Trip Cancellation Insurance
As its name implies, trip cancellation insurance (sometimes known as trip interruption insurance or trip delay insurance) covers you in the event that you or your traveling companions need to cancel, interrupt or delay your trip.
Policies differ in terms of which reasons are acceptable, but it's fairly typical for this insurance to cover cancellation or interruption for the following reasons:
Sudden business conflicts
Change of mind
Delay in processing your visa or passport
Illness or injury
Weather-related issues
Some policies may include additional coverage, which would insure you against one or more of the following events:
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An act of terrorism
The vendor (cruise line, tour company, airline) going out of business
An accident on the way to the airport
Fire or flood in your house
Jury duty
The insurance pays the difference between the refund you get from the vendor and the amount you originally paid for the trip. Make sure the insurance you buy is not from the same carrier you purchased the trip from; that way, if the carrier goes out of business, you'll still be protected if something goes wrong during your trip.
Travel Medical and Major Medical Insurance
Both of these types of insurance provide medical protection if the policyholder becomes ill or is injured while traveling. The difference between these two types of insurance is the duration of coverage:
Travel medical insurance provides only short-term medical coverage; the duration can be anywhere from five days to up to one year, depending on the policy.
Major medical insurance is for travelers who are planning to take longer trips of six months to one year or longer.
These types of insurance can help you cover medical expenses and locate doctors, hospitals, healthcare facilities and foreign-language services if you become ill or injured while traveling overseas. Whether you purchase medical insurance separately or you already have it, find out if you will need prior approval from your insurance company for any type of medical c