Is Flight Insurance Worth It? A Boomer’s Guide to Travel Protection

You’ve been planning this trip for months. A week-long Alaskan cruise to celebrate your 50th wedding anniversary. As you’re about to book your flights, a pop-up appears: “Protect your trip with flight insurance?” You pause, cursor hovering over the “yes” button. 

Is flight insurance worth the extra cost, or is it another unnecessary expense?

In 2023, many major airlines had 30% and higher delay rates. For baby boomers, who take an average of 4-5 leisure trips each year (an average of 99 days out of the year traveling), these disruptions can mean more than just inconvenience—they can lead to significant financial losses.

Enter flight insurance. 

This travel protection option promises to safeguard your airfare investment, typically for about 5-10% of your ticket cost. But is it worth it, especially for those of us in our golden years?

Let’s review everything about flight insurance, including what it covers, costs, and whether it’s suitable for baby boomers. Then, you’ll have all the information you need to decide before your next trip.

What is Flight Insurance

Flight insurance is a specific type of travel protection designed to cover risks associated with air travel. It typically provides coverage for:

• Trip cancellations or interruptions.
• Flight delays.
• Missed connections.
• Lost or delayed baggage.

Unlike more comprehensive travel insurance policies, flight insurance focuses primarily on the air travel portion of your trip.

Flight Insurance vs. General Travel Insurance

While flight insurance and general travel insurance may seem similar, there are key differences:

Flight Insurance:

• Covers mainly air travel-related issues.
• Usually less expensive.
• Offers more limited coverage.

General Travel Insurance:

• Covers a wide range of travel-related issues (including non-flight transportation, accommodations, and activities).
• Typically more expensive.
• Provides more comprehensive coverage, often including medical emergencies.

For many baby boomers, the choice between these options depends on the nature of the trip and individual travel concerns.

Types of Flight Insurance

• Airline-offered insurance: This is the pop-up you often see when booking your flight directly through an airline’s website. It’s convenient but may have more limitations than other options.
• Third-party insurance providers: Insurance companies like Allianz, Travel Guard, or Berkshire Hathaway offer standalone flight protection policies. These often provide more comprehensive coverage than airline-offered options.
• Credit card travel benefits: Many premium credit cards include some form of travel protection, including coverage for flight-related issues. However, the extent of coverage can vary significantly between cards.

Understanding these options is the first step in determining whether flight insurance is a worthwhile investment for your travel plans. In the next section, we’ll explore the specific protections flight insurance typically offers and what it doesn’t cover.

What Does Flight Insurance Cover?

Understanding what flight insurance covers—and doesn’t—is crucial in determining whether it’s worth the investment. While coverage can vary between providers, most policies offer protection in several key areas.

Trip Cancellation and Interruption

This is often the primary reason travelers consider flight insurance. If you need to cancel or cut short your trip for a covered reason, your policy may reimburse you for non-refundable flight costs.

Covered reasons typically include:

• Illness or injury (your own or that of a close family member).
• Severe weather or natural disasters.
• Jury duty or legal obligations.
• Bankruptcy of your travel supplier.

It’s important to note that “cancel for any reason” coverage is usually not included in standard flight insurance policies. This type of coverage often requires a separate, more expensive policy.

Flight Delays and Missed Connections

If your flight is significantly delayed (usually 3-12 hours, depending on the policy), flight insurance can provide benefits such as:

• Reimbursement for meals and accommodations.
• Coverage for rebooking fees if you miss a connecting flight.

For example, if your flight to Miami is delayed, causing you to miss your cruise ship’s departure, flight insurance could cover the cost of catching up with the ship at its next port.

Baggage Issues

Lost, damaged, or delayed baggage can ruin any trip. Flight insurance typically offers:

• Reimbursement for essential items if your baggage is delayed (usually after 12-24 hours).
• Compensation for lost or damaged belongings.

Remember, there are usually per-item and total payout limits. That vintage Rolex might not be fully covered, so consider additional protection for high-value items.

Medical Emergencies During Travel

While not as comprehensive as travel medical insurance, some flight insurance policies offer limited coverage for medical emergencies during your trip. This can include:

• Emergency medical treatment.
• Medical evacuation to the nearest suitable medical facility.

This coverage can be precious for international travel, where your regular health insurance may not apply.

What’s Typically Not Covered in Flight Insurance

Understanding exclusions is just as important as knowing what’s covered. 

Common exclusions include:

• Pre-existing medical conditions: Most policies won’t cover cancellations due to flare-ups of known health issues.
• Fear of travel: Deciding not to travel due to concerns about safety or health risks usually isn’t covered.
• Foreseeable events: If you buy insurance after a hurricane is forecast for your destination, related cancellations likely won’t be covered.
• Mistakes or oversights: Missing your flight because you overslept or forgetting to renew your passport aren’t covered reasons for cancellation.
• Alcohol or drug-related incidents: Any issues arising from intoxication typically aren’t covered.

Always read the fine print of your policy to understand exactly what is and isn’t covered. For baby boomers with specific health concerns or travel needs, it may be worth considering more comprehensive travel insurance options.

Average Costs of Flight Insurance

Generally, flight insurance costs between 5% to 10% of your total trip cost. However, this can vary depending on the provider and the level of coverage.

For example:

• A basic flight insurance policy for a $500 domestic flight might cost between $25 to $50.
• For a $3,000 international flight, you might pay anywhere from $150 to $300 for insurance.

