trip life insurance

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Life Insurance in Travel Insurance: How Does it Work?

Last Updated: April 17, 2013 October 13, 2023

In addition to Trip Cancellation and Emergency Medical benefits, life insurance coverage is another concern for travelers. Depending on the policy, some travel insurance providers may already include life insurance benefits. They may also be offered as an additional upgrade to a travel insurance policy. There are three types of life insurance benefits which can be purchased separately or in combination with each other.

Life Insurance – Accidental Death – This benefit provides coverage for accidental loss of life or limb while traveling at any time during the trip. Keep in mind that this benefit only pays in the event of an accident. It  typically doesn’t cover any loss resulting from Pre-Existing Conditions or self-inflicted injury.

Life Insurance – Common Carrier – Typically, this coverage pays in the event of death or dismemberment while traveling on ticketed public transportation. This can include planes, trains, cruise ships or buses.

Life Insurance – Air Flight Accident – This benefit provides coverage for accidental death or dismemberment during a flight only. A traveler would need to be a passenger on a regularly scheduled airline for benefits to apply.

If travelers select policies with all three life insurance options it does not mean they would receive multiple payouts. Instead, if an accidental death or dismemberment case were to fall under multiple categories, only the higher payout would be given.

As with any travel insurance policy, it is important to look closely at the policy certificate to understand what will be covered and what is excluded.

The best travel insurance policies and providers

It's easy to dismiss the value of travel insurance until you need it.

Many travelers have strong opinions about whether you should buy travel insurance . However, the purpose of this post isn't to determine whether it's worth investing in. Instead, it compares some of the top travel insurance providers and policies so you can determine which travel insurance option is best for you.

Of course, as the coronavirus remains an ongoing concern, it's important to understand whether travel insurance covers pandemics. Some policies will cover you if you're diagnosed with COVID-19 and have proof of illness from a doctor. Others will take coverage a step further, covering additional types of pandemic-related expenses and cancellations.

Know, though, that every policy will have exclusions and restrictions that may limit coverage. For example, fear of travel is generally not a covered reason for invoking trip cancellation or interruption coverage, while specific stipulations may apply to elevated travel warnings from the Centers for Disease Control and Prevention.

Interested in travel insurance? Visit InsureMyTrip.com to shop for plans that may fit your travel needs.

So, before buying a specific policy, you must understand the full terms and any special notices the insurer has about COVID-19. You may even want to buy the optional cancel for any reason add-on that's available for some comprehensive policies. While you'll pay more for that protection, it allows you to cancel your trip for any reason and still get some of your costs back. Note that this benefit is time-sensitive and has other eligibility requirements, so not all travelers will qualify.

In this guide, we'll review several policies from top travel insurance providers so you have a better understanding of your options before picking the policy and provider that best address your wants and needs.

The best travel insurance providers

To put together this list of the best travel insurance providers, a number of details were considered: favorable ratings from TPG Lounge members, the availability of details about policies and the claims process online, positive online ratings and the ability to purchase policies in most U.S. states. You can also search for options from these (and other) providers through an insurance comparison site like InsureMyTrip .

When comparing insurance providers, I priced out a single-trip policy for each provider for a $2,000, one-week vacation to Istanbul . I used my actual age and state of residence when obtaining quotes. As a result, you may see a different price — or even additional policies due to regulations for travel insurance varying from state to state — when getting a quote.

AIG Travel Guard

AIG Travel Guard receives many positive reviews from readers in the TPG Lounge who have filed claims with the company. AIG offers three plans online, which you can compare side by side, and the ability to examine sample policies. Here are three plans for my sample trip to Turkey.

AIG Travel Guard also offers an annual travel plan. This plan is priced at $259 per year for one Florida resident.

Additionally, AIG Travel Guard offers several other policies, including a single-trip policy without trip cancellation protection . See AIG Travel Guard's COVID-19 notification and COVID-19 advisory for current details regarding COVID-19 coverage.

Preexisting conditions

Typically, AIG Travel Guard wouldn't cover you for any loss or expense due to a preexisting medical condition that existed within 180 days of the coverage effective date. However, AIG Travel Guard may waive the preexisting medical condition exclusion on some plans if you meet the following conditions:

• You purchase the plan within 15 days of your initial trip payment.
• The amount of coverage you purchase equals all trip costs at the time of purchase. You must update your coverage to insure the costs of any subsequent arrangements that you add to your trip within 15 days of paying the travel supplier for these additional arrangements.
• You must be medically able to travel when you purchase your plan.

Standout features

• The Deluxe and Preferred plans allow you to purchase an upgrade that lets you cancel your trip for any reason. However, reimbursement under this coverage will not exceed 50% or 75% of your covered trip cost.
• You can include one child (age 17 and younger) with each paying adult for no additional cost on most single-trip plans.
• Other optional upgrades, including an adventure sports bundle, a baggage bundle, an inconvenience bundle, a pet bundle, a security bundle and a wedding bundle, are available on some policies. So, an AIG Travel Guard plan may be a good choice if you know you want extra coverage in specific areas.

Purchase your policy here: AIG Travel Guard .

Allianz Travel Insurance

Allianz is one of the most highly regarded providers in the TPG Lounge, and many readers found the claim process reasonable. Allianz offers many plans, including the following single-trip plans for my sample trip to Turkey.

If you travel frequently, it may make sense to purchase an annual multi-trip policy. For this plan, all of the maximum coverage amounts in the table below are per trip (except for the trip cancellation and trip interruption amounts, which are an aggregate limit per policy). Trips typically must last no more than 45 days, although some plans may cover trips of up to 90 days.

See Allianz's coverage alert for current information on COVID-19 coverage.

Most Allianz travel insurance plans may cover preexisting medical conditions if you meet particular requirements. For the OneTrip Premier, Prime and Basic plans, the requirements are as follows:

• You purchased the policy within 14 days of the date of the first trip payment or deposit.
• You were a U.S. resident when you purchased the policy.
• You were medically able to travel when you purchased the policy.
• On the policy purchase date, you insured the total, nonrefundable cost of your trip (including arrangements that will become nonrefundable or subject to cancellation penalties before your departure date). If you incur additional nonrefundable trip expenses after purchasing this policy, you must insure them within 14 days of their purchase.
• Allianz offers reasonably priced annual policies for independent travelers and families who take multiple trips lasting up to 45 days (or 90 days for select plans) per year.
• Some Allianz plans provide the option of receiving a flat reimbursement amount without receipts for trip delay and baggage delay claims. Of course, you can also submit receipts to get up to the maximum refund.
• For emergency transportation coverage, you or someone on your behalf must contact Allianz, and Allianz must then make all transportation arrangements in advance. However, most Allianz policies provide an option if you cannot contact the company: Allianz will pay up to what it would have paid if it had made the arrangements.

Purchase your policy here: Allianz Travel Insurance .

American Express Travel Insurance

American Express Travel Insurance offers four different package plans and a build-your-own coverage option. You don't have to be an American Express cardholder to purchase this insurance. Here are the four package options for my sample weeklong trip to Turkey. Unlike some other providers, Amex won't ask for your travel destination on the initial quote (but will when you purchase the plan).

Amex's build-your-own coverage plan is unique because you can purchase just the coverage you need. For most types of protection, you can even select the coverage amount that works best for you.

The prices for the packages and the build-your-own plan don't increase for longer trips — as long as the trip cost remains constant. However, the emergency medical and dental benefit is only available for your first 60 days of travel.

Typically, Amex won't cover any loss you incur because of a preexisting medical condition that existed within 90 days of the coverage effective date. However, Amex may waive its preexisting-condition exclusion if you meet both of the following requirements:

• You must be medically able to travel at the time you pay the policy premium.
• You pay the policy premium within 14 days of making the first covered trip deposit.
• Amex's build-your-own coverage option allows you to only purchase — and pay for — the coverage you need.
• Coverage on long trips doesn't cost more than coverage for short trips, making this policy ideal for extended getaways. However, the emergency medical and dental benefit only covers your first 60 days of travel.
• American Express Travel Insurance can protect travel expenses you purchase with Amex Membership Rewards points in the Pay with Points program (as well as travel expenses bought with cash, debit or credit). However, travel expenses bought with other types of points and miles aren't covered.

Purchase your policy here: American Express Travel Insurance .

GeoBlue is different from most other providers described in this piece because it only provides medical coverage while you're traveling internationally and does not offer benefits to protect the cost of your trip. There are many different policies. Some require you to have primary health insurance in the U.S. (although it doesn't need to be provided by Blue Cross Blue Shield), but all of them only offer coverage while traveling outside the U.S.

Two single-trip plans are available if you're traveling for six months or less. The Voyager Choice policy provides coverage (including medical services and medical evacuation for a sudden recurrence of a preexisting condition) for trips outside the U.S. to travelers who are 95 or younger and already have a U.S. health insurance policy.

The Voyager Essential policy provides coverage (including medical evacuation for a sudden recurrence of a preexisting condition) for trips outside the U.S. to travelers who are 95 or younger, regardless of whether they have primary health insurance.

In addition to these options, two multi-trip plans cover trips of up to 70 days each for one year. Both policies provide coverage (including medical services and medical evacuation for preexisting conditions) to travelers with primary health insurance.

Be sure to check out GeoBlue's COVID-19 notices before buying a plan.

Most GeoBlue policies explicitly cover sudden recurrences of preexisting conditions for medical services and medical evacuation.

• GeoBlue can be an excellent option if you're mainly concerned about the medical side of travel insurance.
• GeoBlue provides single-trip, multi-trip and long-term medical travel insurance policies for many different types of travel.

Purchase your policy here: GeoBlue .

IMG offers various travel medical insurance policies for travelers, as well as comprehensive travel insurance policies. For a single trip of 90 days or less, there are five policy types available for vacation or holiday travelers. Although you must enter your gender, males and females received the same quote for my one-week search.

You can purchase an annual multi-trip travel medical insurance plan. Some only cover trips lasting up to 30 or 45 days, but others provide coverage for longer trips.

See IMG's page on COVID-19 for additional policy information as it relates to coronavirus-related claims.

Most plans may cover preexisting conditions under set parameters or up to specific amounts. For example, the iTravelInsured Travel LX travel insurance plan shown above may cover preexisting conditions if you purchase the insurance within 24 hours of making the final payment for your trip.

For the travel medical insurance plans shown above, preexisting conditions are covered for travelers younger than 70. However, coverage is capped based on your age and whether you have a primary health insurance policy.

• Some annual multi-trip plans are modestly priced.
• iTravelInsured Travel LX may offer optional cancel for any reason and interruption for any reason coverage, if eligible.

Purchase your policy here: IMG .

Travelex Insurance

Travelex offers three single-trip plans: Travel Basic, Travel Select and Travel America. However, only the Travel Basic and Travel Select plans would be applicable for my trip to Turkey.

See Travelex's COVID-19 coverage statement for coronavirus-specific information.

Typically, Travelex won't cover losses incurred because of a preexisting medical condition that existed within 60 days of the coverage effective date. However, the Travel Select plan may offer a preexisting condition exclusion waiver. To be eligible for this waiver, the insured traveler must meet all the following conditions:

• You purchase the plan within 15 days of the initial trip payment.
• The amount of coverage purchased equals all prepaid, nonrefundable payments or deposits applicable to the trip at the time of purchase. Additionally, you must insure the costs of any subsequent arrangements added to the same trip within 15 days of payment or deposit.
• All insured individuals are medically able to travel when they pay the plan cost.
• The trip cost does not exceed the maximum trip cost limit under trip cancellation as shown in the schedule per person (only applicable to trip cancellation, interruption and delay).
• Travelex's Travel Select policy can cover trips lasting up to 364 days, which is longer than many single-trip policies.
• Neither Travelex policy requires receipts for trip and baggage delay expenses less than $25.
• For emergency evacuation coverage, you or someone on your behalf must contact Travelex and have Travelex make all transportation arrangements in advance. However, both Travelex policies provide an option if you cannot contact Travelex: Travelex will pay up to what it would have paid if it had made the arrangements.

