Travel insurance needs are very personal: Here's what to know in case your plans go south

Q: My dear friend recently suffered a fall while visiting her family. She ended up in an out-of-town facility for several weeks and then required custom evacuation services to return home. For the first time, I’m strongly considering travel insurance; what do I need to know?

A: I’m so sorry to hear that your friend had such an unexpected and stressful experience. Like all insurances, the desire to pay for a policy that shares risk when traveling is a very personal decision. Let’s review the coverages offered and try to narrow in on your priorities.

Where are you going, and do you want to pay for evacuation coverage that will bring you back to the U.S. for treatment?When there is a serious illness or injury and medical treatment is required, a travel insurance policy with solid medical coverage can cover the cost of emergency treatment, hospitalization and medication. A couple months ago, another good friend became ill while on riverboat vacation in Paris and she didn’t have travel insurance. The complete cost of her testing, diagnosis and treatment was only $300.

An emergency evacuation may be covered during a natural disaster, political unrest or a medical emergency.

Recently a young couple was walking the Camino Trail and staying in hostels. When he contracted COVID, the hostels made them leave so they could protect the safety of their other guests. Too sick to travel home, the young couple had to pay for an expensive hotel in Spain.

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Is trip delay, cancellation and interruption your priority?While delays are more common in less developed parts of the world and rebooking air can be expensive, travel disruption takes many forms. Civil conflict, terrorist attacks, epidemics, natural disasters and economic unrest are all acceptable reasons to rearrange schedules and accommodations. Some carriers have an emergency team of experts staffed by Army Rangers, Navy Seals and Air Force Pararescue. These coverages provide peace of mind wherever you’re going.

Still checking luggage?After personally spending three days in Africa without my clothes, I learned that lost or delayed baggage can seriously impact a vacation. Most travel insurance plans include lost luggage coverage for clothing and other essential items.

How about losing your backpack, purse or wallet?These items often include expensive electronics and essential identification. The travel insurance representative may be able to guide you through the maze of replacing government-issued documents necessary for returning home. Don’t carry too much cash; it’s rarely reimbursable.

Are you planning to rent a vehicle overseas?Check your auto insurer before you go to find out what’s covered. Ask the rental company overseas to find out if there are any age limitations. Some countries have extra rules for renters above age 75, and many impose a fee or require the purchase of overpriced insurance similar to the “under 25” fee in the U.S. And then there are the countries that want documented proof of suitability, which can vary by location.

Do your research.There are several good websites where searching for a plan narrows the focus into specific goals. Consider these questions:

• Is this just for one trip? Or are you traveling many times this year and want a multi-trip plan?

• Do you want a basic plan or prefer to have extensive coverage that includes a multitude of situations and many more benefits?

• Is trip interruption or cancellation a priority?

• Is emergency medical a top priority? What about evacuation back to the US?

• Do you want to cover delayed or lost baggage?

Most travel insurance reimburses covered financial losses and requires that a claim be filed and approved, and the loss must be proven. Pricier plans may pay expenses upfront or pay a fixed payment of around $100 per day. The travel insurance plan that you choose can be based on your priorities. As with most things in life, you get what you pay for.

Safe travels!

Mary Baldwin, CFP?, is a fee-only financial planner at Buckingham Strategic Wealth in Indian Harbour Beach. Contact her at 321-428-4555 or [email protected].

For informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is based on third party data and may become outdated or otherwise superseded. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this information. R-24-7414.

This article originally appeared on Florida Today: To buy or not to buy travel insurance: Your goals may lead to an answer