Travel Insurance: What You Need to Know Before You Travel

If you’re on Facebook and you’re part of any Black travel groups, you’ve probably seen the posts.

A traveler gets sick or injured thousands of miles from home. Their family is trying to figure out how to pay a foreign hospital. Someone needs to be medically evacuated. A family needs help getting a loved one home. Then a GoFundMe starts circulating because suddenly they’re dealing with thousands, or even tens of thousands, of dollars in expenses they never expected.

We’ve seen these stories too many times.

Recently, 36-year-old Virginia mother of four Ayla Garcia traveled to Kenya on a mission trip to support a home for orphaned children. According to her family, she contracted a severe Salmonella infection after consuming contaminated ice. The infection became life-threatening, and she ultimately died in Kenya. A GoFundMe was established to help her family with medical and funeral expenses.

Her story is heartbreaking. Stories like hers are an important reminder that becoming seriously ill or injured while traveling abroad can create not only a medical emergency, but a financial one. That’s why we’re going to start this travel insurance guide somewhere different. Before we talk about canceled trips, delayed luggage or missed flights, let’s talk about protecting you.

If You Read Nothing Else, Remember This

Over the years, we’ve heard travelers say some version of this many times:

“Oh, I’m definitely going on this trip. I don’t need travel insurance.”

We understand the thinking. When most people hear “travel insurance,” they think about protecting the money they’ve spent in case they have to cancel their trip.

And yes, travel insurance can protect eligible prepaid, nonrefundable trip expenses if you have to cancel for a covered reason. Some policies even offer optional Cancel for Any Reason coverage.

But cancellation isn’t the only reason to protect yourself.

When you leave for vacation, you’ve already paid for most of the trip. You paid for the resort. You paid for the cruise. You paid for the tour. You paid for your flights.

What you haven’t paid for is the emergency you never expected to happen.

If you become seriously sick or injured abroad, you could suddenly be responsible for medical treatment, hospitalization or even an emergency medical evacuation. Those expenses can potentially cost far more than the vacation itself.

That’s why we believe emergency medical and medical evacuation coverage are among the most important things to consider when traveling internationally.

“I’m definitely going” tells us you don’t plan to cancel your vacation. It doesn’t tell us what happens if something happens to you once you get there.

That’s enough. Then your medical sections can do the explaining instead of cramming it all into the introduction.

And later, yes, I would absolutely give this its own section:

What Is Travel Insurance?

Travel insurance is designed to protect you against certain financial losses and emergencies that can occur before or during a trip.

Depending on the policy you purchase, coverage may include:

• Trip cancellation
• Trip interruption
• Emergency medical treatment
• Emergency medical evacuation
• Travel delays
• Missed connections
• Lost, delayed or damaged baggage
• Non-medical emergency evacuation
• Other covered travel emergencies

Not every policy includes the same benefits, limits or covered reasons.

That’s important.

Buying travel insurance doesn’t mean everything that goes wrong on your vacation is automatically covered.

Your policy is a contract. What matters is what your particular policy says is covered, how much it will pay, what exclusions apply and what documentation may be required when you file a claim.

Emergency Medical Coverage

This is where international travelers should pay special attention.

Emergency medical coverage can help pay eligible medical expenses if you unexpectedly become sick or injured during your trip.

Depending on your policy, eligible expenses might include things such as physician services, hospitalization, diagnostic testing, prescription medication and other medically necessary treatment.

Don’t automatically assume your regular U.S. health insurance follows you around the world.

Some health insurance plans provide international emergency benefits. Others provide limited benefits, require you to pay first and seek reimbursement later, or provide no international coverage at all.

The State Department recommends contacting your health insurance provider before traveling to determine what medical services your existing plan covers outside the United States.

Ask before you leave.

And don’t stop at asking, “Am I covered overseas?”

Ask what your actual benefit is, whether the coverage is primary or secondary, whether you may need to pay the foreign provider upfront, and what happens if you require treatment somewhere your current plan doesn’t cover.

Emergency Medical Evacuation

Medical evacuation is different from simply paying your hospital bill.

Let’s say you become seriously ill or injured somewhere that doesn’t have the medical facilities necessary to appropriately treat your condition.

