Travel insurance is a plan you purchase that protects you from certain financial risks and losses that can occur while traveling. These losses can be minor, like a delayed suitcase, or significant, like a last-minute trip cancellation or a medical emergency overseas.

Policies are sold for single trips or defined time-frames, typically one year, with the option to renew indefinitely.

Like other forms of insurance, travel policies cover specific events up to predetermined coverage limits. Coverage limits determine policy premiums, which are paid upfront when the policy is purchased or on long-term policies’ renewal dates. Covered risks and exclusions vary significantly by policy type, insurer prerogatives, and travel preferences, but typically include:

• Trip interruptions due to non-excluded events

• Cancellations (entire trip or components thereof)

• Lost or delayed baggage

• Carrier or service provider failures

• Emergency evacuations (due to physical perils and medical emergencies)

• Theft and other crimes (to learn how to minimize your risk of theft while traveling, check out the common types of theft abroad)

• Medical treatment

• Accidental death (including transportation of remains)

• Accidental dismemberment (compensation for dismemberment caused by non-excluded incidents)