Travel insurance is a type of insurance that protects you from unexpected losses when travelling, whether internationally or locally. Basic plans usually only cover emergency medical bills while travelling abroad, whereas comprehensive policies usually include trip cancellation, lost luggage, aircraft delays, public liability, and other costs.

Whether it's a once-in-a-lifetime vacation or a cross-country trip for a cousin's wedding, you may be wondering whether or if travel insurance is necessary. The best response is probably that it depends on how much you can afford to lose. You'll be able to make the best decision on whether or not to acquire travel insurance if you understand what it is and what it covers.