You may need to be transported somewhere else.

That could mean an ambulance to another city. It could mean transportation to another island or country. In a serious situation, it could involve a medically equipped aircraft and medical personnel.

And that’s where the numbers can become frightening very quickly.

According to the U.S. Department of State, medical evacuation by air ambulance back to the United States can cost approximately $20,000 to $200,000, depending on your location and medical condition. Most regular health insurance plans do not pay to bring you back to the United States by special medical evacuation.

That is why you should pay attention to the words Emergency Medical Evacuation when comparing policies.

Don’t just look at the price of the insurance.

Look at the coverage.

How Much Medical Evacuation Coverage Do You Need?

You’ll see dramatically different medical evacuation limits when comparing travel insurance policies.

You might find $100,000 of coverage on one policy and $500,000 or even more on another.

At first glance, $100,000 sounds like an enormous amount of money.

But where are you going?

A traveler going from the continental United States to a resort in the Caribbean is dealing with a very different geographic situation from someone going on safari in Kenya, trekking through a remote region, visiting distant islands or traveling somewhere with limited advanced medical infrastructure.

The farther and more remote you’re going, the more seriously we would look at higher medical evacuation limits.

And remember, emergency medical evacuation doesn’t necessarily mean, “Put me on a plane and take me back to my house.”

Policies generally have specific rules governing when an evacuation is medically necessary and where you’re transported. For example, Faye describes its medical evacuation benefit as transportation to the nearest appropriate medical facility when a traveler has an acute, severe or life-threatening illness or injury and adequate treatment isn’t available nearby.

Read those definitions carefully.

What If a Traveler Dies Abroad?

We know this isn’t something anyone wants to think about when planning a vacation, but it happens, and it’s something travelers and their families should be prepared for.

If you die while traveling abroad, the financial burden is no longer yours. It becomes your family’s.

Returning a loved one’s remains to the United States can involve local authorities, funeral homes, documentation, transportation and significant expenses. Travel insurance may include repatriation of remains coverage, which can help arrange and pay eligible costs associated with returning a deceased traveler home.

It’s not the most pleasant benefit to read about when you’re excited about an upcoming vacation, but it’s one worth checking for, especially when traveling internationally.

Trip Cancellation Coverage

Now let’s talk about the part of travel insurance most travelers immediately think about.

Trip cancellation coverage can reimburse you for eligible prepaid, nonrefundable trip expenses when you have to cancel your trip for a covered reason.

Those last two words matter.

You generally can’t simply decide that you don’t want to travel anymore and expect a standard travel insurance policy to reimburse you.

Covered reasons vary by policy and can include certain illnesses, injuries, deaths, severe weather events and other circumstances specifically identified in the policy.

You should also insure the amount of money you actually stand to lose.

If you’ve booked a $5,000 vacation but $3,000 of it is completely refundable, your actual nonrefundable exposure may only be $2,000.

That’s the amount you need to understand when you’re evaluating trip cancellation coverage.

Trip Interruption Coverage

Trip interruption deals with something happening after your trip has already started.

For example, you may have to unexpectedly return home because of a covered emergency.

Depending on the policy and circumstances, trip interruption coverage can help reimburse eligible unused portions of your trip and certain additional transportation expenses associated with interrupting your vacation.

Again, covered reasons and reimbursement limits vary by policy.

Cancellation protects you when you can’t take the trip.

Interruption helps when you’ve already left and something covered forces the trip to change or end early.

Travel Delay and Missed Connection Coverage

Sometimes nothing catastrophic happens. Travel just goes sideways.

Your flight gets significantly delayed. Weather strands you overnight. A covered delay causes you to miss a cruise departure or another scheduled connection.

Travel delay benefits may reimburse eligible expenses such as meals, accommodations and transportation after you’ve been delayed for the amount of time specified by your policy.

Missed connection benefits may provide additional protection when a covered delay causes you to miss another scheduled departure.

Always check the required delay period and maximum reimbursement amount.

A policy that starts paying after six hours is different from one requiring a much longer delay.

What About Pre-Existing Medical Conditions?

This is an area where travelers need to read the fine print.

