Besides reimbursement for a cancelled trip, Trip Cancellation Insurance may provide you with other benefits both prior to and during your planned vacation. The primary purpose for purchasing this type of insurance is to recover the cost of any non-refundable deposits that were required from the travel service providers. In some cases, your travels may be interrupted during your vacation. This is called the Trip Interruption Benefit that is described under your trip cancellation insurance policy.
Most trip cancellation insurance policies will also provide you with financial assistance if there is an unexpected delay in your trip. This assistance is usually a maximum amount per day that is provided to assist you with making other arrangements or paying for hotel accommodations that were necessary because of the situation. This can also be caused due to a missed flight connection that was not a fault of your own.
Trip cancellation policies will usually provide some assistance to cover the cost of lost luggage and will have a maximum benefit, regardless of the value of the lost items in your luggage. There may be additional compensation if your luggage is delayed but is eventually returned to you intact.
Your insurance policy may also provide coverage for emergency medical evacuation or repatriation of remains. If, during your travels, you become ill or injured and need to return to the United States, your insurance policy may cover the costs associated with your transportation and return. In the event of a death while traveling, the insurance company may provide benefits that will pay for the return of your remains to your home place of residence. If you are hospitalized overseas, the insurance company may also offer an emergency reunion benefit that will pay for a loved one to travel to your destination.
Some trip cancellation insurance policies may also provide common carrier accidental death life insurance benefits that would be paid to your beneficiary in the event that you die in a plane crash during your trip.