Factors Affecting the Price

• Trip duration: Longer trips usually mean higher insurance costs, as there’s more time for something to go wrong.
• Destination: Travel to certain destinations, particularly those with higher medical costs or greater risks of travel disruptions, can increase insurance prices.
• Coverage limits: Policies with higher coverage limits or additional benefits will cost more.
• Type of coverage: Basic flight insurance will be less expensive than more comprehensive travel insurance policies.

What You Pay When You Don’t Opt For Flight Insurance

• A last-minute flight cancellation could cost you the full price of your non-refundable ticket.
• A missed connection requiring an overnight stay could mean paying for a hotel room and meals out of pocket.
• Lost luggage might necessitate buying new clothes and toiletries, which can quickly add up.

For instance, if you’re taking a $2,000 flight to Europe, a $100-$200 insurance policy might seem more reasonable when you consider that without it, you could potentially lose the entire $2,000 if you need to cancel for a covered reason.

An Example of Flight Insurance Cost/Benefit

• Trip: 10-day European vacation
• Flight cost: $1,500
• Traveler age: 65

Basic flight insurance might cost around $75-$150 for this trip, while a more comprehensive travel insurance policy could run $150-$300.

Remember, while flight insurance is generally less expensive, it offers more limited coverage than comprehensive travel insurance.

Is Flight Insurance Worth It for Baby Boomers?

As with any financial decision, weighing the advantages and disadvantages of flight protection is crucial. Let’s break down the pros and cons, focusing on considerations relevant to baby boomers.

Advantages of Flight Insurance

• Financial Protection: Flight insurance can safeguard your investment in non-refundable tickets, which is especially valuable for more expensive flights or when booking multiple connecting flights.
• Medical Coverage for International Travel: Some policies offer limited medical coverage, which can be crucial when traveling abroad where your regular health insurance may not apply.
• Peace of Mind: For many travelers, particularly those with health concerns or complex itineraries, the assurance that they’re protected against unforeseen circumstances can be invaluable.
• Assistance Services: Many flight insurance policies include 24/7 travel assistance services, which can be particularly helpful for navigating travel disruptions or emergencies in unfamiliar locations.

Disadvantages of Flight Insurance

• Additional Cost: Flight insurance increases travel expenses, which may not be justified for shorter or less expensive trips.
• Overlap with Existing Coverage: Some benefits offered by flight insurance might already be covered by your credit card or existing health insurance policy.
• Limited Coverage: Flight insurance typically offers more restricted coverage than comprehensive travel insurance policies.
• Claim Process: Filing a claim can sometimes be complex and time-consuming, which might be frustrating for some travelers.

When Should Baby Boomers Consider Flight Insurance?

While individual circumstances vary, here are some situations where flight insurance might be particularly worth considering for baby boomers:

• High-Cost or Luxury Trips: If you’re spending a fortune on a dream vacation or a once-in-a-lifetime journey, protecting your investment becomes more crucial.
• International Travel: When venturing abroad, especially to destinations where healthcare is expensive or your regular insurance doesn’t apply, flight insurance with medical coverage can be valuable.
• Complex Itineraries: If your trip involves multiple flights or connections, the risk of disruption increases, making insurance more appealing.
• Travel During Unstable Seasons: If you’re traveling during hurricane season or to regions with unpredictable weather, flight insurance can protect against weather-related cancellations.
• Health Concerns: For those with existing health conditions (even stable ones), having coverage for potential medical issues or trip cancellations due to sudden illness can be reassuring.

Tips for Purchasing Flight Insurance

If you decide flight insurance is right for your trip, keep these tips in mind:

• Read the Fine Print: Understand precisely what is and isn’t covered before purchasing.
• Compare Multiple Providers: Don’t settle for the first option presented. Shop around to find the best coverage for your needs.
• Consider Annual Plans: An annual policy might be more cost-effective than individual trip policies if you travel frequently.
• Buy Early: Purchasing insurance soon after booking your flight can provide the longest coverage period.
• Understand Pre-existing Condition Clauses: If you have health concerns, consider how the policy treats pre-existing conditions.

Special Considerations for Baby Boomer Travelers

As a baby boomer, there are some unique factors to consider when evaluating flight insurance:

• Pre-existing Condition Coverage: Look for policies that offer a waiver for pre-existing conditions, which can be crucial for older travelers.
• Age-Related Pricing: Be aware that premiums often increase with age. Compare multiple providers to find the best rates.
• Coverage for Traveling Companions: If you’re traveling with grandchildren or other family members, check if the policy also covers cancellations due to their illnesses.
• Technology Considerations: Many insurers now offer apps and online tools. If you’re comfortable with technology, these can make managing your policy and filing claims easier.

Navigating Your Flight Insurance Decision

Whether flight insurance is worth it depends on your circumstances, travel plans, and risk tolerance. For many baby boomers, the peace of mind and financial protection of flight insurance can enhance the travel experience.

Consider your trip details carefully:

• Are you traveling internationally?
• Do you have pre-existing health conditions?
• Is your trip during a potentially disruptive season?
• How much are you investing in your airfare?

If you answer yes to one or more of these questions, flight insurance might be a worthwhile investment.

Remember, the goal is to travel with confidence and enjoy your journey. Whether you purchase flight insurance or not, being informed about your options is the first step to a worry-free trip.

Before your next adventure takes flight, evaluate your needs, compare your options, and choose the best travel style. Safe travels!