Purchase your policy here: Travelex Insurance .

Seven Corners

Seven Corners offers a wide variety of policies. Here are the policies that are most applicable to travelers on a single international trip.

Seven Corners also offers many other types of travel insurance, including an annual multi-trip plan. You can choose coverage for trips of up to 30, 45 or 60 days when purchasing an annual multi-trip plan.

See Seven Corner's page on COVID-19 for additional policy information as it relates to coronavirus-related claims.

Typically, Seven Corners won't cover losses incurred because of a preexisting medical condition. However, the RoundTrip Choice plan offers a preexisting condition exclusion waiver. To be eligible for this waiver, you must meet all of the following conditions:

• You buy this plan within 20 days of making your initial trip payment or deposit.
• You or your travel companion are medically able and not disabled from travel when you pay for this plan or upgrade your plan.
• You update the coverage to include the additional cost of subsequent travel arrangements within 15 days of paying your travel supplier for them.
• Seven Corners offers the ability to purchase optional sports and golf equipment coverage. If purchased, this extra insurance will reimburse you for the cost of renting sports or golf equipment if yours is lost, stolen, damaged or delayed by a common carrier for six or more hours. However, Seven Corners must authorize the expenses in advance.
• You can add cancel for any reason coverage or trip interruption for any reason coverage to RoundTrip plans. Although some other providers offer cancel for any reason coverage, trip interruption for any reason coverage is less common.
• Seven Corners' RoundTrip Choice policy offers a political or security evacuation benefit that will transport you to the nearest safe place or your residence under specific conditions. You can also add optional event ticket registration fee protection to the RoundTrip Choice policy.

Purchase your policy here: Seven Corners .

World Nomads

World Nomads is popular with younger, active travelers because of its flexibility and adventure-activities coverage on the Explorer plan. Unlike many policies offered by other providers, you don't need to estimate prepaid costs when purchasing the insurance to have access to trip interruption and cancellation insurance.

World Nomads offers two single-trip plans.

World Nomads has a page dedicated to coronavirus coverage , so be sure to view it before buying a policy.

World Nomads won't cover losses incurred because of a preexisting medical condition (except emergency evacuation and repatriation of remains) that existed within 90 days of the coverage effective date. Unlike many other providers, World Nomads doesn't offer a waiver.

• World Nomads' policies cover more adventure sports than most providers, so activities such as bungee jumping are included. The Explorer policy covers almost any adventure sport, including skydiving, stunt flying and caving. So, if you partake in adventure sports while traveling, the Explorer policy may be a good fit.
• World Nomads' policies provide nonmedical evacuation coverage for transportation expenses if there is civil or political unrest in the country you are visiting. The coverage may also transport you home if there is an eligible natural disaster or a government expels you.

Purchase your policy here: World Nomads .

Other options for buying travel insurance

This guide details the policies of eight providers with the information available at the time of publication. There are many options when it comes to travel insurance, though. To compare different policies quickly, you can use a travel insurance aggregator like InsureMyTrip to search. Just note that these search engines won't show every policy and every provider, and you should still research the provided policies to ensure the coverage fits your trip and needs.

You can also purchase a plan through various membership associations, such as USAA, AAA or Costco. Typically, these organizations partner with a specific provider, so if you are a member of any of these associations, you may want to compare the policies offered through the organization with other policies to get the best coverage for your trip.

Related: Should you get travel insurance if you have credit card protection?

Is travel insurance worth getting?

Whether you should purchase travel insurance is a personal decision. Suppose you use a credit card that provides travel insurance for most of your expenses and have medical insurance that provides adequate coverage abroad. In that case, you may be covered enough on most trips to forgo purchasing travel insurance.

However, suppose your medical insurance won't cover you at your destination and you can't comfortably cover a sizable medical evacuation bill or last-minute flight home . In that case, you should consider purchasing travel insurance. If you travel frequently, buying an annual multi-trip policy may be worth it.

What is the best COVID-19 travel insurance?

There are various aspects to keep in mind in the age of COVID-19. Consider booking travel plans that are fully refundable or have modest change or cancellation fees so you don't need to worry about whether your policy will cover trip cancellation. This is important since many standard comprehensive insurance policies won't reimburse your insured expenses in the event of cancellation if it's related to the fear of traveling due to COVID-19.

However, if you book a nonrefundable trip and want to maintain the ability to get reimbursed (up to 75% of your insured costs) if you choose to cancel, you should consider buying a comprehensive travel insurance policy and then adding optional cancel for any reason protection. Just note that this benefit is time-sensitive and has eligibility requirements, so not all travelers will qualify.

Providers will often require CFAR purchasers insure the entire dollar amount of their travels to receive the coverage. Also, many CFAR policies mandate that you must cancel your plans and notify all travel suppliers at least 48 hours before your scheduled departure.

Likewise, if your primary health insurance won't cover you while on your trip, it's essential to consider whether medical expenses related to COVID-19 treatment are covered. You may also want to consider a MedJet medical transport membership if your trip is to a covered destination for coronavirus-related evacuation.

Ultimately, the best pandemic travel insurance policy will depend on your trip details, travel concerns and your willingness to self-insure. Just be sure to thoroughly read and understand any terms or exclusions before purchasing.

What are the different types of travel insurance?

Whether you purchase a comprehensive travel insurance policy or rely on the protections offered by select credit cards, you may have access to the following types of coverage:

• Baggage delay protection may reimburse for essential items and clothing when a common carrier (such as an airline) fails to deliver your checked bag within a set time of your arrival at a destination. Typically, you may be reimbursed up to a particular amount per incident or per day.
• Lost/damaged baggage protection may provide reimbursement to replace lost or damaged luggage and items inside that luggage. However, valuables and electronics usually have a relatively low maximum benefit.
• Trip delay reimbursement may provide reimbursement for necessary items, food, lodging and sometimes transportation when you're delayed for a substantial time while traveling on a common carrier such as an airline. This insurance may be beneficial if weather issues (or other covered reasons for which the airline usually won't provide compensation) delay you.
• Trip cancellation and interruption protection may provide reimbursement if you need to cancel or interrupt your trip for a covered reason, such as a death in your family or jury duty.
• Medical evacuation insurance can arrange and pay for medical evacuation if deemed necessary by the insurance provider and a medical professional. This coverage can be particularly valuable if you're traveling to a region with subpar medical facilities.
• Travel accident insurance may provide a payment to you or your beneficiary in the case of your death or dismemberment.
• Emergency medical insurance may provide payment or reimburse you if you must seek medical care while traveling. Some plans only cover emergency medical care, but some also cover other types of medical care. You may need to pay a deductible or copay.
• Rental car coverage may provide a collision damage waiver when renting a car. This waiver may reimburse for collision damage or theft up to a set amount. Some policies also cover loss-of-use charges assessed by the rental company and towing charges to take the vehicle to the nearest qualified repair facility. You generally need to decline the rental company's collision damage waiver or similar provision to be covered.

Should I buy travel health insurance?

If you purchase travel with credit cards that provide various trip protections, you may not see much need for additional travel insurance. However, you may still wonder whether you should buy travel medical insurance.

If your primary health insurance covers you on your trip, you may not need travel health insurance. Your domestic policy may not cover you outside the U.S., though, so it's worth calling the number on your health insurance card if you have coverage questions. If your primary health insurance wouldn't cover you, it's likely worth purchasing travel medical insurance. After all, as you can see above, travel medical insurance is often very modestly priced.

How much does travel insurance cost?

Travel insurance costs depend on various factors, including the provider, the type of coverage, your trip cost, your destination, your age, your residency and how many travelers you want to insure. That said, a standard travel insurance plan will generally set you back somewhere between 4% and 10% of your total trip cost. However, this can get lower for more basic protections or become even higher if you include add-ons like cancel for any reason protection.

The best way to determine how much travel insurance will cost is to price out your trip with a few providers discussed in the guide. Or, visit an insurance aggregator like InsureMyTrip to quickly compare options across multiple providers.

When and how to get travel insurance

For the most robust selection of available travel insurance benefits — including time-sensitive add-ons like CFAR protection and waivers of preexisting conditions for eligible travelers — you should ideally purchase travel insurance on the same day you make your first payment toward your trip.

However, many plans may still offer a preexisting conditions waiver for those who qualify if you buy your travel insurance within 14 to 21 days of your first trip expense or deposit (this time frame may vary by provider). If you don't need a preexisting conditions waiver or aren't interested in CFAR coverage, you can purchase travel insurance once your departure date nears.

You must purchase coverage before it's needed. Some travel medical plans are available for purchase after you have departed, but comprehensive plans that include medical coverage must be purchased before departing.

Additionally, you can't buy any medical coverage once you require medical attention. The same applies to all travel insurance coverage. Once you recognize the need, it's too late to protect your trip.

Once you've shopped around and decided upon the best travel insurance plan for your trip, you should be able to complete your purchase online. You'll usually be able to download your insurance card and the complete policy shortly after the transaction is complete.

Related: 7 times your credit card's travel insurance might not cover you

Bottom line

Not all travel insurance policies and providers are equal. Before buying a plan, read and understand the policy documents. By doing so, you can choose a plan that's appropriate for you and your trip — including the features that matter most to you.

For example, if you plan to go skiing or rock climbing, make sure the policy you buy doesn't contain exclusions for these activities. Likewise, if you're making two back-to-back trips during which you'll be returning home for a short time in between, be sure the plan doesn't terminate coverage at the end of your first trip.

If you're looking to cover a sudden recurrence of a preexisting condition, select a policy with a preexisting condition waiver and fulfill the requirements for the waiver. After all, buying insurance won't help if your policy doesn't cover your losses.

Disclaimer : This information is provided by IMT Services, LLC ( InsureMyTrip.com ), a licensed insurance producer (NPN: 5119217) and a member of the Tokio Marine HCC group of companies. IMT's services are only available in states where it is licensed to do business and the products provided through InsureMyTrip.com may not be available in all states. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not create or modify any insurance policy terms in any way. For more information, please visit www.insuremytrip.com .

U.S. News takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.

9 Best Travel Insurance Companies of April 2024

According to our analysis of more than 50 travel insurance companies and hundreds of different travel insurance plans, the best travel insurance company is Travelex Insurance Services. In our best travel insurance ratings, we take into account traveler reviews, credit ratings and industry awards. The best travel insurance companies offer robust coverage and excellent customer service, and many offer customizable add-ons.

Travelex Insurance Services »

Allianz Travel Insurance »

HTH Travel Insurance »

Tin Leg »

AIG Travel Guard »

Nationwide Insurance »

Seven Corners »

Generali Global Assistance »

Berkshire hathaway travel protection ».

Why Trust Us

U.S. News evaluates ratings, data and scores of more than 50 travel insurance companies from comparison websites like TravelInsurance.com, Squaremouth and InsureMyTrip, plus renowned credit rating agency AM Best, in addition to reviews and recommendations from top travel industry sources and consumers to determine the Best Travel Insurance Companies.

Table of Contents

• Travelex Insurance Services
• Allianz Travel Insurance

Travel insurance can help you protect the financial investment you made in your vacation when unexpected issues arise. Find the best travel insurance for the type of trip(s) you're taking and the coverages that matter most to you – from interruptions and misplaced belongings to illness and injury.

