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If you’re like us, here’s how you prepare for a big trip: You pack way too much, realize your suitcase won’t close, then start taking stuff out. The snorkel gear, the sarong, that second jacket… you don’t really need those. But there is one thing you definitely, absolutely need to pack: Travel insurance.
A lot of people weigh the additional expense and ask, “Is travel insurance worth it?” Most of the time, the answer is an all-caps YES. This is why.
Reason #1 travel insurance is a must: Most of us can’t afford to lose our vacation investment.
Let’s say you pay $7,000 for a once-in-a-lifetime luxury cruise around the Mediterranean for your 25th wedding anniversary. The day before sailing, your mother suffers a serious fall and ends up in the hospital. When you call the cruise line and explain what happened, they’re sympathetic — but you’re not getting your money back. Company policy clearly states that there are no refunds if you cancel within 14 days of departure.
Situations like these are why travel insurance is a must. When you have travel insurance with trip cancellation benefits, you can get reimbursement for prepaid, nonrefundable trip costs when you must cancel for a covered reason. Covered reasons can include situations like the covered serious illness or injury of the insured person, a travel companion or a family member; the death of the insured traveler, traveling companion or a family member; a natural disaster or other event that renders your destination uninhabitable; etc.
Reason #2 travel insurance is a must: Medical emergencies overseas can be really expensive.
Consider this scenario: On a driving tour through Argentina, a truck slams into your rental car, leaving you with a broken leg and other serious injuries. When you arrive at the hospital, you summon the strength to pull out your health insurance card. The staff just shake their heads. You’ll need to pay up front for treatment — and your medical bills rapidly climb into the tens of thousands. If you require medical evacuation, that cost can hit $200,000 or more, depending on the country you’re in and the proximity to the nearest hospital.
As the U.S. State Department notes, “many foreign medical facilities and providers require cash payment up front and do not accept U.S. insurance plans. Medicare does not provide coverage outside of the United States.”1
When you have travel insurance with emergency medical benefits, it can pay for losses due to covered medical and dental emergencies that occur during your trip. Emergency medical transportation benefits can pay for medically necessary transportation to the nearest appropriate medical facility, as well as the cost of getting you home following a covered injury or illness. The Allianz Global Assistance hotline staff may even be able to arrange payment in advance for covered emergency medical care. The upshot: When you’re wondering “is travel insurance worth it?”, weigh the small cost of buying insurance against the massive costs of a medical emergency overseas.
