When the unexpected happens in life, you want to know you are covered. Especially when you spend months planning a trip, the Cancel for Any Reason clause, an optional benefit of travel insurance also referred to as CFAR, gives you the opportunity to cancel your travel plans for reasons not covered in the standard policy. With CFAR, you can bypass the list of typical covered reasons and receive greater freedom and flexibility.
Cannot be Purchased Separately
While you cannot purchase CFAR separately, you can tack it on as an add-on benefit. Nevertheless, you should always examine the clauses carefully. For example, when offered as part of a comprehensive plan, it may only be available if you meet a specific criteria. When you meet all the conditions, most of your policies will reimburse you for 75 percent of the costs associated with the trip unless it has been noted otherwise.
The Requirements of Eligibility
In general, you normally will have to buy the policy within 10 to 21 days of making your initial trip payment if you will be eligible for CFAR. In some cases, a travel insurance company requires that CFAR buyers purchase the entire dollar amount of their travels if they will receive coverage. You also have to watch for additional requirements in the policy.
The Cancel for Any Reason benefit will have have set parameters around when the CFAR period ends. In a lot policies, you have to cancel your plans and notify the insurance company a minimum of 48 hours in advance to your departure. Beyond the 48-hour time frame, you have to cancel for one of the reasons covered under your standard policy. The advantage of a Cancel for Any Reason clause is that it provides you with coverage if you cancel for reasons not listed within the standard coverage. However, it depends on the policy. Always examine the details carefully.
What Will Cancel for Any Reason Cover?
With this coverage, you receive reimbursement for up to the amount covered for a non-refundable trip. Travel experts consider the Cancel for Any Reason coverage a fail-safe for travel insurance buyers. If you worry you may have to cancel your trip, this will cover at least a portion of the expenses. You should, however, understand that the coverage amount varies from between 50 percent to 100 percent. It depends on the plan. Does the Cancel for Any Reason policy make sense? If you believe there’s a strong chance that you will have to cancel, this type of coverage could save your hard-earned money.