• Travelex Insurance Services: Best Overall
• Allianz Travel Insurance: Best for Trip Interruptions
• HTH Travel Insurance: Best for Groups
• Tin Leg: Best Cost
• AIG Travel Guard: Best for Families
• Nationwide Insurance: Best for Last-Minute Travel Insurance
• Seven Corners: Best for 24/7 Support When Traveling
• Generali Global Assistance: Best for Medical Emergencies
• Berkshire Hathaway Travel Protection: Best for Specialized Coverage

Customizable upgrades are available, including car rental coverage, additional medical insurance and adventure sports coverage

Medical and trip cancellation maximum are not as high as some other companies

• 100% of the insured trip cost for trip cancellation; 150% for trip interruption
• Up to $1,000 in coverage for lost, damaged or stolen bags and personal items; $200 for luggage delays
• $750 in missed connection coverage
• $50,000 in emergency medical and dental coverage
• Up to $500,000 in emergency medical evacuation and repatriation coverage

SEE FULL REVIEW »

Annual and multitrip policies are available

Distinguishing between the company's 10 travel insurance plans can be challenging

• Up to $200,000 in trip cancellation coverage; $300,000 in trip interruption coverage
• $2,000 for lost, damaged or stolen luggage and personal effects; $600 for bag delays
• Up to $1,600 for travel delays
• Emergency medical coverage of up to $75,000
• Epidemic coverage

Generous coverage at the mid- and high-tier levels, and great group discounts

Preexisting conditions coverage is only available at mid- and high-tier plans

• 100% trip cancellation coverage (up to $50,000); 200% trip interruption coverage
• Up to $2,000 in coverage for baggage and personal effects; $400 in baggage delay coverage
• Up to $2,000 in coverage for trip delays; $1,000 for missed connections
• $500,000 in coverage per person for sickness and accidents

Variety of plans to choose from, including two budget-friendly policies and several more premium options

More limited coverage for baggage issues than other companies

• 100% trip cancellation protection; 150% trip interruption
• $500 per person for lost, stolen or damaged baggage and personal items
• Up to $2,000 per person in travel delay coverage ($150 per day); $100 per person for missed connections
• $100,000 per person in emergency medical coverage, including issues related to COVID-19

Travel insurance policy coverage is tailored to your specific trip

Information about policy coverage inclusions is not readily available without first obtaining a quote

• Trip cancellation coverage for up to 100% of your trip's cost; trip interruption coverage for up to 150% of the trip cost
• Up to $2,500 in coverage for lost, stolen or damaged baggage; $500 related to luggage delays
• Up to $1,000 in missed connection and trip delay coverage
• $100,000 in emergency medical coverage

Variety of plans to choose from and coverage available up to a day before you leave on your trip

Limited trip cancellation coverage even at the highest tier

• Trip cancellation coverage up to $30,000; trip interruption coverage worth up to 200% of the trip cost (maximum of $60,000)
• $2,000 for lost, damaged or stolen baggage; $600 for baggage delays
• Up to $2,000 for trip delays; missed connection and itinerary change coverage of $500 each
• $150,000 for emergency medical and dental issues

Customer service available 24/7 via text, Whatsapp, email and phone

Cancel for any reason coverage costs extra

• 100% trip cancellation coverage (up to between $30,000 and $100,000 depending on your state of residence); interruption coverage for up to 150% of the trip cost 
• Lost, stolen or damaged baggage coverage up to $2,500; up to $600 for luggage delays
• Trip delay and missed connection coverage worth up to $1,500
• Emergency medical coverage worth up to between $250,000 and $500,000 (depending on where you live)

Generous emergency medical and emergency evacuation coverage

Coverage for those with preexisting conditions is only available on the Premium plan

• 100% reimbursement for trip cancellation; 175% reimbursement for trip interruption
• $2,000 in coverage for loss of baggage per person
• $1,000 per person in travel delay and missed connection coverage
• $250,000 in medical and dental coverage per person

In addition to single-trip plans, company offers specific road trip, adventure travel, flight and cruise insurance coverage

Coverage for missed connections or accidental death and dismemberment is not part of the most basic plan

• Trip cancellation coverage worth up to 100% of the trip cost; interruption coverage worth up to 150% of the trip cost
• $500 in coverage for lost, stolen or damaged bags and personal items; bag delay coverage worth $200
• Trip delay coverage worth up to $1,000; missed connection coverage worth up to $100
• Medical coverage worth up to $50,000

To help you better understand the costs associated with travel insurance, we requested quotes for a weeklong June 2024 trip to Spain for a solo traveler, a couple and a family. These rates should help you get a rough estimate for about how much you can expect to spend on travel insurance. For additional details on specific coverage from each travel insurance plan and to input your trip information for a quote, see our comparison table below.

Travel Insurance Types: Which One Is Right for You?

There are several types of travel insurance you'll want to evaluate before choosing the policy that's right for you. A few of the most popular types of travel insurance include:

COVID travel insurance Select insurance plans offer some or a combination of the following COVID-19-related protections: coverage for rapid or PCR testing; accommodations if you're required to quarantine during your trip if you test positive for coronavirus; health care; and trip cancellations due to you or a family member testing positive for COVID-19. Read more about the best COVID-19 travel insurance options .

Cancel for any reason insurance Cancel for any reason travel insurance works exactly how it sounds. This type of travel insurance lets you cancel your trip for any reason you want – even if your reason is that you simply decide you no longer want to go. Cancel for any reason travel insurance is typically an add-on you can purchase to go along with other types of travel insurance. For that reason, you will pay more to have this kind of coverage added to your policy.

Also note that this type of coverage typically only reimburses 50% to 80% of your nonrefundable prepaid travel expenses. You'll want to make sure you know exactly how much reimbursement you could qualify for before you invest in this type of policy. Compare the best cancel for any reason travel insurance options here .

International travel insurance Travel insurance is especially useful when traveling internationally, as it can provide medical coverage for emergencies (in some cases for COVID-19) when you're far from home. Depending which international travel insurance plan you choose, this type of travel insurance can also cover lost or delayed luggage, rental cars, travel interruptions or cancellations, and more.

Cheap travel insurance If you want travel insurance but don't want to spend a lot of money, there are plenty of cheap travel insurance options that will offer at least some protections (and peace of mind). These are typically called a company's basic or standard plan; many travel insurance companies even allow you to customize your coverage, spending as little or as much as you want. Explore your options for the cheapest travel insurance here .

Trip cancellation, interruption and delay insurance Trip cancellation coverage can help you get reimbursement for prepaid travel expenses, such as your airfare and cruise fare, if your trip is ultimately canceled for a covered reason. Trip interruption insurance, on the other hand, kicks in to reimburse you if your trip is derailed after it starts. For instance, if you arrived at your destination and became gravely ill, it would cover the cost if you had to cut your trip short.

Trip delay insurance can help you qualify for reimbursement of any unexpected expenses you incur (think: lodging, transportation and food) in the event your trip is delayed for reasons beyond your control, such as your flight being canceled and rebooked for the next day. You will want to save your receipts to substantiate your claim if you have this coverage.

Lost, damaged, delayed or stolen bags or personal belongings Coverage for lost or stolen bags can come in handy if your checked luggage is lost by your airline or your luggage is delayed so long that you have to buy clothing and toiletries for your trip. This type of coverage can kick in to cover the cost to replace lost or stolen items you brought on your trip. It can also provide coverage for the baggage itself. It's even possible that your travel insurance policy will pay for your flight home if damages are caused to your residence and your belongings while you're away, forcing you to return home immediately.

Travel medical insurance If you find yourself sick or injured while you are on vacation, emergency medical coverage can pay for your medical expenses. With that in mind, however, you will need to find out whether the travel medical insurance you buy is primary or secondary. Where a primary policy can be used right away to cover medical bills incurred while you travel, secondary coverage only provides reimbursement after you have exhausted other medical policies you have.

You will also need to know how the travel medical coverage you purchase deals with any preexisting conditions you have, including whether you will have any coverage for preexisting conditions at all. Read more about the best travel medical insurance plans .

Evacuation insurance Imagine you break your leg while on the side of a mountain in some far-flung land without quality health care. Not only would you need travel medical insurance coverage in that case, but you would also need coverage for the exorbitant expense involved in getting you off the side of a mountain and flying you home where you can receive appropriate medical care.

Evacuation coverage can come in handy if you need it, but you will want to make sure any coverage you buy comes with incredibly high limits. According to Squaremouth, an emergency evacuation can easily cost $25,000 in North America and up to $50,000 in Europe, so the site typically suggests customers buy policies with $50,000 to $100,000 in emergency evacuation coverage.

Cruise insurance Travel delays; missed connections, tours or excursions; and cruise ship disablement (when a ship encounters a mechanical issue and is unable to continue on in the journey) are just a few examples why cruise insurance can be a useful protection if you've booked a cruise vacation. Learn more about the top cruise insurance plans here .

Credit card travel insurance It is not uncommon to find credit cards that include trip cancellation and interruption coverage , trip delay insurance, lost or delayed baggage coverage, travel accident insurance, and more. Cards that offer this coverage include popular options like the Chase Sapphire Reserve credit card , the Chase Sapphire Preferred credit card and The Platinum Card from American Express . 

Note that owning a credit card with travel insurance protection is not enough for your coverage to count: To take advantage of credit card travel insurance, you must pay for prepaid travel expenses like your airfare, hotel stay or cruise with that specific credit card. Also, note that credit cards with travel insurance have their own list of exclusions to watch out for. Many also require cardholders to pay an annual fee.

Frequently Asked Questions

The best time to buy travel insurance is normally within a few weeks of booking your trip since you may qualify for lower pricing if you book early. Keep in mind, some travel insurance providers allow you to purchase plans until the day before you depart.

Many times, you are given the option to purchase travel insurance when you book your airfare, accommodations or vacation package. Travel insurance and travel protection are frequently offered as add-ons for your trip, meaning you can pay for your vacation and some level of travel insurance at the same time.

However, many people choose to wait to buy travel insurance until after their entire vacation is booked and paid for. This helps travelers tally up all the underlying costs associated with a trip, and then choose their travel insurance provider and the level of coverage they want.

Figuring out where to buy travel insurance may be confusing but you can easily research and purchase travel insurance online these days. Some consumers prefer to shop around with a specific provider, such as Allianz or Travelex, but you can also shop and compare policies with a travel insurance platform. Popular options include:

• TravelInsurance.com: TravelInsurance.com offers travel insurance options from more than a dozen vetted insurance providers. Users can read reviews on the various travel insurance providers to find out more about previous travelers' experiences with them. Squaremouth: With Squaremouth, you can enter your trip details and compare more than 90 travel insurance plans from 20-plus providers.
• InsureMyTrip: InsureMyTrip works similarly, letting you shop around and compare plans from more than 20 travel insurance providers in one place. InsureMyTrip also offers several guarantees, including a Best Price Guarantee, a Best Plan Guarantee and a Money-Back Guarantee that promises a full refund if you decide you no longer need the plan you purchased.

Protect your trip: Search, compare and buy the best travel insurance plans for the lowest price. Get a quote .

When you need to file a travel insurance claim, you should plan on explaining to your provider what happened to your trip and why you think your policy applies. If you planned to go on a Caribbean cruise, but your husband fell gravely ill the night before you were set to depart, you would need to explain that situation to your travel insurance company. Information you should share with your provider includes the details of why you're making a claim, who was involved and the exact circumstances of your loss.

Documentation is important, and your travel insurance provider will ask for proof of what happened. Required documentation for travel insurance typically includes any proof of a delay, receipts, copies of medical bills and more.

Most travel insurance companies let you file a claim using an online form, but some also allow you to file a claim by phone or via fax. Some travel insurance providers, such as Allianz and Travel Insured International, offer their own mobile apps you can use to buy policies and upload information or documents that substantiate your claim. In any case, you will need to provide the company with proof of your claim and the circumstances that caused it.

If your claim is initially denied, you may also need to answer some questions or submit some additional information that can highlight why you do, in fact, qualify.

Whatever you do, be honest and forthcoming with all the information in your claim. Also, be willing to provide more information or answer any questions when asked.

Travel insurance claims typically take four to six weeks to process once you file with your insurance company. However, with various flight delays and cancellations due to things like extreme weather and pilot shortages, more travelers have begun purchasing travel insurance, encountering trip issues and having to submit claims. The higher volume of claims submitted has resulted in slower turnaround times at some insurance companies.

The longer you take to file your travel insurance claim after a loss, the longer you will be waiting for reimbursement. Also note that, with many travel insurance providers, there is a time limit on how long you can submit claims after a trip. For example, with Allianz Travel Insurance and Travelex Insurance Services, you have 90 days from the date of your loss to file a claim.

You may be able to expedite the claim if you provide all the required information upfront, whereas the process could drag on longer than it needs to if you delay filing a claim or the company has to follow up with you to get more information.

