Imagine you’ve spent months planning and booking the perfect vacation. Two days before you’re supposed to leave on your trip, you receive the news that your daughter is in labor and your grandchild will be due any moment. As excited as you were for your vacation, you can't imagine going on a vacation now that your priorities have changed. To be able to cancel your trip and recoup nonrefundable prepaid travel expenses, you need Cancel For Any Reason trip insurance.
What Regular Trip Insurance Doesn't Cover
With a basic trip insurance plan, you’re usually restricted when it comes to what you can cancel and get reimbursed for. Generally, there are only a few circumstances that are covered under a limited number of circumstances, including:
- Natural disasters
- Lost important travel documents, like passports of visas
- Injury or illness
- Bankruptcy of the carrier
While some airlines may make an exception and provide refunds on nonrefundable tickets if you can provide documentation of an emergency, you can't guarantee this, nor can you guarantee that all of the other funds can be recouped.
What if there was a way to ensure that certain prepaid nonrefundable trip costs were covered in the event of a cancellation no matter the reason?
What's Cancel For Any Reason Travel Insurance?
Cancel For Any Reason insurance (CFAR) is the answer to this dilemma. As the name implies, when you purchase CFAR with your insurance plan, you can cancel your trip for absolutely any reason and still receive some type of reimbursement (usually up to 75% of the cost). Whether you have to cancel for a relative's death, or you just want to cancel because of personal preference, this insurance has you covered.
It’s important to note that CFAR trip insurance can't be purchased on its own. It's an add-on benefit for traditional trip insurance plans. Although CFAR increases the total cost of your insurance plan, it's definitely an add-on that's worth the extra price.
What are some Cancel For Any Reason benefits?
Wider coverage for travel-related expenses
Under a basic insurance plan, there’s a limit on what types of travel expenses can be reimbursed in the event of cancellation. However, with CFAR, there’s a larger range of expenses that will be covered. Expenses related to transportation, hotel deposits, vacation and car rentals, and event tickets are often covered.
Flexibility
Cancellation policies under basic travel insurance plans only allow for a few emergencies to qualify for refunds. With CFAR trip insurance, you can rest assured that you're able to cancel for any reason and still receive reimbursements. It doesn't matter if you're dealing with an emergency or have a personal preference to change the trip. You're covered regardless.
Eases Stress
Whether you booked your flight early in advance and need to cancel your trip, or you just have general uncertainty about your trip, having CFAR can ease the stress of coordinating your trip knowing you are covered if you need to cancel.
Scenarios Where CFAR Can Help
For many people, CFAR might not be a necessity but instead a nice to have. However, it is important to consider what trip cancellation insurance does not cover, and why it might be a good option to opt for the CFAR add-on. Here are just a couple of scenarios where CFAR can help:
Pregnancy
Being pregnant while having travel plans can be unpredictable. One day you feel fine, but then you feel suddenly sick the next day. CFAR can protect you in those cases where you feel like you need to stay home.
Imagine you found out that you are pregnant with your first child and want to celebrate by going on a relaxing vacation with your partner. Your hotel, flights, and tours were already planned and paid for, but just a few weeks before your vacation, you realize you do not want to take any risk, especially being newly pregnant. It might seem stressful to be scrambling to cancel all of your plans, but luckily, adding CFAR allows you to have that peace of mind knowing you can cancel if you are not feeling 100% about your trip and still get insured.
Sudden Sicknesses
With cold and flu season, it can be almost inevitable that you might get sick. Now let’s imagine after planning a trip way in advance, you catch the flu a few days before you take flight. You don’t want to travel while sick, and you want to protect yourself and others around you. CFAR can protect your travel costs for illnesses and injuries, even those without a doctor's note, allowing you to cancel your trip with less stress.
Even though trip cancellation because of an illness is covered with travel insurance, you need a doctor's note to potentially receive coverage. Depending on the circumstances, you end up spending more time and money getting that doctor’s note when in reality, it can be as simple as letting your insurance company know that you are cancellingsaving you time and money, and giving you a greater peace of mind.
