Travel insurance carriers frequently highlight specific coverage benefits in their newsletters. This is convenient because some coverage can be more important based on the season, such as hurricane coverage, while other coverage can be particularly relevant for current events affecting travel, such as civil unrest in the Middle East and Africa. Travelex recently focused on cancel for any reason coverage in their company newsletter.
With the recent events around the globe, it’s a good time to encourage clients to purchase Cancel for Any Reason coverage. Let’s look at the many different ways clients could utilize their Cancel for Any Reason upgrade option:
Civil unrest breaks out at their destination prior to departure
An oil spill pollutes the beach area they are planning to enjoy
The family pet gets sick or has an accident
ANY other reason!
Cancel for any reason is the best coverage for travelers concerned about the recent political uprisings. Travelers can literally cancel the trip without providing an explanation. However, there are several conditions to this coverage that are important to understand.
To get a policy with cancel for any reason, shop early, because this benefit is only available for a short amount of time from the initial trip deposit date. Once the first payment is made toward the trip, whether a flight, lodging, cruise or other, a traveler has between 14 and 30 days to get this coverage.
Most policies offer this benefit as a selectable upgrade, which will raise the premium cost by about 50%.
Cancel for any reason requires that all pre-paid and non-refundable trip costs be insured on the policy. This means travelers don’t have the option to only insure a flight and not the cruise. Bottom line, if it is paid before the departure date and the money would be lost if the trip were cancelled, it has to be listed on the policy.
Cancel for any reason will reimburse less than 100% of the trip cost, normally about 75%.
In order for a claim to be paid under cancel for any reason, the trip must be cancelled at least two days before the scheduled trip departure. This removes the option for someone to get cold feet about traveling.
Remember, a policy with cancel for any reason may also have trip cancellation coverage. This can reimburse 100% of the trip cost, even if the trip is cancelled the day of departure, so long as the cancellation is for a covered reason in the policy.