hether it’s for a weekend getaway, exhilarating cruise, or extended adventure to Alaska, travel insurance can help vacationers protect their trip investment. Travel insurance can cover a myriad of potential calamities, from lost luggage and travel interruption/cancellation to health emergencies and even accidental death.

There are a multitude of real-life situations in which vacation insurance becomes crucial. For example, if someone loses a piece of luggage containing important medications, travel insurance coverage assists with finding the bag or even filling an emergency prescription. Or say an extended family has been planning a big, annual reunion for months. But right before the event, a key family member gets too sick to go, and everyone decides to cancel. Travel insurance helps people get reimbursed for non-refundable deposits, pre-payments, and other covered expenses.

The significance of travel insurance coverage cannot be overstated. At least not to Steve Judd, president of Alaska Tour & Travel. The tour company offers vacation packages, adventures, hotels, tours, Alaska cruises, and Alaska Railroad and bus trips in Seward, Anchorage, Denali Park, Talkeetna, and Fairbanks. “We recommend to all our guests traveling in Alaska on multi-day packages that they purchase travel insurance,” Judd says.

Alaska is such a large state, he says, and its weather can have a significant impact on transportation, whether it be the Alaska Railroad or highways. And this makes travel insurance coverage in Alaska especially important for vacationers.

Often, though, it is not in Alaska that travel insurance is beneficial, but instead it’s to cover delays en route to Alaska. Airlines regularly have delays in the Lower 48, resulting in passengers arriving late. It’s advantageous for visitors to have travel insurance to help cover the costs of catching up to their itinerary or, in some cases, cover the cost of the items missed due to arrival delays. “Because tourism in Alaska is so seasonal, we often find that tour operators and lodges are not very lenient on last-minute cancellations, so having travel insurance can ease the cost of any last-minute, unforeseen changes to your travel plans,” Judd says.

Alaska Tour & Travel promotes a Cruise, Tour and Travel policy to its clients. According to the company’s website, the policy includes coverage for:

• trip cost cancellation and interruption
• $50,000 medical expense
• $1,000,000 emergency medical transportation
• $1,000 lost, damaged, or stolen baggage or travel documents
• $1,000 trip delay
• $200 baggage delay
• 24-hour emergency hotline

The company typically recommends Travel Guard insurance from AIG Travel. Alaska Tour & Travel clients can contact AIG Travel directly to purchase a travel protection plan. Scott Adamski, head of US field sales with AIG Travel, is a strong advocate of vacation insurance. “Planning a trip to Alaska, or any part of the world, is filled with great adventure, cultural experiences, and memories,” says Adamski, who is based in Point Stevens, Wisconsin. “Unfortunately, challenges may occur before or during the trip. Protection and peace of mind are what a travel insurance product may offer to the traveler.”

AIG Travel offers a suite of travel insurance products to meet the needs of all types of travelers. In general, its products include benefits such as trip cancellation and interruption coverage, accident/sickness/medical expense, emergency evacuation and repatriation, baggage loss or delay, trip delay, missed connection, and other optional coverages.

In addition, the company’s plans all include the AIG Travel 24/7 assistance center, which offers access to AIG doctors and nurses as well as more than 600,000 medical professionals around the globe.

So what type of insurance coverage is most critical for Alaska-bound travelers? It depends on the clients and their specific travel itineraries. A basic insurance plan can be an economical option for people who are traveling on a tight budget yet want coverage in case they have an unforeseen emergency.

However, AIG Travel has found that most clients prefer a more comprehensive package of benefits to provide broad protection while they travel, Adamski says. For example, trip cancellation and interruption is important if a trip is cancelled or interrupted due to covered weather challenges or a covered medical issue prior to departure. On the other hand, medical expense and evacuation may be important to other travelers. However, comprehensive travel insurance can cover a broad spectrum of scenarios. “With a comprehensive plan of benefits, AIG Travel has developed travel insurance packages to accommodate these potential challenges under one policy,” Adamski says.

Travelers tend to appreciate the simplicity a comprehensive plan offers. “Comprehensive plans offer a great range of coverages and benefits without travelers having to pick and choose benefits they may ‘think’ they need,” he explains.

Travelers can also add features to their plan for an extra cost. Add-ons include accidental death benefits for flight only and rental car collision coverage. However, all AIG Travel plans include a 24-hour emergency travel assistance hotline for help with emergency medical requests, flight or hotel re-bookings, and pre-trip information, among other things.

In terms of the cost, travel insurance rates vary based on a number of factors. AIG Travel insurance plan costs depend on the policy and the options that best meet the needs of the client, Adamski says. He adds: “We offer several plans with varying levels of benefits and coverages. In addition, the age of the traveler, trip cost, and resident state are factors in determining rate.”  

Vacation insurance comes in very handy for those travelers who experience unexpected illnesses or injuries and those who need medical transportation or undergo any other medical emergencies when they’re far from home. This is especially true for vacationers who have a higher risk of suffering from a health issue while traveling (such as the elderly or those with chronic illnesses).

