Travel insurance protects travelers against financial risk posed by cancelled trips, lost luggage and medical emergencies while abroad. It typically works alongside your regular health and dental plans and covers costs that your primary coverage does not, including emergency medical evacuation if required.

Most comprehensive travel insurance policies cover trip cancellation. When reviewing your policy, check its specifics regarding trip cancellation coverage or an option that allows cancellation for any reason.

Trip cancellation

Travel cancellation insurance (or trip interruption coverage) reimburses for nonrefundable, prepaid travel expenses if your trip is canceled due to illness, injury, natural disasters, military deployment/jury duty obligations or work obligations. Some policies even cover lost/stolen luggage as well as provide medical evacuation and other trip assistance services.

Some travel insurance providers offer an add-on (or upgrade) that provides “cancel for any reason” coverage, which typically covers more of your pre-paid nonrefundable trip expenses without needing to provide a specific reason. Unfortunately, however, this type of plan tends to be more costly than its standard plans and may not apply in cases such as pregnancy or felonious conviction; other exclusions might apply if seeking medical treatments abroad such as dental or hair transplant procedures; it’s essential that you carefully weigh its costs and benefits when making this decision!

Trip interruption

Travel insurance should include both cancellation and interruption coverage; with trip interruption coverage covering medical issues or unexpected events requiring you to cut short your vacation early for reasons covered under your policy, such as illness. A comprehensive policy should cover these potential hiccups so that unused portions can be reimbursed after departing for vacation.

As each policy may cover different reasons for travel expenses, this benefit usually covers anywhere between 100% and 200% of non-refundable trip expenses and transportation costs such as airfare home. Many comprehensive travel insurance plans and premium credit cards offer this coverage; other policies provide coverage too such as homeowners or renters policies or standalone rider options for an additional fee. It’s wise to inquire with your insurer on what coverage exists so that you can make an informed decision for your unique circumstances.

Medical expenses

Travel medical policies can be an essential part of overseas travel plans. Before setting off, check with your health insurance provider to see if their current plan covers medical expenses incurred overseas and what the limit is; additionally, ensure any preexisting conditions are covered as well.

If your destination is remote and medical care may be limited, or if you plan on engaging in adventure travel activities like scuba diving, then consider purchasing a travel medical policy as a supplement to your regular health coverage plan. These types of policies typically provide direct payment directly to hospitals while being more affordable than using regular health coverage alone.

Purchase of travel medical policies can provide coverage from five days up to one year, or an all-in plan that offers worldwide coverage. Prices depend on provider and coverage selection; Sarah Horvath specializes in writing about home services, insurance and household finances as a freelance writer.

Accidental death

Some travel insurance policies provide accidental death coverage that pays your beneficiary a lump sum in the event of your death while on a covered trip. This standalone coverage usually offers guaranteed issue status – meaning no medical exam or waiting period before benefits kick in – making this an attractive option if health concerns have prohibited other forms of coverage, or your job puts you at higher risk. Also check with existing providers or your employer whether coverage extends when traveling on business or for pleasure.

Coronavirus pandemic has made the decision of purchasing travel insurance more complex than ever, ultimately coming down to your willingness and need to risk something unforeseen happening, along with what your priorities are when traveling without worrying about financial ruin.