Travel Insurance Demystified: What You Actually Need (And What's a Waste)

Travel insurance is the least exciting purchase in trip planning, which is exactly why most people skip it or buy the cheapest option without reading the fine print. That's a gamble that works out fine 95% of the time — but the other 5% can be financially devastating.

The Risks That Actually Matter

Forget lost luggage (airlines are liable) and flight delays (credit cards often cover this). The risks that travel insurance uniquely protects against are the ones that can bankrupt you:

• Medical emergency abroad — a hospital stay in the US can cost ₹25-50 lakh. In Europe, even with travel insurance, treatment can run ₹5-10 lakh without proper coverage
• Medical evacuation — airlifting to the nearest adequate hospital averages ₹40-80 lakh
• Trip cancellation due to illness, family emergency, or natural disaster — non-refundable flights and hotels add up fast
• Adventure sports accidents — standard health insurance rarely covers injuries from activities like scuba diving, skiing, or bungee jumping

What to Look for in a Policy

1. Medical coverage of at least $100,000 (₹85 lakh) for any international trip
2. Emergency evacuation coverage of at least $250,000
3. Trip cancellation/interruption covering at least 100% of non-refundable trip costs
4. 24/7 assistance helpline with Hindi/English support
5. Adventure sports rider if you plan any active excursions
6. COVID-19 coverage (still important in 2026 for some destinations)

What's Usually a Waste

Cancel-for-any-reason (CFAR) add-ons typically cost 40-60% more and only reimburse 75% of costs. Unless your trip is extremely expensive and your plans are very uncertain, standard cancellation coverage is sufficient. Similarly, baggage delay coverage of ₹5,000-10,000 is rarely worth claiming given the paperwork involved.

Compare travel insurance policies in 60 seconds.