Travel insurance is never required, and only you can decide whether or not it's right for you. Check out Is Travel Insurance Worth It? to see some common situations where it does (and doesn't) make sense.

Why Trust U.S. News Travel

Holly Johnson is an award-winning content creator who has been writing about travel insurance and travel for more than a decade. She has researched travel insurance options for her own vacations and family trips to more than 50 countries around the world, and has experience navigating the claims and reimbursement process. In fact, she has successfully filed several travel insurance claims for trip delays and trip cancellations over the years. Johnson also works alongside her husband, Greg, who has been licensed to sell travel insurance in 50 states, in their family media business.

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We Now Offer USA Visitors & International Travel Medical Insurance Get a Free quote now

Comprehensive trip insurance for us citizens traveling in the usa and abroad, get a free quote, our travel insurance covers covid-19.

You are covered for trip cancellation in the event that you contract Covid-19, or you are quarantined due to exposure. You are also covered under our travel medical and trip interruption insurance for Covid-19. We offer Cancel for Any Reason Travel Insurance to cover you for border closures, and fear of traveling.

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Traveler's experiences, frequently asked questions about tripinsurance, what does tripinsurance cover.

Trip insurance covers you before and during your trip. Before your trip, it can protect you if you must cancel your trip. During your trip, it covers trip interruption, trip delay, as well as medical care, and medical emergency evacuation for any covered medical emergencies that may arise. Most trip insurance plans offer both insurance benefits along with assistance services and travel assistance. See the coverage details in your chosen trip plan for more details.

What Factors Determine How Much Travel Insurance Costs?

Your age, length of your trip, and your trip cost determines the travel insurance cost. Coverage features and limits also affect the price of the plan. The more coverage included in the plan – the higher the cost of the policy.

By law, there are no discounts in the travel insurance industry, so wherever you find a policy by the same brand name from a travel insurance provider, it is the same price no matter where you buy it. TripInsurance.com has some exclusive trip insurance policies that are priced much lower for comparable coverage giving you a much better value and will ultimately help you save money on the trip plans you need.

What Is Trip Cancellation Insurance?

The trip cancellation coverage benefit covers the non-refundable trip costs when you must cancel your travel plans. All plans cover trip cancellation and interruption for covered medical reasons (such as sickness, injury, or accidental death of you, someone you’re traveling with, or even a family member that is not traveling with you). Additionally, certain non-medical reasons will be covered as well, such as air carrier delays or cancellations, theft of travel documents, baggage delay, your boss canceling your vacation, or an extension of the school year. The more reasons that are covered, the better the plan. It is as simple as that!

When Do I Need to Purchase Travel Insurance?

Sooner is better. If you purchase your insurance within 14 days of your initial trip deposit, many policies offer a medical waiver for pre-existing conditions and even cancelation for any reason (Maybe you don’t want to take that week skiing because there’s no snow.)

Do I need Trip Insurance When Only Travelling Within the United States?

You should purchase trip insurance for traveling within the US if you want to protect your vacation deposit that may have cancellation penalties like a vacation rental. If there’s a chance you may be delayed in your travels, or if your health insurance as a U.S. resident doesn’t cover you out of state, you need travel insurance.

Is TripInsurance.com an Insurance Company?

TripInsurance.com is an insurance agency that carefully selects the best travel insurance policies for our customers. Some of our policies are unique to TripInsurance.com and offer exceptional value. We sell travel insurance policies from the most trusted travel insurance companies at the best price possible. Our insurance agents are here to help you find the best travel insurance products for your next trip.

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• Best overall
• Best for cruises
• Best for reputation
• Best for preexisting conditions
• Best for digital nomads
• Best low-cost
• Best for road trips

How we reviewed travel insurance companies

Ultimate guide to choosing the best travel insurance.

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

Traveling is an adventure, a leap into the unknown, a story waiting to unfold. But every story needs a safety net, and that's where travel insurance comes in. In this guide to the best travel insurance, we'll embark on a journey to help you better understand travel insurance and uncover the benefits that make it an indispensable companion for any traveler.

Compare the best travel insurance

Best overall: nationwide.

• Trip cancellation coverage of up to 100% of trip costs (for cruises) or up to $30,000 (for single-trip plans)
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Three cruise-specific plans to choose from
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Annual travel insurance plans available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Strong trip cancellation coverage
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Cancel for any reason coverage available
• con icon Two crossed lines that form an 'X'. CFAR insurance not available with every single plan
• con icon Two crossed lines that form an 'X'. Medical coverage is lower than what some competitors offer

Nationwide Travel Insurance offers many of the standard benefits you might see with a travel insurance policy. This can include things like trip cancellation coverage, so you can recover pre-paid costs or trip interruption in the event your vacation is interrupted by an unexpected event. There's also baggage delay coverage and medical coverage.

• Cancel for any reason coverage available

Nationwide Travel Insurance is of the largest players in the travel insurance space, offering nearly endless options for any customer on the travel spectrum, including annual travel insurance plans which can offer frequent travelers the flexibility to "set it and forget it" on their travel insurance coverage.

Nationwide Essential also offers some of the most affordable policies in the market compared to similar plans from competitors, which makes it a great pick for just about anyone. Buyers can discuss bundling options as Nationwide also sells homeowners, auto, pet, and other insurance products. Its travel insurance quoting is just as easy as it has been with other Nationwide insurance products.

Read our Nationwide Travel Insurance review here.

Runner-up: AXA Assistance USA 

• Trip cancellation coverage of up to 100% of the trip cost
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Generous medical evacuation coverage
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Up to $1,500 per person coverage for missed connections on cruises and tours
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Covers loss of ski, sports and golf equipment
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Generous baggage delay, loss and trip delay coverage ceilings per person
• con icon Two crossed lines that form an 'X'. Cancel for any reason (CFAR) coverage only available for most expensive Platinum plan
• con icon Two crossed lines that form an 'X'. CFAR coverage ceiling only reaches $50,000 maximum despite going up to 75%

AXA Assistance USA keeps travel insurance simple with gold, silver, and platinum plans. Emergency medical and CFAR are a couple of the options you can expect. Read on to learn more about AXA.

• Silver, Gold, and Platinum plans available
• Trip interruption coverage of up to 150% of the trip cost
• Emergency medical coverage of up to $250,000

AXA Assistance USA  offers consumers a great option for no-stress travel insurance: low-priced plans, generous coverage limits on key categories including primary insurance on lost luggage, and up to 150% reimbursement for qualifying trip cancellations.

While add-ons are limited and rental car coverage is not included by default on cheaper plans, AXA is a perfect fit for travelers who don't plan to drive (or who already hold a travel credit card with rental car coverage), and don't need any additional bells and whistles.

Read our AXA Assistance USA Travel Insurance review here.

Best for cruises: AIG Travel Guard

Trip cancellation coverage for up to 100% of the trip cost and trip interruption coverage for up to 150% of the trip cost

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Trip cancellation coverage of up to 100% of the cost, for all three plan levels
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. CFAR covers up to 75% of total trip costs (maximum of $112,500 on some plans) 
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Medical coverage of up to $500,000 and evacuation of up to $1,000,000 per person
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Includes COVID coverage 
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Above average baggage loss and delay benefits
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High medical evacuation coverage
• con icon Two crossed lines that form an 'X'. Premiums may run slightly higher than competitors

Travel Guard is a well-established and highly rated name in the travel insurance industry. It offers three main coverage options to choose from, and in general its policies have above-average coverage for baggage loss and baggage delays, plus high medical evaluation coverage limits.

• Trip cancellation coverage for up to 100% of the trip cost
• Trip interruption coverage for up to 150% of the trip cost
• Preexisting medical conditions exclusions waiver must be purchased within 15 days of initial trip payment
• Annual travel insurance plan and Pack N' Go plan (for last-minute trips) available

Travel Guard is well-known insurance provider, and a great fit for travelers who want to ensure that they can get their money back in the event of canceled or interrupted travel plans.

While the company's policies can be pricey compared to its competitors, the high medical and evacuation limits make AIG a solid choice for older travelers who value peace of mind and simplicity over highly customizable plans that may be bolstered with medical upgrades.

Read our AIG Travel Guard review here.

Best for reputation: Berkshire Hathaway Travel Protection

Covers up to 100% of trip cancellation costs, a minimum of up to $750 in luggage losses, and 24/7 worldwide travel insurance

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Offers up to 100% trip cancellation refund for eligible travel
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Plans are customizable with relevant add-ons
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Good customer service and easy sign up according to traveler reviews
• con icon Two crossed lines that form an 'X'. More affordable plans offer low caps on medical and emergency coverage
• con icon Two crossed lines that form an 'X'. Premiums are on the expensive side relative to comparable competitor plans
• con icon Two crossed lines that form an 'X'. Claims may take longer during peak travel seasons

Berkshire Hathaway Travel Protection is one of the leading insurance brands on the market. It offers several plans with key add-ons for travelers.

• This provider underwrites travel insurance policies for a number of other companies in addition to offering its own plans
• Travelers can file claims directly from a smartphone by using the BHTP app

Berkshire Hathaway Travel Protection  helps travelers make the best of bad situations by simplifying the process of filing a claim down to a simple photo snap and some basic paperwork submitted directly through a dedicated app.

Approved claims are also paid out very rapidly, making it easier to carry through with a trip when luggage has been lost or alternative travel plans need to be made on the fly.

Read our Berkshire Hathaway Travel Insurance review here.

Best for preexisting conditions: Tin Leg Travel Insurance

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Policy coverage includes most pre-existing health conditions
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Generous medical and evacuation amounts for peace of mind
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. COVID coverage included by default on all insurance plans
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Offers a wide range of plans for various budgets and travel needs
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Some plans offer CFAR, “cancel for work reasons,” financial default, and unemployment coverage
• con icon Two crossed lines that form an 'X'. Limited add-on coverage options
• con icon Two crossed lines that form an 'X'. Baggage loss and delay coverage is low compared to competitors

Tin Leg travel insurance offers eight travel insurance plans to meet the unique needs of travelers.

• Tin Leg was founded in 2014 by the travel insurance industry experts at Squaremouth. Designed to meet the most common needs of travelers, these policies offer comprehensive Trip Cancellation and Trip Interruption benefits, and a range of Emergency Medical and Medical Evacuation limits.

Tin Leg Travel Insurance is a great fit for travelers with medical issues in particular. Thanks to coverage for preexisting medical conditions as well as for potential COVID-19 infection while traveling, this company offers some of the best financial investment options for travelers who are or will be exposed to higher health risks and issues.

Read our Tin Leg Travel Insurance review here.

Best for digital nomads: WorldTrips Travel Insurance

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Affordable base plans that can be customized with add-ons including rental car, pet care, hunting and fishing, and vacation rental coverage
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Insurance plans available for international student travelers
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Trip delay coverage benefit that kicks in after just five hours
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Pre-existing conditions waiver can be purchased within 21 days of initial trip payment
• con icon Two crossed lines that form an 'X'. Lower medical, evacuation and accidental death limits
• con icon Two crossed lines that form an 'X'. Limited, secondary baggage loss coverage although baggage protection can be upgraded at a low cost
• con icon Two crossed lines that form an 'X'. No special coverages for pets, sports equipment, etc.

WorldTrips has been a reputable travel insurance provider for more than 20 years. Unsurprisingly, it boasts an A+ rating from the Better Business Bureau and positive reviews from thousands of customers.

• Travel medical insurance (Premium, Group, Annual, and International Student options)
• Trip cancellation insurance
• Trip protection insurance

WorldTrips Travel Insurance has affordable premiums, highly customizable add-ons, and generous coverage for core categories of travel insurance. All this makes it a great option for digital nomads, students studying abroad and backpackers.

However, travelers should keep in mind that plans are not particularly flexible, and coverage amounts are limited unless you plan ahead to pay for the areas and amounts that you need.

Read our WorldTrips Travel Insurance review here.

