Do I really need to purchase Trip Insurance?

When I am planning a trip for either myself, my partner, a family member, friend and or client, I always bring up this particular issue.

I have noticed that there are a growing number of articles and news reports about this issue. For the most part I have not read one article that advised not to consider taking out some form of trip insurance.

It is extremely important to understand the various products that are offered, but personally I prefer using AIG Travel Guard, because of the variable of products and services that are offered.

There are many reasons that I could quote, but I will recount a personal story.

My mother decided, she wanted to go to Rwanda, and spend time with the Mountain Gorilla’s. All the normal travel preparations were planned and made. Heck it was because of her, that I got into the industry. Having Travel Insurance remains a standard operating procedure with us.

She left NYC and arrived in Rwanda, fine. A few days later I get a phone call from the American Embassy, that she has been hospitalized in “some village” and that the only form of communication is by a ham radio. She went for the gold standard and broke her leg in several places.

The bottom line, we had to change her flights and reserve a First Class airline ticket for her to return comfortably. That additional cost was over $10,000.00. The insurance covered the additional costs and their input was appreciated. The unfortunate part of this, she never got to see the Gorilla’s. (Which certainly has become a family story)

But sometimes things happen: Think about it, you have insurance for other factors in your life, like, home, car, medical and whatever else. Protecting any unforeseen non-refundable portions of your trip is really in your best interest.


Q. Why should a traveler buy travel insurance?
A. Travel insurance gives travelers coverage for unforeseen problems, from a cancelled flight to a serious illness—or in rare cases, even an act of terrorism or the financial default of a travel supplier. If an illness, accident, or other covered unforeseen circumstance forces a traveler to cancel or interrupt their plans, they face two major financial losses—money invested in nonrefundable pre-payments, and medical expenses that in many instances may not be covered by health insurance.


Q. What happens if a traveler must cancel their vacation?
A. Often a traveler will lose nonrefundable deposits and prepayments that can add up to hundreds—or even thousands—of dollars. A comprehensive travel insurance plan through AIG Travel Guard can provide trip cancellation coverage for the traveler's vacation investment—the insurance company reimburses the traveler for all pre-paid, nonrefundable expenses for a covered loss.


Q. How does trip cancellation and interruption coverage work?
A. It reimburses for forfeited, nonrefundable, unused payments or deposits if the traveler must cancel or interrupt their trip due to a covered reason.


Q. What other coverage is typically included in an AIG Travel Guard travel insurance plan?
A. In addition to trip cancellation and interruption, the more comprehensive travel insurance plans available today may also cover emergency medical expenses; emergency medical transportation, when ordered by a doctor, to the nearest adequate medical facility; reimbursement for accommodations and expenses incurred due to travel delays; reimbursement for the purchase of essential items if baggage is delayed; and coverage against lost, stolen or damaged baggage.


Q. Does travel insurance cover terrorism?
A. Many travel insurance policies do not cover terrorism, or only cover terrorist acts that occur on foreign soil. Travel insurance through AIG Travel Guard can cover terrorist incidents both in the United States and abroad.


Q. Is the financial default of an airline, cruise line or tour operator covered?
A. Many of AIG Travel Guard's retail insurance programs include financial default coverage if the program is purchased within 15 days of making the initial trip deposit.


Q. Does AIG Travel Guard offer travel insurance plans tailored to specific types of travel?
A. Yes. AIG Travel Guard offers travel insurance plans for an array of budgets, from modest trips to high-end luxury vacations. There are also products for last-minute getaways and extended trips, and specific coverage plans for cruise travelers, golf travelers, students, and sports travel.


Q.Do I really need to purchase Trip Insurance?
A. The cost of travel insurance is based, in most cases, on the value of the trip and the age of the traveler. Typically, the cost is five to seven percent of the trip cost.


Q. What else is offered with the purchase of an AIG Travel Guard plan?
A. To boost travelers' confidence when traveling, AIG Travel Guard has added LiveTravel® assistance, which provides 24-hour, "911" emergency travel agency-type services to all standard retail plans, in case a traveler has to change a flight or a hotel room. AIG Travel Guard has also added assistance with emergency cash transfers, pre-trip consultation services (travel advisories, passport requirements, inoculation information, etc.), and live messaging, which will relay any e-mail or phone message to family, friends or business associates.


Certain restrictions may apply, which means further details of the over-all product coverage within the selected policy needs to be understood.