Travel insurance is designed to put the “bon” in bon voyage. It can provide extra protection before, during and after a trip or vacation.

These are four basic types of travel insurance:

• Trip cancellation insurance -- Provides coverage if a trip has to be cancelled due to illness, death or a death in the family or any other incident that is listed in the policy. It also reimburses for the unused value of the trip in the event of serious illness or injury. The approximate cost of this insurance is between 5 and 7 percent of the price of the trip or vacation package.
• Baggage and personal effects coverage -- Reimburses expenses for damaged, lost or stolen luggage. This coverage will cost approximately $50 for every $1,000 insured. However, it is a good idea to check with the airline or tour operator to see how much insurance they offer as standard coverage with a travel package purchase. Additional coverage may also be available in homeowners, rental or condo insurance policies. It is important to read all insurance policies carefully and if additional coverage for more expensive items such as jewelry or computer equipment is needed, a rider or floater policy can cover them.
• Emergency medical assistance coverage -- Compensates for injuries or illness that require emergency airlifting or a foreign hospital stay. This coverage can be particularly important for travel to remote locations where medical facilities are not readily available. As with other baggage and personal effects coverage, it is important to check personal health insurance to see what coverage is available for travel abroad.
• Accidental death or dismemberment coverage -- Offers protection while traveling abroad that may not be provided through a personal life insurance policy.

Due to the variety of travel insurance available, it is best to carefully read the policies before a purchase. Some policies may not provide protection in the event of a civil war, riot or other act of civil disobedience that causes your trip to be altered or canceled, and there is no policy that covers a change of mind.

It is also important to know the limitations of travel insurance that may be offered by a travel agency or tour operator. Some tour operators and cruise companies may offer their own cancellation clauses or waivers, however, these may have extensive limitations and may be voided by bankruptcy. Be sure to read all of the fine print on travel contracts and ask questions for further clarification.