Best low-cost option: Trawick International

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Useful for adventurous travelers headed to higher-risk destinations
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Affordable plans with varying levels of coverage
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. 10-day free look option
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Generous baggage loss replacement policy
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Trip delay coverage kicks in after just six hours
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Some policies allow a CFAR add-on
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Up to $1 million medical evacuation coverage limit
• con icon Two crossed lines that form an 'X'. Baggage and trip delay coverages don’t kick in until after the 12-hour mark
• con icon Two crossed lines that form an 'X'. International student policies available for temporary stints abroad
• con icon Two crossed lines that form an 'X'. Complaints about claims not being paid or involving an intermediary to resolve claims

Trawick International travel insurance offers plans customized to diverse travelers' needs. We look at coverage options, claims processing, pricing, and other important factors for savvy travelers.

• Travel medical insurance
• Trip protection and cancellation
• International student insurance
• Visitor medical insurance (for traveling to the US)

Trawick International Travel Insurance is another insurance provider with robust medical travel insurance  that can help higher-risk and anxious travelers find peace of mind while on the road. This company offers one of the most generous medical evacuation policies in the market, although travelers will need to remember to add on rental car coverage if they need it.

Read our Trawick Travel Insurance review here.

Best for road trips: Travelex

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Options to cover sports equipment
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Option to increase medical coverage
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Can cancel up to 48 hours before travel when CFAR option is purchased
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Affordable coverage for budget-conscious travelers
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Includes generous baggage delay, loss and trip delay coverage
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Optional "adventure sports" bundle available for riskier activities
• con icon Two crossed lines that form an 'X'. Only two insurance plans to choose from
• con icon Two crossed lines that form an 'X'. Medical coverage maximum is low at up to $50,000 per person
• con icon Two crossed lines that form an 'X'. Pricier than some competitors with lower coverage ceilings
• con icon Two crossed lines that form an 'X'. Some competitors offer higher medical emergency coverage

Travelex travel insurance is one of the largest travel insurance providers in the US providing domestic and international coverage options. It offers a basic, select, and America option. Read on to learn more.

• Optional CFAR insurance available with the Travel Select plan
• Trip delay insurance starting at $500 with the Travel Basic plan
• Emergency medical and dental coverage starting at $15,000

Travelex Travel Insurance  offers three plans:

• Travel Basic
• Travel Select
• Travel America

The Travelex America plan is meant for trips limited to the US, but it has the highest coverage limits in many areas compared to its other programs. If you're flying somewhere, the lost baggage limits are higher. Its natural strengths shine for road trippers, though. Travelex America adds coverage for roadside service and rental car coverage for unexpected accidents. It also covers pets should you be involved in an accident while on the road.

While your standard auto insurance does extend to car rentals within the US for a limited time, any accident would affect future rates. Travelex would eliminate the risk of reporting to your auto insurance provider for minor incidents within its purview.

Read our Travelex Travel Insurance review here.

Introduction to Travel Insurance

Why travel insurance is a must-have.

The unpredictable nature of traveling – from flight cancellations to medical emergencies – can turn your dream vacation into a nightmare. Travel insurance acts as a personal safeguard, ensuring that unexpected events don't drain your wallet or ruin your trip.

Understanding Different Types of Travel Insurance

Not all travel insurance policies are created equal. From single-trip travel insurance policies to annual travel insurance plans , from minimal coverage to comprehensive protection, understanding the spectrum of options is your first step in finding the right fit for your journey.

Key Features to Look for in Travel Insurance Coverage

Travel insurance for medical emergencies.

Imagine falling ill in a foreign country; daunting, right? A robust travel insurance plan ensures you don't have to worry about the financial aspect of receiving medical care while traveling , even in the most remote corners of the globe.

Trip Cancellation and Interruption Benefits

Life is full of surprises, some less pleasant than others. Trip cancellation and interruption coverage ensures that you're not left out of pocket if unforeseen circumstances force you to cancel or cut your trip short.

Coverage for Personal Belongings and Baggage Loss

Losing your belongings is more than an inconvenience; it's losing a piece of your world. Insurance that covers personal belongings and baggage loss ensures that you're compensated for your loss, helping you to rebound and continue your adventure.

Support and Assistance Services

In times of trouble, having a lifeline can make all the difference. Look for insurance that offers 24/7 support and assistance services, giving you peace of mind that help is just a phone call away.

Choosing Travel Insurance

Reputation and reliability of the travel insurance provider.

A provider's reputation is not just about being well-known; it's about reliability, customer satisfaction, and the ability to deliver on promises. Researching and choosing a reputable provider is a cornerstone in ensuring your safety and satisfaction.

Understanding the Policy's Fine Print

The devil is in the details, and understanding the fine print of what your travel insurance policy covers is crucial. Be aware of coverage limits, exclusions, and the process for filing a claim to avoid any unpleasant surprises.

Customer Reviews and Feedback

In the age of information, customer reviews and feedback are goldmines of insight. Learn from the experiences of others to gauge the reliability and customer service of the insurance provider you're considering.

How to Get the Most Out of Your Travel Insurance

Knowing your policy inside out.

Familiarize yourself with every aspect of your policy – what it covers, what it doesn't, how to file a claim, and who to contact in an emergency. Being informed means being prepared. 

Steps to Take When a Problem Arises

If you face an issue during your travels, knowing the immediate steps to take can make all the difference. Keep important contacts and your policy details handy, and remember, your insurance provider is there to assist you.

How to Pick the Best Travel Insurance Company for You

There isn't a one-size-fits-all policy that works perfectly for every traveler. Young, healthy solo travelers can opt for much cheaper plans that offer bare-bones coverage, while families juggling complex itineraries will do best by investing in a robust policy that can help defray any costs associated with lost baggage, delayed transportation or other trip-impeding obstacles.

That being said, you can't go wrong with a travel insurance provider that boasts a reputable history and offers a wide range of customizable plans. In some cases, you may be comparing plans that are only a few dollars' apart from each other. In such situations, you should generally opt for the insurance company that offers the strongest customer service. It's also worth considering whether or not the travel insurance provider has been reviewed by other travelers with similar itineraries to your own. 

An insurance aggregator like InsureMyTrip or Squaremouth is one of the best tools for searching travel insurance policies. Once you input the specifics of your travel itinerary, you'll be able to see hundreds of search results to compare the ones that catch your eye. If the options are too overwhelming, use the filters to the left of your search page to eliminate as many irrelevant plans as possible.

To come up with our list of the best travel insurance companies, we evaluated each insurer based on the following factors:

Guide Methodology: What We Considered

Policy Types

Travel insurance is essential, but often underused partly because people aren't getting what they want. Business Insider's 2023 travel study showed 10.65% of travelers surveyed bought cancel for any reason insurance. Cost may be a factor, but in many cases, the coverage is more affordable than you might think. Regardless, companies must offer a diverse range of coverage options. We award five stars to companies offering all standard coverages and additional options like pet and sports equipment protection.

Our 2023 travel study indicated the majority of purchases were made through the travel provider (ex: flight protection insurance when you're purchasing your airline tickets). While these may be sufficient for some customers, we look for companies offering a more comprehensive range of services.

According to the US Travel Insurance Association, the average cost of travel insurance will be between 4% and 8% of total travel expenses. Anything beyond that price point should include additional benefits beyond the standard inclusions, such as CFAR protection or upgraded medical coverage. Anything below that 4% threshold may leave you lacking important or sufficient coverage in an emergency.

Convenience and Flexibility

Whether you're an infrequent traveler or a suitcase warrior, a good travel insurance company should have you covered. In many cases, you might not even have to talk to a person in order to purchase your policy.

Many people think of travel insurance in context with specific trips, but most of these top contenders sell both single-trip and multi-trip policies, also known as annual travel insurance. Some companies also offer plans specifically designed for cruisers, students abroad, and business travelers. (Read our guide to the best cruise travel insurance companies for more details.) Finally, all of these providers offer multiple options for getting the specific areas and amounts of coverage that you want.

Claims Handling

Most travelers never have a large claim. Premiums are low, and it provides peace of mind for the just in case situations. So they leave reviews based on their reduced stress levels. But what happens if you lose your luggage or have to stay a few extra days due to an unexpected accident? Will your insurance carrier cover your claim without all the hassle? We check real customer reviews to sort this out for you.

Ease of Use and Support

When purchasing, during your trip, and throughout the claims process, you may need extra support. Does the company have a 24/7 help line? Does it have an online or mobile system allowing you to self-manage? Essentially, what are the options when you need help? We look at the big picture to evaluate the average customer experience with each company.

You can read our full insurance rating methodology for even more details.

Yes, travel insurance typically offers some coverage of canceled flights, but if this benefit is important to you, make sure you read the fine print of your policy to make sure it offers adequate reimbursement. If you think you may need to cancel your travel plans, you should consider purchasing cancel for any reason (CFAR) travel insurance .

There isn't one best travel insurance company; there are many great providers on the travel insurance market today. Our overall winner was Nationwide for its breadth of coverage options. AIG Travel Guard, AXA, Berkshire Hathaway, Tin Leg, WorldTrips and Trawick also made the cut. The best pick for you will depend on what features you value the most, like a low premium or high coverage limits.

The average cost of travel insurance is 5% to 10% of your total trip cost, so it could vary widely depending on where you're traveling and the length of your trip. Your age, the number of people in your group, and other factors can also influence how much you'll pay.

Most comprehensive travel insurance policies include medical coverage that can come in handy if an emergency occurs and you need medical evacuation. Some travel insurance plans offer more specialized coverage for travelers with preexisting conditions , so shop around if medical coverage is a top priority for you. 

$100,000 should be a sufficient medical coverage limit for travel insurance. If you're planning on doing extreme sports or anything particularly risky on your trip, you may want to increase your coverage level. A high medical coverage limit is especially useful when you're purchasing cruise travel insurance, since medical evacuations are more involved at sea.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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How Much Does Travel Insurance Cost?

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• The average travel insurance premium this week is $284.68, about the same compared to last week.
• For travel in the United States, the average premium is $92 to $400.
• Travel insurance protects against delayed baggage, trip cancellation, and more.

The average cost of travel insurance fluctuates throughout the year, based on demand and whether or not school's in session. Also keep in mind that where you're traveling and how many people are taking the trip will affect your exact premium.

The average travel insurance premium this week is about the same compared to last week.

Travel insurance rates this week:

• Average premium: $284.68
• Average trip cost: $6,819.26
• Average trip length: 16 Days

Understanding Travel Insurance

Travel insurance plans can cover both domestic and international travel. It could protect against something as familiar as delayed baggage (experts estimate 85% of lost luggage is returned to its owner within 48 hours) or as complicated as trip cancellation.

The benefits and limitations of travel insurance vary based on the company and plan. Above all else, this insurance coverage offers peace of mind.

Some credit cards offer a limited amount of travel insurance annually. If you need clarification on what your credit card offers, contact your provider to verify. These plans are great for cancellations and interruptions but may not cover more costly losses associated with unexpected medical expenses or emergency evacuations.

Individual travel insurance plans include this and much more. Travel insurance protects travelers from the unexpected when away from home.

Average Cost of Travel Insurance by Destination

Some countries are naturally more expensive travel destinations due to higher flight and lodging costs, which could increase travel insurance costs. Travel insurance will generally cost 5% to 10% of your total trip price, according to SquareMouth.

Here's how the prices stack up:

Source: SquareMouth

How Far in Advance to Purchase Travel Insurance

According to an AAA travel survey , 88% of travelers say that reimbursement after a trip cancellation is the most valuable benefit of trip insurance.

According to data gathered by SquareMouth in the last six months, travelers tend to purchase trip cancellation travel insurance 53 days before their trip. Meanwhile, travelers without trip cancellation insurance will buy a policy approximately 16 days before their trip. Regardless of when you buy, cancellation protection can kick in to protect you against the unexpected.

Average Cost of Travel Insurance by Age

A traveler's age is a significant factor in determining the cost of travel insurance. The older a traveler is, the higher travel insurance premiums are. For instance, a senior traveler may need more insurance for health-related emergencies than a millennial.

