Wander Worry-Free

By Theodore Fischer
June/July 2007

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For Raymond Ponce, 65, travel insurance equals peace of mind. The retired San Francisco teacher has organized group travel for students and older adults for years. "Especially now, as we're getting older, we should be covered in case something happens," Ponce says. "Insurance adds a little security."

Many travelers apparently agree: travel insurance sales have tripled since September 11. Despite the cost—4 to 8 percent of the trip's total price—nearly a third of people insured their vacations in 2006.

The most frequently purchased insurance, trip cancellation/interruption, generally covers nonrefundable trip costs if death, illness, or another calamity forces cancellation. For domestic, regularly scheduled flights, it may not be worth it. But if you're making deposits on tours months beforehand, trip cancellation insurance might work, says Sally Hurme, an attorney with AARP's financial security team. Read the fine print, she warns, for what qualifies as a reason to cancel, such as a pre-existing medical condition, unexpected developments like jury duty, or terrorist activity.

Consider, too, other types of travel insurance:

	Emergency medical assistance: First find out what your health insurance already covers.
	Supplier default: Refunds payments if the airline, cruise line, or tour operator goes bankrupt.
	Baggage loss or delay: Check if you're already covered by your homeowner's policy or the airline.

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