Travel Insurance Made Simple: What You Really Need to Know Before You Go
Travel insurance can feel confusing, overwhelming, and full of fine print. Let’s simplify it right here and focus on what actually matters for travelers.
At its core, there are two main types of travel insurance, and understanding the difference can save you serious money—and stress.
1. Medical Coverage & Emergency Evacuation Insurance
This is the most important coverage many travelers overlook.
Most U.S. health insurance plans provide little to no coverage overseas. Medicare covers nothing outside the United States. If you become seriously ill or injured abroad and require hospitalization or care by a health professional, you may not be covered by your domestic health insurance policy or by Medicare. Medical evacuation for care back home, usually costing at least six figures, is not covered by Medicare and probably not covered by a domestic policy.
What we recommend for Traveling Professor clients:
For medical coverage and emergency evacuation only, we recommend the BCBS Multi-Trip policy.
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Typical annual cost: about $185
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Covers multiple trips per year
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Ideal for frequent travelers who want strong medical protection without trip cancellation insurance
2. Trip Cancellation & Trip Delay Insurance
This type of policy protects your financial investment in your trip.
Trip cancellation and delay insurance is designed to reimburse prepaid, non-refundable travel costs if you need to cancel or interrupt your trip for a covered reason.
Most policies also include medical and emergency evacuation coverage.
What we recommend:
The Allianz All Trips Executive Plan
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Covers trip cancellation, delays, medical, and evacuation
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Some policies also cover other trip cancellation/delay reasons including, but not limited to:
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Typical annual cost: $485–$500
This is often the best all-around option for travelers taking major trips during the year. It even helps with "little" trips too. For example, Linda and I had a flight from PHL to DFW delayed until the next day due to weather. The first thing we did was called the Philadelphia Airport Marriott and booked a room. The hotel and dinner was all paid for by the travel insurance policy.
Frequently Asked Travel Insurance Questions
Why Buy an Annual Policy Instead of a Single-Trip Policy?
It sounds counterintuitive, but annual policies are often a better value.
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Cover every trip you take for a full year
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Can cost less than a single-trip policy
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Ideal for travelers taking multiple domestic or international trips
How Much Coverage Do I Really Need?
We recommend covering up to 90% of your trip cost.
Example:
If your trip costs $5,500, consider insuring $5,000.
Think of travel insurance like car or homeowner’s insurance:
Important tip:
If your airfare is refundable or eligible for an airline credit, don’t insure it. Insurance companies usually won’t reimburse airfare you can already recover with a cash refund or airline credit.
Medical coverage recommendations:
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Minimum $50,000 medical coverage
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Minimum $100,000 medical evacuation coverage
When Should Coverage Begin?
Coverage should begin soon after you purchase your trip, even with an annual policy.
Example:
Why?
If you become ill or injured on February 1 for exampe and need to cancel, you’ll be covered. If coverage doesn’t start until March 1, that claim may be denied.
Can My Credit Card Replace Travel Insurance?
Some premium credit cards offer travel insurance, but coverage is usually limited.
Many travelers use credit card coverage supplemented by a stand-alone medical policy.
Where Else Can I Shop for Travel Insurance?
We recommend comparison sites such as:
These platforms let you compare coverage levels, exclusions, and pricing across multiple providers.
Important “Need-to-Know” Travel Insurance Tips
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Every policy has different terms, conditions, and exclusions
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It is the traveler’s responsibility to read and understand the policy
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Claims must be carefully documented. Printed documents are often needed to substantiate claims.
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Keep receipts, medical records, and written proof for any claim
We cannot stress this enough to our Traveling Professor clients:
Read the policy before you buy it. Travel insurance only works when you understand what is—and is not—covered.
Bottom Line
Travel insurance can be complicated, but we simplify it here. Consult directly with the travel insurance company for more in-depth questions or issues.
Choose the right type of coverage, insure wisely, and make sure protection starts early. It’s one of the smartest investments you can make before traveling—especially internationally.