The Benefits of Cancel For Any Reason Insurance
Planning a trip, whether for business or pleasure, can be stressful. Even when you book far in advance, carefully build out your itinerary, and check things off your travel to-do list, unforeseen events can upend your plans. In 2020, many travellers experienced this firsthand as the COVID-19 pandemic forced countries to close up borders. And unfortunately, if you purchase a traditional trip insurance plan, cancellations aren’t always covered.
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In those cases, travellers find themselves without much recourse. The financial loss only adds to their stress. Under basic trip insurance plans, the cancellation policy is limited and you’ll only be reimbursed for covered events specifically stated in the policy itself. But what if there was a way to really safeguard your travel investment no matter your reason for cancelling? What if you could lessen the financial blow that comes from having to cancel?
Well, the Cancel For Any Reason travel insurance does just that. Let’s check out how plans with the CFAR benefit included stack up against basic trip insurance plans.
If you need to cancel your trip, under a basic plan, you’re only covered under a limited number of circumstances:
- Natural disasters
- Lost important travel documents, like passports or visas
- Injury or illness
- Death of a family member
- Loss of a job
A basic insurance plan generally gives you 100% reimbursement if any of these situations force you to cancel your travels, but you won’t be protected for any other reason.
However, when you purchase CFAR with your insurance plan, you can, like the name suggests, cancel for any reason and still receive some level of reimbursement (usually up to 75%). Whether the cancellation is due to a global pandemic like the COVID-19 outbreak, or just a matter of personal preference, a portion of your non-refundable prepaid expenses will be refunded.
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Beyond the money-saving advantages CFAR has over basic plans, there are a few other reasons why adding this benefit is a smart move. Here are some of the top perks:
- Peace of mind. Knowing you’re covered if you have to cancel lowers the stress of planning and coordinating your trips, so you can focus on getting the most out of your travels.
- Flexibility. The cancellation policy under basic insurance plans doesn’t cover bad timing. With CFAR you can rest easy if the travel dates end up not working out for one of your travel companions, or if one of life’s most important moments, like your newest grandchild arriving ahead of schedule, catches you by surprise.
- Safety first. By purchasing CFAR with your trip insurance, you’re covered if your destination becomes a COVID-19 hot spot or even if you decide you just don’t feel safe traveling there.
While CFAR gives travellers many advantages, there are a few restrictions to keep in mind.
- If you want the extra financial safeguard this insurance offers, you’ll need to purchase it when you purchase your original policy.
- Should you need to cancel your trip, you have up to 48 hours ahead of your scheduled departure to do it.
- When you purchase CFAR with your plan, you’ll need to make sure all prepaid nonrefundable trip costs are insured and that this amount is added to the total trip cost.
- Your reimbursement depends on the amount specified in your policy, generally about 50% to 75% of covered costs.
- The CFAR benefit is only available for trip insurance plans; it is not an option for travel medical insurance plans .
When you’re ready to start planning your next trip, spare yourself the anxiety (and money) by adding Cancel For Any Reason insurance to your trip insurance plan.