The type of medical problem and whether a suitable hospital is even available are also deciding factors that can make vacation insurance a must-have for anyone visiting Alaska, according to LifeMed Alaska Chief Operating Officer Steve Heyano. LifeMed Alaska is a ground and air ambulance service with base locations in Anchorage, Bethel, Dutch Harbor, Fairbanks, Juneau, Palmer, and Soldotna. The company has skilled medical crews and a fleet of Learjets, turboprops, and helicopters to assist people with medical emergencies.

Most people don’t anticipate needing emergency medical care or medical evacuation services while vacationing. And the probability of either of these scenarios happening is even more likely in Alaska because Alaska does not have a Level 1 trauma center or certain specialty services, plus many towns in the remote parts of the state are not connected by a road system. So there’s a greater chance that Alaska residents and visitors would need to be medically evacuated to a suitable facility in Seattle if they experience a serious medical emergency.

Medical transportation can cost thousands of dollars per trip, depending on the distance the patient must be transported, according to Heyano. Emergency medical insurance coverage can serve as secondary coverage to fill gaps that may be left by the patient’s primary health insurance. However, when assisting patients with a medical emergency, cost is not the immediate issue for LifeMed Alaska—it’s saving lives. “We focus on safely transporting seriously ill or injured patients while providing life-saving medical care,” Heyano says.

After LifeMed Alaska provides services, the company bills the patient’s primary insurance within 24 hours of transport. The patient is then responsible for paying his or her portion of the cost for the service. LifeMed Alaska offers a $49-per-year Family Membership program that anyone can purchase to cover out-of-pocket expenses for medically-necessary air or ground transport provided by the company. “LifeMed Alaska works directly with your insurance company and accepts their reimbursement as payment in full for our members,” Heyano says.

Its Family Membership program essentially covers the “patient responsibility,” or patient co-pay, for medical transportation services. But what happens with vacationers who need these services but do not have the membership program or insurance? LifeMed Alaska offers financial assistance and charity plans that can help ease that financial burden.

Inclement weather and other adverse circumstances can cause flights to get delayed or canceled, which makes flight insurance vital for those traveling by air. Personal situations including illness, traffic accidents, job loss, court orders and other disruptions can also impede travel plans. That’s why Alaska Airlines prominently promotes travel insurance on its website, stating, “Whether you’ve already booked your flight or your trip is still in the planning stages, consider travel insurance to protect you if the unexpected happens.”

Insurance from Alaska Airlines’ preferred provider, Allianz Global Assistance, can compensate travelers if they have to cancel their flight or need help with certain unforeseen expenses. Allianz Global Assistance USA—a consumer specialty insurance and assistance company with operation centers in thirty-five countries—offers a broad portfolio of travel insurance products and services. Whether for business or pleasure, cruise or tour, international or domestic—its products are sold through the world’s largest airlines and travel suppliers.

Travelers have several options for purchasing insurance for an Alaska Airlines flight. They can choose insurance while buying tickets or add coverage after purchasing tickets. Either way, travel insurance coverage from Allianz Global Assistance can include protection for trip cancellation/interruption, emergency medical transportation, emergency medical/dental, lost/stolen/delayed baggage, travel delays, missed connections, and rental car damage.

Allianz Global Assistance’s most affordable coverage is the OneTrip Cancellation Plus Plan, which includes trip cancellation and trip interruption coverage, as well as travel delay coverage and 24-hour assistance services. Travelers who are more concerned about being prepared for a medical emergency might want to spring for a higher-coverage plan such as OneTrip Basic, Prime, Premier, or Medical Emergency. These single-trip plans include emergency medical and dental benefits as well as emergency medical transportation benefits.

The OneTrip Basic Plan, for example, includes emergency medical benefits up to $10,000 and emergency medical transportation benefits up to $50,000. The next step up is the OneTrip Prime Plan, which offers emergency medical and dental benefits up to $25,000 and emergency medical transportation benefits up to $500,000. And the OneTrip Emergency Medical Plan is a comprehensive and flexible option. It includes up to $100,000 in emergency medical benefits ($50,000 for accidents and $50,000 for illness) and up to $250,000 in emergency medical transportation benefits.

For frequent travelers, an annual travel insurance plan can be a valuable money- and time-saver. Allianz offers a number of annual multi-trip plans, all of which include collision/loss damage insurance for rental cars. For example, AllTrips Basic includes post-departure benefits like emergency medical benefits and baggage theft/loss coverage, but not trip cancellation. AllTrips Prime provides post-departure benefits, plus up to $2,000 in trip interruption/cancellation coverage. And AllTrips Executive offers a diversity of benefits such as business equipment coverage and up to $50,000 in emergency medical benefits.

When choosing travel insurance, experts say it’s important to keep in mind that the most convenient time to purchase insurance is right after making travel arrangements. This helps ensure that the selected coverage plan stays within the traveler’s allotted budget. It also keeps the traveler from forgetting to obtain coverage before the trip begins. Also, each travel insurance package provides a different degree of protection based on the most common travel concerns. No matter what type of insurance a traveler chooses, the ultimate goal is peace of mind, so visitors to Alaska or any other dream destination can truly enjoy their vacation.