Personal Finance Essentials

What to Look for in a Travel Insurance Policy

Travel Cancellation and Medical Evacuation Insurance > What to Look for in a Travel Insurance Policy

Not all travel insurance policies are equal.

The differences between a comprehensive policy and a bare-bones one can be significant, and reading the details before you buy is essential. When evaluating any policy, focus on three core areas.

Trip Cancellation Coverage

Trip cancellation coverage reimburses your non-refundable prepaid expenses – flights, hotels, tours and other bookings – if you have to cancel your trip before departure. The critical detail to check is the list of covered reasons for cancellation. A strong policy covers a broad range of circumstances: serious illness or injury to you or a traveling companion, death of a family member, job loss, natural disasters at your destination and similar unforeseen events.

Some policies offer a “cancel for any reason” upgrade, which does exactly what it says. This add-on typically reimburses 50% to 75% of your prepaid costs and must usually be purchased within a short window of booking your trip. It costs more, but it provides the broadest possible protection if your plans change for any reason.

Trip interruption coverage is the companion to cancellation coverage. It applies if something goes wrong after you’ve already departed – covering the cost of returning home early and reimbursing unused portions of your trip.

Medical Evacuation Benefits

Medical evacuation is often the most valuable – and most expensive to use – component of a travel policy. Look for:

Global coverage with no geographic exclusions
Transportation to the nearest appropriate medical facility, not just the nearest facility
Repatriation – the ability to return you to your home country for continued treatment once you are stable

Pay close attention to coverage limits. A policy with a $50,000 evacuation limit may sound substantial, but a complex international evacuation can exceed that quickly. Look for policies with limits of $250,000 or higher for evacuation specifically.

Additional Protections

A comprehensive travel policy also includes several additional protections that can make a real difference when something goes wrong:

Emergency medical expenses – covers doctor visits, hospital stays and prescription costs incurred during your trip
Lost or delayed luggage compensation – reimburses the value of belongings that are lost, stolen or delayed by the airline
Travel delay reimbursement – covers meals, accommodations and other expenses if your trip is delayed due to weather, mechanical problems or other covered reasons

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