When purchasing travel insurance, it is very important to keep in mind the kind of insurance you are purchasing.

Travel medical insurance does not cover trip cancellations. Trip cancellation insurance provides trip cancellation benefits for covered reasons specifically mentioned in the certificate wording.

On the other hand, "cancel for any reason" travel insurance (also known as CFAR travel insurance) allows you to cancel the trip for any reason, as the name suggests. Essentially, it is trip cancellation insurance for any reason. However, please keep in mind that this coverage is for cancellation only. If you want to change your trip for any reason, there is no coverage. If you want to delay your trip for any reason, there is no coverage.

Even though the exact reasons for trip cancellation may vary by each policy, they are usually for unexpected illness or injury preventing you or your companion from traveling, a non-traveling family member being hospitalized or passing away, weather or airline/cruise-related issues, natural disasters, jury duty, being laid off from a job, etc. All of those reasons must be unforeseen and specifically covered reasons.

When you need to cancel your trip for a covered reason, you will be reimbursed for 100 percent of the nonrefundable, prepaid trip costs.

On the other hand, "cancel for any reason" travel insurance allows you to cancel your trip for any reason or for simply changing your mind. Such policies are expensive, only reimburse 50 to 75 percent and are available only under certain conditions. You must purchase the insurance within 10 to 20 days of initial trip deposit, you must insure 100 percent of the prepaid, nonrefundable trip cost, you must insure your entire trip duration, and you must cancel at least 48 or 72 hours before the departure date.

If you are a busy executive who may simply not be able to go on the trip due to work reasons, or if you are traveling to an area of political unrest, you don't feel safe at the destination, you are scared to visit your destination due to epidemic outbreak, you simply don't feel like going, or you are looking for a new job and can't go on a trip as you have to start a new job, "cancel for any reason" travel insurance would be helpful.

In all trip cancellation or "cancel for any reason" travel insurance policies, if you get any refund from a travel supplier, that amount will be deducted from the reimbursement given by the travel insurance plan.

• 

  Trip Cancellation Coverage in Travel Insurance

  Read Article
• 

  Cancel For Any Reason Travel Insurance

  Read Article