Travel insurance policies may exclude losses related to pre-existing medical conditions unless you qualify for a waiver of that exclusion.

Those waivers can have strict requirements, including purchasing your policy within a certain number of days after your initial trip deposit and being medically able to travel when you purchase coverage.

For example, Faye currently states that pre-existing medical conditions can qualify for coverage related to trip cancellation or interruption when the plan is purchased within 14 days of the initial trip deposit and the traveler is medically able to travel when the policy is purchased.

Don’t wait until the week before departure to start thinking about this.

If you or someone whose health could affect your trip has a pre-existing medical condition, investigate the requirements when you make your first trip payment.

What Is Cancel for Any Reason Coverage?

Cancel for Any Reason, usually called CFAR, is an optional benefit available with some policies.

It gives travelers more flexibility to cancel for reasons that wouldn’t ordinarily qualify under standard trip cancellation coverage.

But “Cancel for Any Reason” does not necessarily mean “get all your money back.”

CFAR generally reimburses only a percentage of eligible prepaid, nonrefundable trip costs, has purchase deadlines, and requires cancellation by a specified time before departure.

For example, Faye currently offers an optional CFAR add-on that can reimburse up to 75% of eligible trip costs, subject to the policy’s terms and availability.

This coverage can be valuable if you want more flexibility, but read the requirements before assuming you’re protected.

Lost, Delayed or Damaged Baggage

Travel insurance can also provide protection for your belongings.

Depending on the policy, baggage benefits may provide reimbursement when luggage or personal belongings are lost, stolen or damaged during a trip.

Baggage delay coverage is different. It can help reimburse eligible purchases when your luggage doesn’t arrive when you do and you need necessities while you wait.

Pay attention to:

• The overall baggage coverage limit
• The per-item limit
• Special limits for valuable items
• How long luggage must be delayed before benefits apply
• Required receipts or documentation

Don’t assume a $2,000 baggage benefit means your $2,000 designer bag is automatically insured for its full value. Per-item and category limits can apply.

Single-Trip vs. Annual Travel Insurance

If you take one or two major vacations per year, a single-trip policy may make sense.

If you’re constantly traveling, an annual or multi-trip policy may be worth investigating.

But don’t assume annual automatically means better.

Compare what is actually covered.

An annual policy may have different trip-length restrictions, cancellation limits, medical benefits or other limitations than a comprehensive policy purchased for one expensive vacation.

Frequent travelers should compare the convenience and cost of annual protection with the actual benefits they would receive for their individual trips.

What If Comprehensive Travel Insurance Is Too Expensive?

This is one of the most important conversations we want travelers to have.

The price of comprehensive travel insurance is influenced by several factors, including your age, destination, trip length, coverage selected and the amount of prepaid, nonrefundable trip cost you’re insuring.

That means an expensive vacation can result in a more expensive comprehensive travel insurance quote.

Maybe you look at the quote and decide you simply aren’t willing to spend that much.

Okay.

But don’t immediately jump from “I don’t want to insure my entire trip cost” to “I’ll travel completely uninsured.”

Remember what we discussed at the beginning.

If your $4,000 vacation is already paid for and you can’t travel, losing $4,000 would hurt.

But becoming seriously ill overseas could potentially create new bills that are substantially higher than that.

If comprehensive coverage doesn’t fit your budget, investigate whether a travel medical policy with strong emergency medical and medical evacuation benefits is available for your trip.

Depending on the traveler, destination, trip length and coverage selected, medical-focused policies can sometimes be considerably less expensive than comprehensive policies that also insure the full prepaid trip cost.

Don’t assume they’ll always be under $100, because pricing varies. Get the quote.

But at minimum, know what your options are before deciding to leave the country without medical protection.

What Should You Look for Before Buying Travel Insurance?

Don’t choose a travel insurance policy based on price alone.

Before purchasing, look at the actual policy and ask yourself:

• How much emergency medical coverage does it provide?
• How much emergency medical evacuation coverage does it provide?
• Does my destination or itinerary warrant higher evacuation coverage?
• Is medical coverage primary or secondary?
• What prepaid, nonrefundable trip costs am I insuring?
• What reasons qualify for trip cancellation and interruption?
• What are the travel delay requirements?
• What are the baggage and per-item limits?
• Are pre-existing medical conditions relevant to me?
• Do I need Cancel for Any Reason coverage?
• Are the activities I’m planning excluded?
• Does the insurer provide 24/7 emergency assistance?
• Will I potentially have to pay medical expenses upfront?
• What documentation would I need to file a claim?

