If there is any possibility that a person might have to cancel or change travel plans, there is a need to purchase travel insurance to cover the cost of the trip in case of cancellation.

When there is an odd chance that the airline, cruise line, hotel or resort could go bankrupt between the time of booking the trip and the departure date, it would be wise to buy a travel insurance to cover financial failure.

When planning for tight airline connections for an international destination to board a ship, a person should purchase travel insurance to cover lost luggage as well as missed connections.