When calculating your travel insurance premium, travel insurance providers consider the likelihood of a medical emergency.

Get your free travel insurance quote with SquareMouth »

Travel Insurance Rate Tips

How much does travel insurance typically cost.

Travel insurance rates through most providers fall between 4% and 8% of the total trip cost. Like the cost of flights, cruises, etc., rates may vary substantially based on the season, your original location, your destination, and other factors. This week, the average cost of a policy was close to $300.

How can I save money on travel insurance?

To save money on travel insurance, tailor your policy to your specific needs and avoid unnecessary extras. You should also shop around to compare quotes from multiple insurers. Opting for an annual plan if you're a frequent traveler, checking existing coverages from other insurance policies or credit card benefits, and choosing a policy with a higher deductible can significantly lower your premiums. Always read the fine print to understand your coverage fully, ensuring you don't pay for redundant or irrelevant features.

Where are the cheapest places to buy travel insurance?

To find affordable travel insurance, consider using online comparison websites like SquareMouth or InsureMyTrip to see rates from various providers. Other ways to save include purchasing directly from insurance companies, exploring package deals from travel agencies or airlines, utilizing included coverage from credit card benefits, and checking for discounts through membership organizations such as AAA or AARP.

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Personal Finance

Best term life insurance for 2024.

Our evaluations and opinions are not influenced by our advertising relationships, but we may earn a commission from our partners’ links. This content is created independently from TIME’s editorial staff. Learn more about it.

Life insurance is one of the pillars of financial planning. It’s essential for the head of a household or anyone who has people depending on them for their financial needs. Term life is the most common and simplest type of coverage.

There are many term life insurance providers in the U.S., so this review is not intended to be comprehensive. By providing profiles of both leading insurance brands and lesser-known upstarts, we aim to highlight a cross section of the choices you have when you shop for coverage.

Compare the best term life insurance companies

(1) Policies underwritten by Legal and General America Insurance Company (2) Policies underwritten by Western and Southern Insurance Company (3) Policies underwritten by MassMutual (4) Policies underwritten by Allianz

Our recommendations for the best term life insurance companies

Best for young families: fabric by gerber life.

Fabric by Gerber Life offers a fully digital insurance experience: The application and policy access are only available online or through the company’s app. The app offers additional financial-planning tools, including those to create a will or set up college savings for your children. This makes it an intriguing choice for young families with broader financial planning needs.

Most term life insurance applicants don’t need to submit to a medical exam, thanks to Fabric’s automated underwriting system. Coverage terms are 10 to 30 years, in amounts ranging from $100,000 to $5 million.

We noticed that the company offers a live chat option for customer service. It also offers a phone number, but that number goes straight to voicemail and instructs you to leave a message.

• Fully digital experience.
• Mobile app offers additional financial planning tools.
• Minimum coverage level of $100,000 may not be ideal for some.
• Live customer service is available by online chat but not by phone.

Best for minimum coverage amounts: Ethos Life

Ethos Life offers term life insurance with 10-, 15-, 20-, and 30-year terms , in coverage amounts ranging from $20,000 to $2 million. It’s a good option for those with minimal insurance needs.

Ethos provides quotes online, including simplified issue coverage that typically does not require a medical exam. Those aged 20 to 65 are eligible for coverage (those aged 66 to 85 can get whole life insurance). The company also offers a 30-day money-back guarantee.

Ethos Life policies are underwritten by companies such as Legal and General America, which has an A+ rating from A.M. Best.

• Coverage starts at $20,000.
• No medical exam necessary for most customers.
• Does not have agents.

Best for flexible terms: AIG Direct

AIG Life Insurance

AIG Direct is part of AIG, one of the world’s largest insurance companies, providing various types of coverage to millions of people. It offers term life policies with options ranging from 10 to 30 years. Those terms are offered in five-year increments , providing flexibility in how long your policy stays in force. The eligible age range is 20 to 80 years old . Available policies range from $100,000 to $2 million of coverage.

Note that AIG ranked number 19 out of 22 companies in the J.D. Power 2023 U.S. Individual Life Insurance Study . Its 762 points was well below the study’s average score.

• Five-year increments for terms.
• Online quotes available.
• Coverage available up to age 80.
• One of the lowest-ranked companies, according to J.D. Power.
• Lowest available coverage is $100,000, so it may not be ideal for those with minimal life insurance needs.

Best for policy choices: Everyday Life

Most of the providers in this review are insurance companies that underwrite their own policies. Everyday Life is actually an online broker, so it doesn’t underwrite policies; instead, it offers term life policies from insurance companies that do. These include Fidelity Life (an A.M. Best A- rated company), Legal and General America (an A.M. Best A+ rated company), SBLI (an A.M. Best A+ rated company), and others.

The bottom line is that Everyday Life gives you a choice, providing online tools and recommendations to help match you with the policy and coverage you need. Perusing the available policies , you’ll see term life coverage levels ranging from $5,000 to $2 million, for applicants up to age 75. No-medical-exam policies are available as well.

• Multiple options for policies. 
• No medical exam coverage is available.
• Highest available coverage level is only $2 million.
• Does not appear to offer in-person support to discuss insurance options.

Best for flexible coverage amounts: Ladder Life

Ladder Life Insurance

Ladder Life offers term life insurance policies from 10 to 30 years, with coverage amounts ranging from $100,000 to $8 million. The eligible age range for an application is 20 to 60 years .

Like some of the other companies in our review, Ladder offers a largely digital experience and no medical exam for policies up to $3 million , just health questions are asked. What sets Ladder apart, however, is its flexible coverage levels. In other words, if you decide in the future that you need less coverage, you can do so with a click of a button online. If you decide later that you need more coverage, you can apply for more as well. The company claims it offers the only term life policy in the industry with this feature.

• Adjust coverage levels as needed throughout the policy term.
• No medical exam for policies up t $3 million.
• Minimum coverage level of $100,000 may be too high for some.
• Maximum application age is 60.

Best for convertible policies: New York Life

New York Life

Founded in 1845, New York Life is one of the country’s oldest and largest insurance companies. It offers a variety of policy types, including term life up to 20 years. We could not find a coverage amount range on the company website, and the company offers quotes only through its network of agents.

New York Life term policies are convertible, meaning they can be converted into permanent life policies, such as whole life. This gives you flexibility as you get older and your needs change.

• Term life policies can be converted into whole life or other permanent life insurance types.
• Multiple life insurance riders are available.
• No online quotes.
• Must speak with an agent for information about individual coverage options.

Best for financial planning: Northwestern Mutual

Northwestern Mutual

Northwestern Mutual is the country’s largest life insurer, according to the National Association of Insurance Commissioners (NAIC) . The company sells term life policies with terms of 10 or 20 years or until you turn 80. You can convert a policy into a whole life one as your needs change. The company does not appear to state available coverage levels for term life. For that information you’ll need to talk to a Northwestern Mutual agent.

Northwestern could be a great choice if you have advanced financial planning needs. The company offers not only term and permanent life insurance but also disability insurance, long-term care insurance, annuities, investment brokerage and advisory services, private wealth management services, and estate planning.

• Wide variety of financial planning services.
• A.M. Best A++ rating.
• Term life is convertible to whole life policies.
• Ranked number 10 in J.D. Power, right at the study-average score of 790.

Best for customer satisfaction: State Farm

State Farm Life Insurance

Many people recognize State Farm as one of the country’s largest insurers of automobiles and homes. The company also happens to be one of the largest life insurance companies, according to the NAIC.

State Farm offers term life policies for 10, 20, or 30 years. A 10-year policy is available for applicants up to age 75. Coverage amounts start at $100,000 (the company does not state a maximum coverage amount).

State Farm came out on top of the J.D. Power 2023 U.S. Individual Life Insurance Study. Its number one ranking beat out 21 other competitors in this influential study of the industry.

• Top-ranked company by J.D. Power.
• Multiple coverage riders available, including waiver of premium for disability.
• No-medical-exam insurance available .

Best for U.S. military: USAA

USAA Life Insurance

USAA offers two term life policies. Its Essential Term plan is available for those age 21 to 35, with no medical exam and $100,000 of coverage. The term ends on the policyholder’s 39th birthday. The company’s Level Term plan is available for those aged 18 to 70, with available terms of 10 to 30 years and coverage amounts ranging from $100,000 to $10 million. Level Term does require a medical exam.

A USAA Level Term policy includes features tailor-made for members of the U.S. military . These include expedited coverage for deployments, coverage during wartime, severe injury benefits, and guaranteed replacement of the Servicemembers Group Life Insurance (SGLI) upon separation or retirement.

Here's one more thing to note. Unlike USAA auto or homeowner’s insurance, which is available only to USAA members, USAA life insurance is available to any U.S. citizen or permanent resident .

• Level Term includes benefits ideal for military service members.
• Available to any U.S. citizen.
• Minimum coverage of $100,000 might be more than some members need.

Methodology

We gathered information on a number of life insurance companies, from some of the country’s largest to lesser-known brands that sell directly to consumers, relying on company websites for detailed information about coverage levels and eligibility. We used third-party ratings and rankings, such as A.M. Best’s Financial Strength Ratings and the J.D. Power 2023 U.S. Individual Life Insurance Study, to complete our analysis. We also looked at companies’ Trustpilot scores (accessed Nov. 28, 2023). Finally, we determined our “best for” designees based on each company’s strengths.

How to select the best life insurance company

When shopping for a life insurance policy and evaluating companies, consider the following:

The company’s financial stability

It would be a shame to buy a policy and pay its premium for several years only for the company to fail financially and not be there when your family needs it. A history of financial stability gives you confidence that a company will be able to pay your claim. Check the company’s A.M. Best rating to get an idea of its ability to meet that obligation.

The company’s reputation

You want to buy from a company that provides responsive service and has a reputation for customer satisfaction. Sites such as Trustpilot offer consumer reviews. You can also get an idea of a company’s reputation from J.D. Power’s annual study of the life insurance industry.

The company’s policy offerings

There are multiple types of life insurance, including term, whole, universal, variable universal, and indexed universal. Not all companies offer all types, however. You may need to check with several companies to find a policy type and coverage details that work for you.

Getting help

Life insurance can be a complex product to understand and purchase. This is especially true for permanent life insurance with a cash value component. Consider contacting an independent insurance agent for help. Independent agents represent multiple insurance companies and can help you find the best combination of coverage and price.

More on term life insurance

What is term life insurance.

A term life insurance policy provides coverage for a set period: usually 10, 20, or 30 years. If you pass away during that period, your beneficiaries receive a monetary death benefit.

When you buy a term life policy, you make three decisions.

• Length of the term (how long the policy will be in effect).
• Amount of the death benefit.
• Beneficiaries (typically a spouse and children).

Once the policy goes into effect, the insurance company will charge you an annual premium, which will be based on the term length and death benefit amount along with factors such as your age, health, and occupation.

If you pass away while the policy is in effect, your beneficiaries will receive the death benefit. The money is commonly used to pay off a mortgage or other debts or to provide funding for a child’s education. However, beneficiaries may use it however they see fit.

Pros and cons of term life insurance

• Costs less than permanent life insurance
• Simpler to understand than permanent life insurance
• Level premiums (premium does not change during the life of the policy)
• Policy expires at the end of the term
• No cash value component

TIME Stamp: You have many choices for term life insurance

Life insurance is one of the pillars of financial planning, and you have many choices of companies from which to purchase it. If you’re in the market for term life, make it a point to review policy offerings from multiple companies to be sure you get the coverage that’s best for you.

Frequently asked questions (FAQ)

What is the best amount of term life insurance.

The best amount of term life insurance will depend on your family’s needs. To get a rough estimate, use the 10X formula.

• Multiply your annual income by 10.
• Add $100,000 per child to cover the cost of college.

So, if you earn $80,000 annually and have two children, your estimate would be as follows:

$80,000 X 10 = $800,000

$100,000 X 2 = $200,000

$800,000 + $200,000 = $1 million

Using the 10X formula, you’d thus want to consider a policy with $1 million of coverage.

