Most travel insurance plans have a list of covered reasons for trip cancellation which include unforeseen injury, illness or death to you, a traveling companion or family member. Policies do not not typically cover for the death of a friend. However, many policies have a cancel for any reason upgrade which can be purchased for an additional premium if you meet certain conditions. The cancel for any reason will allow you to cancel for “any” reason up to 2 days before departure and receive a reduced benefit (typically 50% – 90% of your prepaid non-refundable trip cost depending on the policy purchased). Most plans which offer this option require you to insure the full prepaid cost of your trip within 14 days of the initial payment or deposit.