What is Travel Insurance?
Travel insurance is an insurance policy purchased to help with reimbursement for expenses should an unforeseen event result in a cancellation or interruption of the trip. The specifics of what is covered and how much will be reimbursed will vary depending on the terms of the policy.
Below are examples of the most common types of travel insurance and a brief summary of what they may cover. It is important to read and understand the terms and conditions of the policy prior to purchasing to ensure you are purchasing the policy type to cover your needs :
Trip Cancellation/Interruption/Delay: This type of policy covers the financial investment in the event your trip or portions of your trip are canceled due to illness or injury. This type of policy may also cover financial costs if a flight is delayed requiring an overnight stay in a hotel.
Baggage Loss/ Delay or Personal Effects: This type of policy covers the traveler’s lost, stolen, or damaged baggage and personal items.
Travel Medical & Medical Evacuation Insurance: These types of policies offer secondary health, accident insurance, and medical emergency transport to a licensed medical facility when traveling. These are important types of policies to know about, especially when traveling to areas where standard health insurance plans and Medicare are likely not to cover, such as traveling abroad. Some countries, including most of the European Union, may require proof of medical insurance in order to receive a visa.
Cancel for Any Reason (CFAR): This type of policy allows the insured to cancel their trip and receive a partial refund for any reason not covered in the original trip cancellation plan.
Knowing what is not covered is just as important as knowing what is covered. Below are examples of common travel policy exclusions.
- Pre-existing health conditions
- Pandemic - https://content.naic.org/cipr-topics/pandemics-and-covid-19
- Civil and political unrest at the traveler’s destination
- Pregnancy and childbirth