How does this work in real life? Let’s say you purchase a travel protection plan, which includes trip cancellation benefits, to protect your upcoming cruise to Alaska.  Five days before departure, you experience a high fever and chest pain. Your doctor diagnoses bacterial pneumonia and advises you to cancel the trip. When you notify the cruise line, they tell you it’s too late to receive a refund for your cruise and that you will forfeit everything you have paid for your cruise.

Without travel protection, you’d lose most of the money you spent on your cruise that was not refundable. Fortunately, a serious, disabling illness can be considered a covered reason for most travel protection policies, which means you can be reimbursed for your prepaid, nonrefundable trip costs. Once you’re feeling better, you gather the required documents — such as your airfare and cruise line receipts and information about any refunds you did or did not receive — and you file a claim with your travel protection company.

Majority of the time, travel protection benefits are reimbursed to after you file a claim, sometimes, this process works a little differently. Travel protection may pay your expenses up front if you require emergency medical treatment or emergency transportation while traveling overseas.