Travel Insurance: What It Is and Why You Need It - Consumer Editor Meg Green explains what travel insurance is, why it is needed, and how to get it. Includes details of various travel insurance options, and potential pitfalls to avoid.

Financial loss due to cancellation of a trip, loss of baggage or personal belongings, emergency evacuation or medical assistance due to injury or illness, and accidental death.

You can buy a comprehensive policy or only the coverage you think you need. For example, trip cancellation or trip interruption insurance reimburses an insured for nonrefundable trip payments or deposits. Trip cancellation coverage can be triggered if you become sick, a family member dies, your home becomes inhabitable, or if any other calamity listed in the policy occurs. Coverage is also available for when a travel provider fails to provide the service, for delays and missed connections, terrorism, baggage delays, and rental car protection. Finally, insurance can cover accidental death and dismemberment, or losses while on a common carrier - plane, train, bus, ship.

Anyone who wants the protection offered. Your comprehensive health insurance may not cover treatment in a foreign country, and emergency evacuations and transportation can be costly.

People who already have coverage with life, credit card, auto or homeowners insurance policies. If you are affluent, you may choose to self-insure.

Before leaving on a trip. This can be far in advance; some policies cover an entire year of travel or multiple trips.

Generally a single payment at the time of purchase. Trip cancellation insurance usually runs 5% to 7% of the cost of the trip. Other considerations may be used to determine prices of other coverages.