Of course, this is only a rough estimate. With all that’s at stake, you should consider discussing your life insurance needs with a financial advisor or an insurance agent.

Which is better: term life or whole life?

Term life and whole life insurance are made for people with different financial needs, so it’s difficult to say which is “better.” Term life is simpler and less costly, but it lacks some of the features of whole life.

Whole life costs more, and policies are more complex, but it stays in force until your death. Policies also include a cash value feature that earns interest, which you may be able to access while you’re still living.

What are the negatives of buying term life insurance?

Term life insurance lacks some of the features of whole life and other types of permanent life insurance. For example, a term life policy stays in force only for a set amount of time; after the term ends, you no longer have coverage. Term life also does not have a cash value feature.

At what age should you stop paying term life insurance?

There’s no set age at which you should stop having life insurance. Understand, however, that needs do change as we get older. By the time most people are in their 60s or 70s, their mortgage is paid off, and their children are independent. That’s a point at which they can consider dropping life insurance altogether or reducing insurance to cover final expenses only.

The information presented here is created independently from the TIME editorial staff. To learn more, see our About page.

• Travel Insurance

Travel Insurance — Must-Have or Good-to-Have?

If travel is on the horizon for you this year, then getting sufficient travel insurance is a worthy investment for peace of mind for your next adventure.

by Sihan Chia on Apr 20, 2024

Whether it’s a weekend getaway or taking the road less travelled on a month-long adventure , planning ahead is crucial to ensure a smooth and hassle-free trip. 

An essential aspect of travel planning is purchasing travel insurance. With a plethora of options available, it’s tempting to opt for the cheapest travel insurance plan available. But is the cheapest always the best choice? Read on to learn how to make an informed decision when it comes to purchasing travel insurance and some scenarios where investing in a more expensive plan might be beneficial.

The Temptation of Cheap Travel Insurance

In today’s digital age, finding cheap travel insurance is just a few clicks away. Many budget-friendly options promise adequate coverage at a fraction of the cost of premium plans. While saving money is always a plus, it’s essential to understand what you’re getting for your money.

Related: How Travel Insurance Can Protect Your Refund Rights for Flight Cancellations and Delays

What does cheap travel insurance typically cover.

Cheap travel insurance plans often offer basic coverage, which may include:

• Trip cancellation or interruption
• Baggage loss or delay
• Emergency medical expenses
• Emergency evacuation

While these coverages are essential, they may have limitations in terms of coverage amounts, exclusions, and deductibles. For instance, a cheap plan may have a low coverage limit for emergency medical expenses or exclude coverage for adventure sports or pre-existing medical conditions .

Related: What’s Inflating Your Travel Expenses This Year?

When is it worth investing in a more expensive plan, extended coverage and higher limits.

If you’re embarking on a high-value trip or travelling to a destination with high medical costs, investing in a more expensive travel insurance plan with higher coverage limits can literally be lifesaving if emergencies arise. Premium plans may provide:

• Higher coverage limits for emergency medical expenses including evacuation
• Coverage for adventure sports and activities
• Additional benefits such as trip delay, missed connections, and rental car damage

Related: Average Costs and Benefits of Travel Insurance

Pre-existing medical conditions.

If you have pre-existing medical conditions , opting for a cheap travel insurance plan may not provide sufficient coverage. Many budget-friendly plans exclude coverage for pre-existing conditions or offer limited coverage, which can leave you vulnerable to significant out-of-pocket expenses in case of a medical emergency abroad.

Related: Afraid of Getting Your Travel Insurance Claim Rejected? Take These Precautions

Comprehensive coverage.

For travellers seeking comprehensive coverage, including cancel for any reason (CFAR) or upgrade options for lost or stolen items, a more expensive travel insurance plan may be worth the investment. Premium plans often offer:

• Cancel for any reason coverage
• Upgrade options for lost or stolen items
• Enhanced 24/7 travel assistance services

Related: Travel Insurance From Airlines vs Insurance Companies – Which is Better?

Risks of insufficient travel insurance coverage.

Opting for the cheapest travel insurance plan without carefully reviewing the coverage details can expose you to potential risks such as:

Financial Risks

Inadequate coverage for emergency medical expenses, trip cancellation, or lost baggage can result in significant financial impact on you. Medical emergencies abroad can lead to exorbitant medical bills, and without sufficient coverage, imagine the horror of you paying out-of-pocket!

Limited Protection

Cheap travel insurance plans often come with limitations and exclusions that may not provide adequate protection for your specific travel needs. For instance, exclusions for adventure sports or pre-existing medical conditions can leave you unprotected in case of an accident or illness related to these activities.

Additional Stress

Dealing with unexpected situations such as lost baggage, flight cancellations, or medical emergencies without adequate travel insurance coverage can be stressful and ruin your travel experience.

Related: How To Survive and Thrive as a Solo Traveller

How to make an informed decision.

Assess Your Travel Needs

Before purchasing travel insurance, assess your travel needs and the potential risks associated with your trip based on the following factors:

• Destination and travel activities
• Value of your trip and prepaid expenses
• Health condition and medical history

Compare Plans

Shop around and compare different travel insurance plans to find one that offers the best value for your money. Pay attention to the coverage limits, exclusions, deductibles, and additional benefits offered by each plan.

Read the Fine Print

Carefully read the policy terms and conditions, including the coverage exclusions and limitations. Make sure you understand what is covered and what is not to avoid any surprises in case of a claim.

Consult An Insurance Expert

If you’re unsure about which travel insurance plan to choose, call and ask an insurance expert or travel advisor who can help you find a plan that meets your specific needs and provides adequate coverage for your trip. It’s always better to get the conversation on record, preferably on email so you can clarify any questions before purchasing. 

While cheap travel insurance can save you money upfront, it may not always provide sufficient coverage for your travel needs. 

Investing in a more expensive travel insurance plan with comprehensive coverage can offer better protection and peace of mind, especially for high-value trips or travellers with pre-existing medical conditions. By assessing your travel needs, comparing different plans, and reading the fine print, you can make an informed decision and choose a travel insurance plan that offers the best value for your money. 

Ultimately, we travel to relax and create happy memories for ourselves and our loved ones, so all you need is that one purchase to ensure a safe and worry-free experience.

Compare the best travel insurance plans available on our platform before you fly!

Compare Best Travel Insurance in Singapore Find Out More

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Travel Diaries: 5 Safest Travel Destinations in the World

How to Pick the Best Travel Insurance

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Cover Image: Unsplash

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Best term life insurance for 2024

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Mandy Sleight has been a licensed insurance agent since 2005. She has three years of experience writing for insurance websites such as Bankrate, MoneyGeek and The Simple Dollar. Mandy writes about auto, homeowners, renters, life insurance, disability and supplemental insurance products.

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Best term life insurance companies

How to find the best term life insurance company for you, frequently asked questions.

Not everyone needs life insurance that covers you for your entire life. For anyone looking for more temporary coverage — like those with young children or a mortgage to pay off — there is term life insurance. Term life insurance provides coverage for a pre-set period of time, which is usually between 10 and 30 years. In exchange for your regularly paid premium, your beneficiaries receive a payout if you die while the policy is active. However, the payout tends to be lower compared to other types of life insurance policies. Bankrate’s guide to the best term life insurance can help you find an insurer that meets your policy needs and budget.

Compare life insurance providers quickly and easily

See which provider is right for you.

Whole life insurance combines life insurance with an investment component.

• Coverage for life
• Tax-deferred savings benefit if premiums are paid
• 3 variations of permanent insurance: whole life, universal life and variable life include investment component

Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.

• Fixed premium over term
• No savings benefits
• Outliving policy or policy cancellation results in no money back

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The best term life insurance companies depend on an individual’s needs and preferences. While your quoted premium will typically not vary as much as for life quotes as home or auto insurance, different companies do offer different coverage types and levels. We chose the following companies based on their third-party financial strength and J.D. Power customer satisfaction scores , as well as the policy options and available coverage capacities (the maximum dollar amount a policy can be). It may be helpful to start your research with the following providers:

Why we chose it: State Farm has the highest J.D. Power score for customer satisfaction on our list.

State Farm is our 2024 Bankrate Awards winner for Best Term Life Insurer for the third year in a row thanks to its superior AM Best score and near-nationwide availability. State Farm offers several term insurance products, but its return-of-premium policy option may be particularly helpful for certain term life insurance policyholders. This add-on coverage (also known as a life insurance rider ) lets policyholders choose between a 20- or 30-year payment term and receive a portion of their premiums back if they outlive the term. The return-of-premium policy can be renewed annually until age 95. While the return-of-premium option comes at an additional cost, it also builds cash value , which is rare in a term life insurance policy.

Why we chose it: Mutual of Omaha offers easy online quoting for its term life insurance policies and a wide array of riders for potential policy customization.

If you want to get an idea of how much term life insurance might cost, Mutual of Omaha offers a term life insurance quote tool online. Enter your gender, date of birth, tobacco usage and coverage amount to get a rate. Mutual of Omaha offers a plethora of additional riders that can be added to its term life policies. It should be noted that not every rider can be used with every type of policy. To verify how much coverage you need and which riders can be added to your policy, you may want to consult with an agent. This company also offers a locator service to help you find a financial advisor near you.

Why we chose it: Pacific Life has term life insurance policy options with high coverage levels.

Anyone wanting to tailor their term life insurance with riders or purchase higher coverage limits might consider Pacific Life for term life insurance. The carrier offers two policy options, Promise Term and Elite Term, both of which are convertible to cash value life insurance. Its Promise Term policy offers a minimum amount of $50,000 in coverage, while the Elite Term starts at $750,000 and goes to $3 million or more. Available options include a waiver of premium for disability, as well as a terminal illness and child term rider.

Why we chose it: Northwestern Mutual offers a wide array of informational resources and policy management tools online.

Northwestern Mutual is the largest life insurer in the U.S. by direct premiums written, with just over 7 percent of the total market share. The company has been insuring consumers for more than 150 years. Its term policies allow you to select your coverage period based on either a set amount of years or until a specific age, depending on which option is most suitable for you. Northwestern Mutual plans are also convertible to whole life insurance , meaning you may be able to adjust your policy as your needs evolve. The company’s A++ (Superior) financial strength rating from AM Best is the highest level available. However, the company only offers one term life insurance rider, so if you want greater policy customization, it may not be the carrier for you.

Why we chose it: Guardian life insurance offers four different term lengths and a long list of potential riders.

Guardian's term life insurance policies are available in four term lengths. The carrier also has a long list of riders for potential policy customization, including a guaranteed renewability clause in the event that you are diagnosed with a serious illness. However, be aware that the company does not offer a network of local agents, so if you prefer to handle your insurance needs face-to-face, you may not be satisfied with the level of service.

There are several factors to consider when shopping for a quality term life insurance policy. Since your life insurance will ultimately be responsible for providing the coverage you want for your family, these considerations may be beneficial to keep in mind when determining which provider is right for you. In addition to policy types, you could consider the following.

Consider customer satisfaction scores and financial strength ratings

Customer satisfaction scores may provide insight for consumers looking to purchase insurance products. These scores reflect how satisfied existing customers may be with the customer service and claims process. You might use these scores to get an idea of how your customer experience could be and which carrier might best fit your expectations.

A life insurance company’s financial strength score reflects its past ability to pay out claims and could help you decide if a company is financially sound. Third-party agencies such as AM Best and S&P publish financial strength ratings for each major provider.

Consider your personal situation

Term life insurance remains active for only a set number of years. To decide whether term life insurance is right for you, it may be helpful to consider what you want coverage for. Do you simply want coverage while your children are young, or would you prefer lifelong coverage?

While term life insurance may be sufficient for temporary needs, like ensuring you could pay off debt and finance college for your kids if you were to pass away, it may not be the right choice if you want coverage for longer. If you need coverage for final expenses or to take care of a lifelong dependent, permanent life insurance may be a better choice. There are several options to choose from, including:

• Whole life insurance : Whole life offers level premiums and a guaranteed death benefit for life. It also builds cash value over time, which you may be able to access through withdrawals or loans. 
• Universal life insurance : Similar to whole life, universal life offers permanent coverage with more flexibility. You can increase or decrease premium payments or the death benefit if life circumstances change. 
• Final expense life insurance : If you only need a small amount of coverage or have serious health issues, final expense life insurance may be your best option. It works like whole life, but doesn’t require a medical exam. Some policies are guaranteed issue, meaning there is no medical exam or health questions on the application. 

