance claims fail. A pre-existing condition that is not declared is usually not covered. A condition that is declared may be excluded entirely, or covered at an additional premium, or covered fully — but you need to know which before you buy, not after you make a claim.

Read the definition of “pre-existing condition” in the specific policy. It is usually broader than you expect. Some policies look back six months; some look back years. If you have any ongoing medical situation, this section requires careful reading.

Adventure and high-risk activities

Standard travel insurance policies typically exclude injuries sustained during activities classified as high-risk: skiing, scuba diving, trekking above certain altitudes, motorcycling, and others. If you are planning any of these, you need a policy that explicitly includes them — or an add-on that does. The exclusion is in the small print and is enforced.

If you are trekking in Nepal, the specific question to ask is whether the policy covers helicopter evacuation at altitude, and up to what elevation. These numbers vary by policy and matter in practice.

The one question that matters most If the worst thing that could plausibly happen on this trip actually happened, would this policy cover it? If the answer is yes, buy it. If the answer is no or maybe, read the exclusions again.

If you actually live abroad: nomad health insurance

Everything above assumes a trip with a return date. If you're spending months away, moving between countries, or living abroad without a fixed base, trip insurance is the wrong product — most policies cap the trip length at somewhere between 30 and 90 days, and a claim on day 100 of a “60-day” policy is a claim that gets denied.

What you want instead is a subscription health policy built for long-stay travelers. The shape is different in three ways that matter:

The best-known options in this category are SafetyWing, Genki and Insured Nomads. They differ mainly in price, home-country coverage, and how they handle longer-term or more serious care.

What these policies typically do not cover well

The honest limitation of the whole category

Nomad health insurance is cheaper than domestic health insurance in most Western countries, and that price reflects narrower cover. It is not a replacement for real health insurance if you have ongoing medical needs. It is very good at the thing it's designed for: you get hit by a scooter in Thailand and need a hospital.

If you have a chronic condition, take regular medication, or expect to need consistent care, talk to an insurance broker who handles expatriate policies rather than buying a nomad subscription online and hoping.

If you go with SafetyWing: Essential or Complete?

SafetyWing is the one most long-stay travelers land on, and it sells two plans that are genuinely different products rather than two price points. Picking the wrong one is the most common mistake people make with it.

The honest rule of thumb: if you have a return date and health cover waiting for you at home, Essential is the right product. If you are living abroad indefinitely and this is now your actual health insurance, Complete is the one that behaves like it.

Neither covers pre-existing conditions you already have, and both exclude a handful of sanctioned countries. Cover in the US, Singapore and Hong Kong costs extra. Read the current policy wording before you buy — insurance terms move, and this page will not.

THE PLAN FOR A TRIP WITH A RETURN DATE

SafetyWing Nomad Essential

Travel medical cover for trips of a few days up to just under a year. Renews every four weeks, cancel any time, and you can start it when you are already abroad.

See Nomad Essential →
THE PLAN FOR ACTUALLY LIVING ABROAD

SafetyWing Nomad Complete

Comprehensive health insurance with travel cover on top — routine care, ongoing treatment for new conditions, and full coverage at home.

See Nomad Complete →

When to buy it

As soon as you book, not close to departure. Some of the most valuable coverage — trip cancellation due to illness or a travel advisory change — only applies to events that occur after the purchase date. Buying the day before you leave means you have missed most of what makes trip cancellation coverage useful.

Where to buy it

Comparison sites let you see multiple policies against each other. The airline’s own insurance at checkout is almost never the best option. Your existing credit card may already include some coverage — check this first, because you may already have more than you think.

Annual multi-trip policies are worth calculating if you travel more than twice a year. The maths usually favours them quickly.

Before you spend money on coverage

The gear that prevents the claim

The best travel insurance outcome is the one where you never make a claim. Good packing, a no-fee card and a backup plan are the layer underneath the policy.

Read: the carry-on system →

Before you buy a policy

  • You have read the exclusions, not the summary
  • Medical and evacuation cover is included at a level that matches your destination
  • Any pre-existing condition is declared and confirmed covered
  • Any adventure activity you plan is explicitly named as covered
  • You checked what your credit card already covers first
  • You bought it when you booked, not the week you fly

If the worst plausible thing happened on this trip, would this policy cover it? If the answer is maybe, read the exclusions again.

Before you subscribe to a nomad policy

  • You are genuinely away long enough that a per-trip policy would expire mid-stay
  • You have read what it covers in your home country, and how many days
  • Any pre-existing condition is declared and you know whether it's covered
  • You understand this is emergency and acute care, not routine or chronic treatment
  • You know the claims process and what you have to pay up front
  • You have checked whether it covers the specific activities you actually do

If you have ongoing medical needs, speak to an expat insurance broker instead. These products are excellent for accidents and terrible for continuity of care.

The other half of this article

If it's trip insurance you need, not nomad cover

Everything above is about telling the two products apart. If the answer for you is trip insurance — a defined journey, a return date, cancellation and baggage cover alongside the medical — that is a different market with different providers. Check the medical limit and whether it pays the hospital directly before you compare on price.

Compare trip cover →
The Travel Lie — the book by iHackTravel
The long version

The Travel Lie

The book is about staying longer and spending less. Getting the cover right is the unglamorous part of that.

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