Travel insurance, explained in plain English
Travel insurance is really four or five different coverages sold together. Knowing which ones you need, and buying at the right time, matters more than the brand on the policy.
The main parts of a policy
| Coverage | What it pays for |
|---|---|
| Trip cancellation | Your prepaid, non-refundable costs if you cancel for a reason the policy lists: illness, injury, a death in the family, and similar. |
| Trip interruption | Getting home and the unused part of your trip if you have to cut it short for a covered reason. |
| Travel medical | Doctor and hospital bills while you're away. |
| Medical evacuation | Transport to adequate care or home. This is the part that can cost tens of thousands of dollars without cover. |
| Delay and baggage | Meals and hotels during long delays; lost, damaged or late bags. |
If you're on Medicare, read this
Original Medicare generally does not cover health care outside the United States, with very limited exceptions. Some Medicare Advantage and Medigap plans include emergency care abroad, often with limits. If you're traveling internationally, check your plan in writing before you go, and consider travel medical and evacuation cover.
"Cancel for any reason": when it's worth it
Standard cancellation only pays for the reasons listed in the policy. Cancel For Any Reason is an upgrade that typically reimburses part of your costs, often 50% to 75%, whatever the reason, as long as you cancel a set number of days before departure. It raises the price and usually must be bought within a short time of your first trip payment.
The timing detail that matters most
Many policies offer extra benefits, such as a waiver for pre-existing medical conditions and access to Cancel For Any Reason, only if you buy within a short window after your first trip deposit, often 14 to 21 days. Buying early usually costs the same as buying late, and can cover more.
Check what you already have
- Some credit cards include trip cancellation, delay or baggage cover when you pay with them. Read the limits.
- Your health plan may cover some care abroad.
- Don't pay twice for the same thing, and don't assume a card covers medical evacuation; most don't.
How to compare: put the same trip cost, dates and ages into a comparison of several insurers, then compare the medical and evacuation limits and the list of covered cancellation reasons, not only the price. Plans are sold and serviced by licensed insurance providers.