Must Know Topic: Vacation Protection

Must Know Topic: Vacation Protection Yae or Nay?

Your vacation can be a significant investment.  Many save for years for that bucket list trip they have been dreaming about and they don’t know if they should invest even more into vacation protection.  So, the short answer is yes.  Always.  But there is much more to it than that and this article will cover one item to consider. If you are using a travel advisor, your advisor will have options for travel protection from trip vendors or 3rd parties and they can help you.  However, travel advisors are not insurance agents and are not permitted to answer in-depth questions on the plans. The most important thing you can do, is read your policy and call the insurance company directly if you have questions.

In general, vacation protection is about unforeseen situations.  So when an event becomes

a "known event"  any coverage purchased at that point forward may have limitations with respect to the known event.  An example would be a tropical storm than becomes a named hurricane.  Once it has a name it becomes a known event.  If you purchase after it is named, your coverage is not the same as it would be if you purchase prior to the named storm.  You may not be able to cancel for any reason, get a refund if you can not get to the destination due to the hurricane, or even a refund for a cancelled trip.  Policies vary and this is why it is important to speak to the insurance company directly if you have specific questions and read your policy.  Travel advisors can point you in the right direction. Another example would be a border closing due to COVID-19.  COVID-19 is a known event, we know borders could close,  so a refund may not be offered.  Got it, right?   Generally sickness is a covered reason regardless but there are exceptions here too.

Your cruise line, tour group, resort, etc offer travel protection for their own products.  They may treat known events differently, they may not.  If you purchase their protection plan, some offer you a voucher to travel with them again.  It is not a cash refund, but you will still have something to use for future travel.  This is where your advisor comes in.  They will consider both vendors and 3rd party to provide you with the best options to choose.

So back to the original question, should I or shouldn't I.   You never know what can happen.  Life gets in the way sometimes.   Anyone that had a trip this year and had insurance BEFORE COVID is probably really happy they bought it.   You decide.