Advertisement
Travel

When It Pays to Buy Travel Insurance

Investing in travel insurance can help recover some costs when your vacation gets ruined by a natural disaster, medical emergency or other catastrophe.

Question: I’m going on vacation to the Caribbean this summer. Is it a good idea to buy travel insurance? What should I look for in a policy? - P.L., Boston

Answer: Travel insurance can be valuable if you would lose a lot of money in nonrefundable deposits if you had to cancel your trip. More important, it can pay for medical evacuation—which is expensive and usually isn’t covered by health insurance—if you are sick or injured while traveling and need to be transported.

Advertisement - Article continues below

Travel policies often cost 4% to 10% of your total trip cost, says Steven Benna, of Squaremouth.com, where you can compare policies. Most policies will reimburse you for nonrefundable deposits if you must cancel or interrupt your trip because of weather or because you or a family member becomes ill. (Most policies won’t cover preexisting health conditions that were diagnosed or had changed typically within 60 to 180 days before you bought the insurance.)

You will be traveling to the Caribbean during hurricane season, so review the storm coverage. Many policies pay if flights are grounded for 24 hours or if the hotel is uninhabitable. If you want to play it safer, you can find insurers that will reimburse you if a hurricane warning is issued within 24 or 48 hours of your trip, says Julie Loffredi, of InsureMyTrip.com, which allows you to compare policies.

Advertisement
Advertisement - Article continues below

Squaremouth recommends buying $100,000 in medical evacuation coverage for international trips, or $250,000 if you’re going on a cruise or to a remote spot.

Advertisement

Most Popular

What Are the Income Tax Brackets for 2020 vs. 2019?
tax brackets

What Are the Income Tax Brackets for 2020 vs. 2019?

The IRS unveiled the 2020 tax brackets, and it's never too early to start planning to minimize your future tax bill.
June 20, 2020
Tax Changes and Key Amounts for the 2020 Tax Year
tax law

Tax Changes and Key Amounts for the 2020 Tax Year

Americans are facing a long list of tax changes for the 2020 tax year...and it's never too early to start thinking about next year's return.
June 22, 2020
10 Tax Breaks for the Middle Class
tax deductions

10 Tax Breaks for the Middle Class

Tax breaks aren't just for the rich. There are plenty of them that are only available to middle- and low-income Americans.
June 30, 2020

Recommended

Applying for Disability Benefits During a Global Pandemic
insurance

Applying for Disability Benefits During a Global Pandemic

It can take months or even years to get approved for Social Security Disability Insurance (SSDI) benefits in the best of times. Needless to say, now i…
June 24, 2020
Finding Affordable Health Care Now
insurance

Finding Affordable Health Care Now

The pandemic has caused millions of people to lose their jobs — and their health coverage. Here’s a guide to finding affordable insurance.
June 4, 2020
Health Insurance Options Exist for the Newly Unemployed
insurance

Health Insurance Options Exist for the Newly Unemployed

Special enrollment periods for Obamacare plans and expanded Medicaid coverage will help people who are suddenly out of work because of the coronavirus…
April 17, 2020
10 Things You Must Know About Filing for Unemployment Benefits
unemployment

10 Things You Must Know About Filing for Unemployment Benefits

Unemployment insurance is a joint state and federal program that provides those out of work with temporary yet steady cash to help them financially. I…
April 16, 2020