Work or Personal Conflicts
Overall, anything can happen, and it is all up to how you think CFAR can be useful in your own circumstances. Lastly, let’s imagine your two-week vacation to visit family in Europe was fully approved by your boss. Just a week before your trip, there is a large, timely project that involves your participation at work. This is something you can’t say no to, so you decide to cancel your trip with the intention of postponing it for a later time. With CFAR, you have the freedom to cancel your travel, and still recoup most of your trip costs.
When do I need to purchase CFAR insurance?
Policies are different, so the best practice is to look at your specific policy, which will detail the time limit you have for purchasing this coverage. Generally, however, you must purchase CFAR insurance within 10-21 days of making the initial payment towards your trip. For cruise specific policies, you generally have to purchase this add-on before you've made the final payment towards your vacation. Please note that you can't buy CFAR insurance once your trip has already started.
So really, what's the catch with CFAR insurance?
Although it might seem like it's too good to be true, there isn't a catch to CFAR insurance. You really can cancel your trip for any reason and be covered. All in all, whether you value the flexibility to change plans, or you want added peace of mind, CFAR coverage is a smart addition to your travel insurance purchase. Once you’re ready to plan your next trip, consider adding Cancel For Any Reason insurance to your plan to give yourself the freedom to cancel on your own terms.
Frequently Asked Questions (FAQs)
Is CFAR available on travel health insurance plans?
Cancel For Any Reason (CFAR) is an optional benefit that can be added to some standard Trip Insurance plans, but is not offered on Travel Medical insurance plans. However, if you do need to cancel for any medical reasons, CFAR allows a policyholder to recover up to 75% of their prepaid non-refundable travel expenses.
What is the difference between Cancel For Any Reason (CFAR) and Trip Cancellation insurance?
To be eligible for reimbursement under Trip Cancellation insurance and recoup up to 100% of your non-refundable trip costs, you must cancel for a covered reason listed under the policy details such as illness, death in the family, etc. However, the CFAR benefit allows you to cancel for any other reason that is not stated under the trip cancellation list and still be able to recover about 50-75% of your non-refundable trip costs.
Can I cancel my trip anytime and still receive CFAR benefits?
No, you must cancel your trip within the time frame specified by your travel insurance plan, which is typically no later than 48 hours before your scheduled departure, in order to qualify for a CFAR trip cancellation benefit. If you feel like you need to cancel in the middle of a trip, you might want to consider Interruption For Any Reason (IFAR), which allows you to interrupt your trip for any reason that is not covered by your policy.
What is the initial trip deposit date?
The initial trip deposit date refers to the date when you made your first non-refundable payment or deposit for your trip. This could be a full or partial payment for any travel-related expenses. Examples of non-refundable payments include airline tickets, hotel reservations, cruise bookings, excursions, tours, or event tickets. This date is important when purchasing trip insurance, as certain benefits, such as coverage for trip cancellation coverage, may depend on how soon after the initial trip deposit date the policy is purchased.
What are some covered reasons for cancellations with trip insurance?
Covered reasons for cancellations with trip insurance can include: Sickness, Injury or Death, Felonious Assault, Court Ordered Appearance, Military Duty for Natural Disaster Relief, Jury Duty, Termination/Layoff, Strike, Weather, Hijacking, Terrorist Incident, Traffic Accident, Bankruptcy/Default, Quarantine, Residence Uninhabitable. However, it is recommended to review your specific policy documents for any limits and exclusions for trip cancellation.
Who is eligible to purchase trip insurance plans?
Trip insurance plans can be purchased by both U.S. and non-U.S. residents who are looking to protect their financial trip costs in case of a trip cancellation, interruption, or delay. Trip insurance coverage is available for traveling within the United States and internationally. The insurance must be purchased prior to your scheduled trip departure date.
When should I buy trip insurance?
You should purchase trip insurance as soon as you make your first initial trip payment in order to receive maximum coverage benefits. Time-sensitive benefits, such as CFAR and pre-existing condition waivers are only available typically 14-21 days after you make your initial trip deposit. If you realize at the last minute that you should get trip insurance, it is possible to purchase a policy plan that can protect your trip, but with limited coverage.
