Travel insurance is important to have when we travel overseas. Although we do not intend to cancel it when we book a trip, unexpected events such as epidemics, natural disasters, political instability or illness in the family may force us to cancel the trip. If we have no travel cancellation insurance in place, we may end up losing the entire payment made in advance.
Also, misfortune may befall the traveller any time during a trip, as a result of any of the events mentioned above. Should that ever happen, the trip interruption benefit for the properly insured would kick in. The traveller would be made whole for unused services such as hotel accommodations and air flights.
For the ill-prepared, a major medical emergency overseas can wipe out one’s savings. Medical insurance from the government or through employee benefit plan either pays very little or nothing at all for medical bills incurred outside the country. Check with your health insurance provider to make sure you are indeed fully protected against medical emergencies while you travel abroad. It is likely that you may need to purchase travel medical insurance to top up what you already have. For Canadian retirees whose retirement plan carries a life-time limit on health benefits, it is wise to buy travel medical insurance so that they can save the limit for later days when they need the money most.
Unfortunately it takes many consumers the hard way to realize the importance of buying travel insurance. It is utterly naïve to think that if anything bad happens we can always find someone to sue. Tour companies, airlines, hotels and the other travel service providers all know how to protect themselves. The terms and conditions you agreed to are hard to challenge in the court of law.