Buy yourself peace of mind with trip cancellation insurance. Imagine worrying about the cost of canceling your trip when your mother is seriously ill! Trip cancellation plans reimburse the non-refundable costs (such as airline tickets, cruise cost and prepaid hotel bookings) of your trip in case of cancellation due to various listed reasons.

A very important clause of trip cancellation policy is this: “cancellation due to a sudden, unforeseen emergency, death or illness” concerning you, your close family member or traveling companion. The definition of “family member” differs by plan. Most plans define family members as those related by “blood or marriage.” In such a case, a boyfriend or his relatives will not qualify as family members, however close they may be to you.

Let�s say you are traveling with your boyfriend. You both want to cancel your trip as his brother falls sick. He will get reimbursed under trip cancellation insurance as his family member, as defined by the plan, is ill. But your ticket may not be reimbursed. Read the clause in the policy in detail to ascertain whether the “illness of a relative of traveling companion” is covered.

It is prudent to take trip cancellation insurance as soon as you book the tickets for the trip. The premium remains the same, but the period of coverage is longer.