Most importantly, read your policy.

The summary page is helpful, but the actual policy contains the terms, conditions, limitations and exclusions that determine whether a claim is covered.

Who We Recommend: Faye Travel Insurance

Black People Vacation partners with Faye Travel Insurance.

Faye has become one of our preferred options for travelers looking for comprehensive travel protection, particularly because of its strong medical and evacuation benefits and its technology-focused approach to helping travelers while they’re away.

For an example U.S. resident traveling internationally, Faye currently advertises up to $250,000 in primary emergency medical expense coverage and up to $500,000 in emergency medical evacuation coverage. Its international coverage can also include trip cancellation, trip interruption, travel delay, baggage protection and 24/7 assistance. Benefits and availability vary by state and policy.

One feature we particularly appreciate is that Faye says it may be able to add funds to a traveler’s Faye Wallet, pay a medical facility directly, or reimburse covered medical expenses after a claim, depending on the circumstances. That’s worth understanding because one of the biggest concerns during an overseas emergency isn’t simply whether you’re insured. It’s how you’re going to pay the bill when you’re standing at a hospital thousands of miles from home.

Frequently Asked Questions About Travel Insurance

Do I really need travel insurance?

Whether you purchase travel insurance is ultimately your decision. However, international travelers should at minimum understand whether their existing health insurance covers them abroad and how they would pay for emergency medical treatment or evacuation if something serious happened.

The U.S. Department of State recommends travel health insurance and advises travelers to consider medical evacuation insurance.

Does my U.S. health insurance cover me internationally?

Most insurance policies don’t. Contact your health insurer before traveling and ask specifically about emergency treatment outside the United States.

Does travel insurance cover every cancellation?

No.

Standard trip cancellation coverage applies when you cancel for a reason covered by your policy. Simply changing your mind generally isn’t enough.

Travelers wanting broader cancellation flexibility can investigate Cancel for Any Reason coverage.

Is travel insurance the same as travel medical insurance?

Not necessarily.

Comprehensive travel insurance can bundle protection for your prepaid trip investment, medical emergencies, baggage, delays and other covered events.

Travel medical insurance is generally more focused on medical expenses and related medical protection while you’re traveling.

That’s why travelers who decide comprehensive coverage is too expensive should still investigate medical-focused protection rather than assuming their only choices are full insurance or nothing.

How much emergency evacuation coverage should I have?

There’s no single amount that’s right for every traveler.

Consider where you’re traveling, how remote you’ll be, the availability of advanced medical facilities and how difficult it could be to transport you to appropriate care.

The State Department estimates an air ambulance back to the United States can cost approximately $20,000 to $200,000 depending on location and medical condition.

A Caribbean resort vacation and a remote African safari simply don’t present the same evacuation logistics.

When should I buy travel insurance?

Ideally, start comparing coverage shortly after making your first trip deposit.

You can often purchase insurance later, but certain benefits may have time-sensitive purchase requirements. Pre-existing-condition waivers and optional Cancel for Any Reason coverage are two examples where waiting can affect what’s available to you.

The Bottom Line

We’re travel professionals. Of course we want you to protect the money you’ve invested in your vacation.

But more importantly, we want you to protect yourself.

A canceled vacation can mean losing money you’ve already spent.

A serious medical emergency abroad can mean suddenly needing money you never planned to spend.

Those are two very different risks.

So if you remember nothing else from this guide, remember this:

Before you leave the country, know how you’re going to pay for medical care if you get sick or injured, and know how you’d get to appropriate medical care if where you are can’t provide it.

Don’t assume your health insurance covers you. Don’t assume the U.S. government will pay to bring you home. And don’t assume travel insurance policies are all the same.

Look at the medical coverage.

Look at the evacuation coverage.

Look at where you’re going.

Then choose the protection that makes sense for your trip.

Because the best time to figure out how your travel insurance works is before you need it.