Each year, millions of backpackers travel around for extended stays of three or six months, and quite often a year.
For many years, I have been one of those people.
Doing so means you have to purchase ‘long stay' or ‘backpacker' travel insurance, which historically has, despite its name, been inflexible to the needs of us globetrotters.
However, what so many travelers don't realize is that their travel insurance is actually invalid.
That's right, thousands of people, right now, are traveling with invalid insurance, thinking they are fully covered.
And all because of one simple clause in the terms and conditions that most never read:
You must have a return ticket pre-booked to be able to purchase the policy.
Or, as another policy puts it:
You must have a return ticket or an open ticket pre-booked to be able to purchase the policy.
Don't ruin a fun holiday by overlooking this inflexible clause.
Can't I Just Make up a Return Flight Date for My Policy?
What most travelers will do is state a return date on their travel insurance policy without actually having a return ticket for that date.
On the face of it this doesn't seem like a problem, because you can always get a ticket and come back before that date, or book a ticket in the future to return on that date.
But here's the thing: Most policies require you to have that ticket when you take out the insurance. If you don't have a ticket for the return date on your policy when you take out the policy, your insurance is invalid.
The majority of us who travel to countries in SE Asia for extended periods don't have a return flight date because we don't know when we will come back.
I have a Non-immigrant ‘O' 1 year Thai visa, which means that I can stay for a year (more if I extend). I don't buy a return ticket because I don't know when I will need one.
You might be thinking. “Why can't I just make up a date that I intend to return on?”
Because, to reiterate, if you don't have a ticket that matches that date then it invalidates the policy. Moreover, your insurance will run out on that date and you'll be uninsured. What then?
Why Don't People Know This?
Quite simply because the large majority of us don't read the terms and conditions.
When was the last time you booked a flight or a hotel and actually sat down and read through the 5 or 10 pages worth of legal spiel?
I'm willing to bet you never have.
And of course, insurance companies do not point this out to you for two reasons:
- They expect you to thoroughly read the terms and conditions.
- They they will sell fewer policies in they market their service with this type of restriction.
Fortunately, most travelers don't end up making an expensive claim for medical care or loss of baggage.
But if you do, and you are asked for your return flight date when you call up to activate the claim, you may, depending on your policy, get a nasty surprise.
You may get away with small claims on theft and baggage, but believe me, if you put in for a substantial medical claim, your insurance company will be double-checking to see whether they can wriggle out of paying you by tripping you up on this heavily overlooked clause.
They will comb through every line of the policy to make sure you have adhered to every rule.
That's Unfair!
It is, and it isn't.
It makes no sense to expect all travelers to have a return flight date when the at the very heart of traveling is the freedom to choose when you return, visa permitting, of course.
But it is equally stupid not to read the terms and conditions.
Having traveled for a while without realizing this myself, I set out to find an insurance company that didn't require a return flight date and would cover me regardless.
And I found one!
I spoke to Safetywing and explained that I had a 1-year visa and had no return flight date.
They knew all about the restrictions imposed by some of the commercial insurance companies and assured me I didn't need to have a return flight booked with their Nomad Insurance policy.
What If I'm Already Traveling?
It doesn't matter. Safetywing will insure you when you're already abroad, even if you've forgotten to get insurance before you left your home country, or your insurance has run out.
It's a flexible, comprehensive travel insurance policy designed specifically for long-term travelers, digital nomads and remote workers in mind.
In fact, you can roll your insurance over on a monthly subscription, and just end it when you decide to return.
+ Click here to visit Safetywing for a quote
In Summary
It's quite possible that a travel insurance company could refuse to pay out if they discover that you did not have a return ticket at the time of taking out the policy, depending on the terms and conditions of the policy.
Some policies may require that you have a return ticket or proof of onward travel at the time of purchase in order to be eligible for coverage.
For this reason, it is important to carefully review the terms and conditions of any travel insurance policy you are considering, and to make sure that you understand the requirements and restrictions associated with the coverage.
If you are unsure whether your policy requires a return ticket or proof of onward travel, or if you have purchased the policy and have since decided to change your travel plans, you should contact the insurance company as soon as possible to inform them of the changes and to determine whether your policy will still provide coverage.
Of course, if you don't know when you are coming back you could potentially book a return ticket so that you do have a flight, and then change that date nearer the time. The problem with that is the insurance policy will become invalid because you will have stayed past the date stated on your policy.
It really is just best to go with a policy that is designed with long-stay travelers like yourself in mind. You want a policy that is flexible enough to change with your plans, so that you aren't restricted by cover dates and return flight dates.
If you'd like further details, I cover the Safetywing policy in greater detail on this page here.
Safe travels.