Travel insurance: Should you or shouldn’t you?

Face it; travel insurance can be confusing; the term can be used to refer to many different things. Here’s a look at the different kinds of travel insurance available to help you figure out what you need:

Trip Cancellation Insurance – This protects you if you have to cancel your vacation in the event of a covered medical reason or a death in your immediate family. Many tours and cruises are nonrefundable if you cancel at the last minute. This protection may be offered by the tour operator or cruise line or by a separate company. Remember: Trip cancellation insurance does not cover you if you cancel because of a business reason or because you changed your mind.

Flight Insurance — Flight insurance covers you in the case of accidental death during the boarding, flight, and deplaning of a single flight. If an accident should occur, the benefits are paid to your estate or beneficiary.

Blanket Insurance Policies – Several companies, such as TravelGuard and AccessAmerica, offer travel insurance packages that include trip cancellation insurance, overseas health coverage, and flight insurance. Such policies are based on the price of your vacation and are generally more affordable than buying each policy separately.

So, should you or shouldn’t you buy travel insurance?

Consider how much money you would stand to lose if you were to cancel at the last minute. Keep in mind that you don’t have to be in poor health to need travel insurance; even a broken leg or sprained ankle can wreak havoc on your travel plans.

As with any insurance policy, make sure that you read the terms and benefits carefully before you purchase the policy.

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