Prepare for anything. This is the mantra of the insurance industry and it suitably applies to your travel arrangements, as there are risks involved in any trip including lost luggage, delays, sickness or injuries. Travel insurance addresses these risks.
Trip cancellations and interruptions are not new so refunds for these issues have been offered by cruise lines and travel companies for many years. Travel insurance was developed to address these and other issues that can arise during a vacation trip. It is offered by travel companies and by insurance companies. In either case, there is a premium that you pay for the protection and there are specific terms and conditions that apply to each policy. Coverage can be purchased that is more broad or narrower depending on the level of protection you require.
If you are unable to travel due to an illness, or if you called to military duty or jury duty, trip cancellation coverage can protect you and reimburse you for your loss. This is called Trip Cancellation Coverage. There are other reasons for cancellation that can be covered depending on the policy. Policies that are more flexible add to the cost of your travel insurance policy.
You may find that the most important aspect of your travel insurance policy is the medical coverage section. This could provide payment for emergency treatment, hospitalization, and drugs that may be required due to a sudden injury or illness while on your vacation. This coverage will typically exclude pre-existing medical conditions, but it can be well worth the cost in the event of an injury. This coverage may be particularly important if you are traveling with children or the elderly, or if your trip involves a lot of physical activity like climbing or hiking.
Travel insurance can also help in the event that your trip is either delayed or cut short due to an illness or death in the family. This can make things easier when you have to tend to family matters and put your vacation on the back burner.
As with any product it is a good idea to comparison shop. Travel insurance policies vary widely with respect to what is covered, and the costs can be quite different as well. Be sure that you review a less expensive policy to ensure that your needs are fully met.
Ask your travel agent about travel insurance options. You can find plenty of good resources for travel insurance through airlines or cruise companies as well. The Internet also has several resources for travel insurance.