Why Travel Insurance Matters

You’ve probably seen the option to “add travel insurance” pop up when booking a trip. Maybe you’ve even thought, “Do I really need this?” After all, everything seems fine now. But life doesn’t always go as planned—and travel insurance exists for exactly that reason. So let’s break it down: What does travel insurance actually cover, and when might you be glad you said yes?

BEFORE YOU DEPART: WHEN LIFE HAPPENS AT HOME

These are some of the most common reasons people cancel trips—and where insurance can help:

• A family member gets sick or passes away. You're set to leave in a few days, but your mom is suddenly hospitalized. Most policies cover cancellations due to the serious illness or death of a close family member.
  

• You get diagnosed with something unexpected. Whether it’s COVID, the flu, or something more serious, you can’t travel—and your doctor says so. If your illness meets the criteria, insurance can reimburse your non-refundable expenses.
  

• Work calls—seriously. Sometimes a new job offer, mandatory training, or unexpected termination can derail your vacation. Select policies offer coverage for work-related interruptions (look for “cancel for work reasons” coverage).
  

• A major life event pops up. Your child’s graduation date changes, or your court date gets moved (fun!). Some policies allow cancellations for significant, unavoidable life events—check the fine print.

  
  

• A hurricane threatens your destination. If you’re headed to the Caribbean during storm season, a named storm can shut down airports or resorts. Coverage applies if the event is unforeseen and impacts your travel plans.

WHILE YOU’RE TRAVELING: PROTECTING YOU ON THE GO

Insurance isn’t just about cancellations—it’s also about what happens during your trip:

• Flight delays or missed connections. If a delay causes you to miss a cruise departure or connecting flight, insurance can help cover rebooking, overnight stays, meals, and more.

  
  

• Your luggage gets lost, delayed, or stolen. No one wants to arrive without clean clothes or medication. Most policies provide reimbursement for essentials and even lost belongings.

  
  

• You’re injured or get sick abroad. Break a leg on a hiking trail in Costa Rica? Get food poisoning in the DR? Insurance can cover medical care, hospital stays, and emergency transportation—even medical evacuation, which can cost tens of thousands of dollars.

  
  

• You test positive for COVID or another communicable disease at your destination. Many destinations require quarantine if you test positive. Insurance may help cover extra hotel nights, meals, and change fees to get you home later.
  

• Traveling with kids? Multiply those risks. From sudden ear infections to forgotten prescriptions, kids are unpredictable. Insurance gives you a backup plan for their care, too.

A REALITY CHECK - YOU MAY HAVE TO PAY BEFORE YOU'RE TREATED

Unlike the U.S., where emergency rooms are legally required to treat you under EMTALA (Emergency Medical Treatment and Labor Act), many countries do not have similar protections.

In fact, in dozens of destinations—including popular spots in Europe, Asia, and the Caribbean—you may be required to pay for medical care up front before a doctor will even see you. That includes:

• Emergency room visits

• Ambulance services

• Hospital admissions

• Prescription medications
  

If you don’t have travel insurance—or proof you can pay—you might be stuck without care or face serious delays during a critical moment.

Having travel insurance means you’re covered for unexpected injuries or illnesses and have 24/7 assistance to help you navigate local hospitals, language barriers, and payment logistics. Many providers will also pay the hospital directly, so you’re not left draining your savings or maxing out credit cards in a crisis.

Whenever possible, look for a policy that provides primary medical coverage, not secondary. That means the insurance company pays the provider directly and upfront, rather than requiring you to file with your personal health insurance first and wait for reimbursement.

THE BOTTOM LINE

Travel insurance isn’t just for worst-case scenarios—it’s peace of mind for all the what-ifs. And while I’m not a licensed insurance agent and can’t advise on the specifics of your policy, I always recommend purchasing a plan—either through my trusted partner, Allianz, or a comparison site like Squaremouth.

Have a story where insurance saved your trip—or where you wish you’d had it? Share it in the comments or forward this post to a friend who needs the nudge.