Most policies bundle a combination of coverage for trip cancellation, interruption, or delay, along with medical insurance, and a 24-hour assistance line in case of emergency. Many also throw in extras such as coverage for lost baggage or travel documents. Medical evacuation insurance is often an add-on. But to make a smart buy, you"ll first need to become well versed in travel insurance lingo.

Trip Cancellation and Interruption (TCI): Covers nonrefundable expenses if your trip is canceled or interrupted due to bad weather, canceled flights, or because you, a traveling companion, or close family member at home becomes ill.

Trip Delay: Reimburses nonrefundable costs if your trip is delayed such as the expense of changing your flight if you get sick, or the price of a hotel room and meals if your connecting flight gets canceled, leaving you stranded overnight. .

Travel Medical Insurance: Covers medical expenses if you are injured or become ill during your vacation.

Emergency Medical Evacuation: If you have an accident or become ill, evacuation insurance provides land or air transportation to the nearest medical facility that can provide the care you need, or back to the United States, if necessary.

Supplier Default: Reimburses money lost if you"ve paid for a trip with a tour operator, cruise line, or other travel supplier that goes into default or bankruptcy.

Baggage and Personal Effects Loss or Delay: Covers costs related to lost, stolen, damaged, or delayed items during your travels.

Flight Insurance: Covers accidental death while flying.

24-Hour Assistance: An around-the-clock hotline that can help you arrange medical care, find an English-speaking doctor, provide transportation, and notify family and friends in case of emergency.