Travel insurance protects you from financial losses you could incur while traveling. Travel insurance is a standalone policy that can either be purchased on a per-trip basis, or as an annual policy covering multiple trips. Costs can vary based on factors like your age, the length of trip, activities you’ll be participating in, and how much you spent on the trip.

Trip insurance may cover you for  minor inconveniences, like missed airline connections or damaged luggage, to major crises, like emergency medical evacuation in a life-threatening situation. Depending on the terms of your policy, you can be reimbursed up to a certain amount for costs incurred when your holiday plans take a turn for the worse. Plus, travel insurance companies also provide 24/7 assistance to help you navigate emergency situations.