Travel insurance is a way to minimize the considerable financial risks of traveling. These risks include accidents, illness, and missed flights, canceled tours, lost baggage, emergency evacuation and getting your body home if you die. Each traveler?s risk and potential loss varies, depending on how much of the trip is prepaid, the kind of air ticket purchased, your state of health, the value of your luggage, where you?re traveling, what medical coverage you already have and the financial health of the tour company or airline. For some, insurance is a good deal; for others, it?s not. Here is an overview of the different types of travel insurance.

Trip Cancellation Insurance This type of travel insurance would reimburse you if the cruise line or tour operator goes out of business. It would also provide coverage if you have to cancel the trip due to sickness, a death in the family or another calamity listed in the policy. In addition, if you or an immediate family member becomes seriously ill or is injured during the trip most policies would reimburse you for the unused portion of the vacation.

The cost is generally five to seven percent of the price of the vacation, so a $5,000 trip would cost roughly $250 to $350 to insure.

Baggage Insurance or Personal Effects Coverage This type of travel insurance would provide coverage if your personal belongings are lost, stolen or damaged during the trip. To insure $1,000 worth of personal belongings for a week, it would cost roughly $50 per year. Before purchasing this type of coverage, find out how much insurance the airline or trip operator provides for your belongings. Also, check your homeowners or renters policy. It will usually provide coverage for off-premises theft. Therefore, if your luggage is stolen, your insurer will pay to replace it, less the deductible. You may also purchase an endorsement to your existing homeowners policy to specifically cover expensive items such as jewelry or electronic equipment.

Emergency Medical Assistance This type of travel insurance provides insurance and medical assistance for travelers. This insurance would provide coverage if you got seriously sick or were injured and needed to be flown home, or if you had to stay for a prolonged period of time in a foreign hospital. Before purchasing this type of coverage, check with your own health insurance carrier. Find out what type of coverage you have when traveling abroad and if there are any limits. Also, ask if the policy will pay to fly you home or to a country with first-rate medical care.

Accidental Death This travel insurance provides a variety of coverages if you or a family member dies on the trip. If you have a good life insurance plan or made other financial provisions for your loved ones, this may be duplicate insurance. Your credit card company may provide travel-related services and coverage. You can also purchase travel insurance from either a travel agent or you can buy directly from an insurer that specializes in this type of coverage.