What does this mean? (cancel for any reason)

[arhillbilly]

"Provides reimbursement up to 100% of non refundable trip cost for an additional 50% of premium when you cancel for any reason"

 

 

Can someone give me an example? Thanks

 

 

I am wanting to go on a cruise with a group. Cruise leaves in Oct 2012. Nonrefundable deposit is due at booking...$600 for 2 people. Cost of cruise is $2400 for 2 people. Since that is over a year away, I would like to get cancel for any reason insurance since I don't want to lose $600 should something come up (altho what I am finding looks like the insurance is over $300)

[Bill S]

I will take a stab at this.

Example 1: If you purchase cancel-for-any-reason insurance and after you pay the $600 deposit but before you make your final payment, if you cancel "for any reason" the insurance company should reimburse you that $600 non-refundable deposit and any other non-refundable "trip costs" (airfare, perhaps, other cancellation fees for hotels or airfare. etc) you might have incurred.

Example 2: If you purchase cancel-for-any-reason insurance and after you pay the non-refundable $600 deposit and after you make your final payment, if you cancel "for any reason" the insurance company should reimburse you not only that $600 non-refundable deposit, but also any other non-refundable portion of the total cruise fare and other "trip costs" you might have incurred. After final payment has been made, in all likelihood if you cancel you would not be entitled to any refund.

Be sure to read all the terms and conditions of the cruise contract and the insurance contract, before you commit, if at all possible.

The irony of trip insurance is that you are betting that you will have to cancel, and the insurance company is betting that you won't. The insurers usually win the bet. ;) With "cancel for any reason" coverage, however, the odds of cancelling change and that is why the premium is much higher. Remember too, your trip insurance might also offer coverage for trip delays, lost luggage, medical expenses and possibly medical evacuation coverage.

 

Only you can decide if the cost is worth all the potential risks of something happening which could cause you to cancel "for any reason". And you should consider more than losing just the deposit. I hope this helps!

[cruiseco]

How it's handled depends on the plan you purchase. Here's two examples:

 

 

 

Cancellation Penalty Schedule

If Cancellation Penalty Amount Is: Percentage of Penalty Amount Payable Is:

Up to 25% of Trip Cost 100% of Penalty

26% to 50% of Trip Cost 85% of Penalty Amount

Over 50% of Trip Cost 75% of Penalty Amount

 

_________________

 

 

CANCEL FOR ANY REASON

If You cancel Your Covered Trip for any reason not otherwise covered by this plan, the Company will reimburse You for sixty percent (60%) of the prepaid, forfeited, non-refundable payments or deposits You paid for Your Covered Trip provided . . ."

 

_________________

 

 

So with example #1, if you cancel when your penalty is 25% ($600 or the $2400) the insurer would reimburse you the full $600.

 

With example #2 they would reimburse you $360 (60% of $600).

 

Once the full $2400 becomes non-refundable, example #1 would reimburse you 75% ($1800) and example #2 will again reimburse you 60% ($1440)

 

 

Somewhere in every Cancel For Any Reason plan you're looking at you'll find a similar schedule of benefits. Get your calculator out and figure up what you'll be reimbursed for at each point in your booking process. -- after deposit, after final payment. etc. Be sure to include your airfare (if any) in the calculation as all of these plans require you to insure all of your trip costs. So with example #1 while you may be canceling in a situation where your loss (the $600 deposit) is only 25% of the full cruise cost, if you bought a noon-refundable air ticket you're probably going to be in the 25% - 50% of the total trip cost bracket when figuring out what they'll pay (85% of your loss), not 100% of your loss.

 

Also, remember that if you cancel for a COVERED reason, none of the above applies -- they'll reimburse you 100% of your loss.

[arhillbilly]

Thank you both