Exchange rate fluctuations between the Indian Rupee and the host country’s currency could make your trip budget go haywire. So it might be a good idea to set aside funds for local emergencies depending on the cost of living in the destination. For instance, the daily costs for a tourist in Switzerland could be higher than in Paris due to the mountainous terrain, and pricier food and transportation.
When planning an international trip, here are three essential products to consider:
- Forex cards: This is a prepaid card that can be loaded with the currency of the chosen destination. Having a forex card could be beneficial because it is safer than carrying cash. These cards offer insurance for loss of baggage and personal documents, apart from contactless payments at international destinations. The card can also be refilled, at local branches or online, in case additional funds are required. You can explore the benefits of a multi-currency forex card on Standard Chartered.
- Travel insurance: Travel insurance might be useful for all international trips. Such products could help eliminate unforeseen expenses due to trip delays, baggage loss, and flight cancellations. Travel insurance products have a slew of add-ons, such as accident insurance, loss of passport, and transit flight delays. The premiums will vary depending on the destination and the duration of the trip. A few insurers also offer burglary covers for your valuables back home when you are travelling abroad. Medical expenses are also covered up to a fixed limit during travel, however only for emergencies. However, there are two points to consider:
- Delays due to geopolitical situations such as war and civil war are out of insurance coverage. This means that if you willingly travel to countries in the midst of political and civil disturbances such as Syria and Ukraine, the financial costs incurred due to trip delays or losses will not be covered.
- Pre-existing diseases are not covered under travel insurance. So any surgeries performed for these conditions are out of insurance coverage. For instance, if you had a heart ailment prior to travel and got hospitalised for a surgical procedure in the host country, your insurer will not pay the claims.
- Medical insurance: A domestic health insurance policy will not cover medical expenses incurred outside India. These could be elective procedures or even hospitalisation due to accidents and other injuries. For this, international medical insurance could come in handy. The insurance coverage could vary based on the destination and medical history of the traveller. You could browse relevant health insurance options on Standard Chartered.
Travel visas require individuals to show proof of sufficient funds for the entire duration of the trip. The visa is approved only after the submission of the relevant bank account statements to this effect. However, the immigration authorities typically expect travellers to carry additional cash to take care of emergencies. Apart from insurance, mutual funds are another source to accumulate adequate funds for travel. This could be advantageous, especially for travel to cities with a significantly higher cost of living such as Zurich, Paris, Hong Kong, Singapore, and Tel Aviv.
Standard Chartered SC Invest could help you identify appropriate MFs to start a travel corpus. Open-ended MFs could be an option to consider because you can redeem the units whenever required.
A trip budgeted and designed in advance could be better than making a rushed plan at the last minute. Here, you could keep track of the changes in the visa fees and local expenses that could occur in the destination to bypass sudden tweaks to your travel budget.
This article is for information and educational purposes only. It is meant only for use as a reference tool. It has not been prepared for any particular person or class of persons. The products and services mentioned here may not be suitable for everyone and should not be used as a basis for making investment decisions. This article does not constitute investment advice nor is it an offer, solicitation or invitation to transact in any investment or insurance product. The value of investments and the income from them can go down as well as up, and you may not recover the amount of your original investment. Prior to transacting, you should obtain independent financial advice. In the event that you choose not to seek independent professional advice, you should consider whether the product is suitable for you. You should refer to the relevant offering documents for detailed information.
Standard Chartered Bank is a distributor of mutual funds and referrer of other third party investment products and does not provide any investment advisory services as defined under the SEBI (Investment Advisers) Regulations, 2013 or otherwise. Investments are subject to market risk. Read scheme related documents carefully prior to investing. Past performance is not indicative of future returns.
Standard Chartered Bank, India having its principal place of business at Crescenzo Building C-38/C-39 G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051 is a licensed Corporate Agent of ICICI Prudential Life Insurance Company Limited (IRDAI Reg No. 105) for life insurance products; Royal Sundaram General Insurance Co. Limited (IRDAI Reg No. 102) and ICICI Lombard General Insurance Company (IRDAI Reg No. 115) for general insurance products and Niva Bupa Health Insurance Company Limited (IRDAI Registration no. 145) for standalone health insurance products vide corporate agent number CA0028. All insurance products are underwritten by the respective insurance companies. Participation of Standard Chartered Bank clients in any insurance scheme is purely voluntary, and is not linked to the availment of any other banking products or services from the Bank. The benefits/ features of the products are indicative only. For more details on risk factors and terms and conditions, please read sales brochure carefully before concluding sale. Insurance is the subject matter of solicitation.