Compare multiple quotes

Getting quotes for different types and levels of coverage may help you get an idea of how much you’ll pay for your life insurance. However, keep in mind that term life insurance quotes for the same person and policy type likely won’t vary as much from company to company as auto insurance or home insurance quotes do.

How does term life insurance work?

Term life insurance is a type of life insurance that offers coverage for a set period of time, or term. Term life is usually the most affordable type of life insurance because it only lasts for a specific number of years, usually 10 to 30 years. Unless you buy return-of-premium life insurance, you receive nothing back if you outlive the term. However, many term life insurance policies offer the option to convert to a permanent life insurance policy at the end of the term. Many carriers also provide the option to renew a term life policy annually if you still need coverage past the expiration date.

What is the difference between term and whole life insurance?

Term insurance is designed to provide a death benefit if the insured passes away within the policy term. As the name suggests, term life insurance remains active for a predetermined “term,” which is the window of time that the policyholder chooses — typically between 10 and 30 years. When the term expires, the policyholder stops paying the premiums and the death benefit will no longer be paid out. Whole life insurance , on the other hand, is a type of permanent policy that pays out when the insured dies as long as premiums are paid. It typically contains two parts: a death benefit and a cash value component. Because whole life insurance policies usually have larger payouts, premiums can be two to three times more expensive than a term policy.

What factors impact my life insurance premium?

Life insurance premiums are largely based on mortality risk. In general, the higher the likelihood someone has of passing away while the policy is active, the higher the premium will be. Each insurer has its own underwriting algorithm for calculating your rate. Although each underwriting process is different, your age, gender, weight, health conditions, smoking history and occupation are typically used to help calculate your premium. The amount of coverage that you want to purchase is another key factor in determining the cost of life insurance . For those looking for cheap life insurance , it may be wiser to start shopping at a younger age.

Does having a preexisting condition impact my ability to purchase term life insurance?

Yes, having a preexisting condition may impact your ability to purchase term life insurance. Different conditions may be considered more or less serious by different insurers. If a life insurance provider does approve you for a term life policy with a preexisting condition, your premium may be high to reflect the health risks. Insurance providers may be more likely to approve you if you have conditions that can be managed. For instance, if you have Type 2 diabetes and maintain a healthy lifestyle, you may be more likely to be approved for term life insurance. If you have a preexisting condition, speaking with a licensed insurance agent may help you navigate your life insurance options.

Is term life insurance cheaper than whole life insurance?

The cost of life insurance will vary based on your policy details and personal rating factors, but term life insurance coverage is typically cheaper than whole life insurance, a type of permanent coverage. This is because whole life insurance is designed to offer coverage for your entire life and guarantee a payout to your beneficiaries, as long as premiums are paid and terms of the policy are met. Term coverage, on the other hand, may not pay out a death benefit if you outlive the policy term and do not renew your coverage. That being said, the cost of life insurance coverage varies based on coverage amount and individual risk rating factors, so a term policy with a high coverage amount for an older individual may cost more than a permanent policy for a younger applicant with a low coverage amount.

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Best Annual Travel Insurance in 2024

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

If you’re a frequent traveler, annual travel insurance may be something you’ve been considering. Unlike single-trip insurance, annual travel insurance plans can cover you for an entire year, no matter how often you’re on the road.

Let’s look at the best yearly travel insurance companies, why we choose them and the coverage you can expect.

Factors we considered when picking travel insurance companies

We used the following criteria when choosing which companies we thought were best:

Cost . Annual plans can be expensive — depending on the type of coverage you choose — so we wanted ensure that they stayed affordable. 

Types of coverage . Travel insurance for annual travelers can be limited in its coverage. We picked the ones with the broadest range of coverage for possible travel disruptions.

Coverage amounts . Annual trip insurance isn’t worth much if your limits are too low. Instead, we wanted plans with reasonable coverage amounts. 

Customizability . If your travels take you to different places, you’ll want the ability to customize your plan. The best annual travel insurance plans can provide this. 

» Learn more: What does travel insurance cover?

An overview of the best annual travel insurance

We gathered quotes from various travel insurance companies to determine the best annual travel insurance policies. In these examples, we used a year-long trip by a 22-year-old from Alabama. We indicated the main countries of travel as France and Malaysia, and when asked, put the total trip costs at $6,000.

The average cost for an annual travel insurance plan came out to $220. The plans ranged from $138-$386.

Let’s take a closer look at our top recommendations for annual travel insurance.

1. Allianz Travel

What makes Allianz travel insurance great:

Lower than average cost.

Provides health care and travel insurance benefits.

Includes rental car insurance up to $45,000. 

Here’s a snippet from our Allianz Travel insurance review :

“AllTrips Basic (annual plan) is suitable for those who would like emergency medical coverage while abroad but don't need trip cancellation and interruption benefits. The AllTrips Prime, Executive and Premier plans provide an entire year of comprehensive travel insurance benefits.

The Executive and Premier plans offer various levels of trip cancellation and interruption benefits. The Executive plan is specifically designed for business travelers since it offers protection for business equipment.”

2. Seven Corners

What makes Seven Corners great:

Offers up to $20,000 for acute coverage of pre-existing conditions. 

Includes up to $1 million for emergency medical evacuation. 

Optional add-on for adventure sport activities.

$0 deductible available. 

Here’s a snippet from our Seven Corners review :

“Seven Corners offers one annual policy called Travel Medical Annual Multi-Trip. The policy can be customized depending on how long you plan to be away from home for any one trip. You can travel as much as you like during the 364 days, so long as any one trip doesn’t exceed the option selected — 30, 45 or 60 days.”

What makes IMG great:

Good customizability with medical evacuations and sports coverage. 

Low $250 deductible.

Includes coverage for semi-private hospital rooms. 

Here’s a snippet from our IMG review:

“Some policies provide emergency medical evacuation coverage, while others skip this benefit entirely. This benefit may be more important to you if you travel to a remote location or engage in physical activity such as trekking.

More comprehensive plans may include other benefits such as assistance with acquiring a new passport, reimbursing reward mile redeposit fees or coverage for pre-existing conditions. If these are something you’re interested in, be sure to check that your policy includes these options.”

4. Trawick International

What makes Trawick International great:

100% coverage for trip cancellation and trip interruption. 

Emergency medical evacuation included. 

Trip delay reimbursement coverage. 

Here’s a snippet from our Trawick International review :

“Trawick International is a comprehensive travel insurance provider that offers trip delay and cancellation insurance, baggage delay coverage, medical coverage and medical evacuation, rental car damage protection, and even COVID-19 coverage among its various policies.

Trawick covers trips for worldwide destinations, including for foreign nationals coming to the U.S.”

What does travel insurance cover?

You’ll find a wide variety of coverage types offered by travel insurance policies. This is true whether you're purchasing a single-trip or annual travel insurance plan. Here are some common types you can expect to find:

Accidental death insurance .

Baggage delay and lost luggage insurance .

Cancel for Any Reason insurance .

Emergency evacuation insurance .

Medical insurance .

Rental car insurance .

Trip cancellation insurance .

Trip interruption insurance .

How to choose the best annual travel insurance policy

While we’ve highlighted some of the best annual travel insurance companies, the truth is that the best plan for you isn’t going to be the best plan for someone else. If you’re interested in buying annual travel insurance, you’ll want to collect a variety of quotes to see which policy best fits your needs.

This may mean opting for a plan that covers pre-existing conditions or one that specifically includes high-risk activities. Or, if you’re in a country where health care is notoriously expensive, you may want to choose a policy with higher maximums.

Many credit cards come with complimentary travel insurance .

Whatever the case, do your research first and review all the plan details before making your purchase.

» Learn more: How to find the best travel insurance

If you want to buy annual travel insurance

Annual travel insurance can be a great option if you’re often out of town. With such a wide range of policies available, selecting a plan that fits your needs is easy. We’ve done some of the work for you by choosing the best annual travel insurance companies, all of which made the top of the list for their cost, customizability, types of coverage and plan maximums.

Like any travel insurance policy, the cost of your plan is going to vary. Factors that may affect the cost of your annual travel insurance include your age, where you’re going, how long you’ll be traveling, your policy maximums and whether preexisting conditions are included.

Although not all travel insurance providers offer annual travel insurance, many of them do. We’ve gathered together the five best, including Allianz Travel, World Nomads, Seven Corners, IMG and Trawick International.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

on Chase's website

1x-10x Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

1x-2x Earn 2X points on Southwest® purchases. Earn 2X points on local transit and commuting, including rideshare. Earn 2X points on internet, cable, and phone services, and select streaming. Earn 1X points on all other purchases.

50,000 Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.

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Find the best credit card for you

Here are the 3 best chase balance transfer credit cards of 2024, save money with these chase credit cards that offer 0% introductory aprs on balance transfers..

Credit card interest rates are often higher than other financial products like personal loans or mortgages so it's best to pay off your credit card balance in full every month . However, that isn't always possible so many people may wind up with high-interest credit card debt. In these situations, taking advantage of a 0% balance transfer offer can reduce the interest you pay and help you pay off your credit card debt more quickly.

Chase is known for issuing some top travel credit cards , but it also has several cards that offer an intro 0% APR for balance transfers. Consider these Chase balance transfer credit cards if you're hunting for a balance transfer offer. (See our methodology for information on how we chose the best Chase balance transfer credit cards).

Best Chase balance transfer credit cards

• Best for long intro APR: Chase Slate Edge℠
• Best for cash back: Chase Freedom Unlimited®
• Best for rotating bonus categories: Chase Freedom Flex℠

Best for long intro APR

Chase slate edge℠, welcome offer.

Get an automatic review for a credit limit increase when you pay on time and spend $500 in your first six months.

0% for 18 months from account opening on purchases and balance transfers

Regular APR

20.49% - 29.24% variable

Balance transfer fee

Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.

Foreign transaction fee

Credit needed.

Excellent/Good

Member FDIC. Terms apply. Information about the Chase Slate Edge℠ has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

• No annual fee
• Lower your interest rate by 2% each year: Automatically be considered for an APR reduction when you pay on time, and spend at least $1,000 on your card by your next account anniversary
• 3% foreign transaction fee
• No rewards program

Who's this for? The Chase Slate Edge℠ does one thing, and it does it well — reduce the interest you pay. Its longer-than-usual introductory APR offer makes it ideal for those seeking more time to pay off their balance.

Balance transfer offer : New cardholders are eligible for an intro 0% APR on eligible balance transfers and purchases for 18 months from account opening, then a 20.49% to 29.24% variable APR applies. This is one of the longest intro APR offers available and is especially useful since it applies to purchases, too.

An intro balance transfer fee of either $5 or 3% of the amount of each transfer (whichever is higher) applies to transfers completed in the first 60 days of account opening. After that, the balance transfer fee is $5 or 5% of the amount of each transfer (whichever is higher).

[ Jump to more details ]

Best for cash back

Chase freedom unlimited®.

Enjoy 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 6.5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

Welcome bonus

INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!

0% for the first 15 months from account opening on purchases and balance transfers

3% of each transaction in U.S. dollars

Member FDIC. Terms apply.

Read our Chase Freedom Unlimited® review.

• Rewards can be transferred to a Chase Ultimate Rewards card
• Generous welcome bonus
• 3% fee charged on foreign transactions

Who's this for? The Chase Freedom Unlimited® is geared toward those who want to earn cash back on their everyday spending and still want access to a helpful intro APR offer.

Balance transfer offer : New card members receive an intro 0% APR for purchases and balance transfer for the first 15 months, after that a variable 20.49% to 29.24% APR applies. For the first 60 days of account opening, there's an intro balance transfer fee of 3% of the amount of each transfer ($5 minimum). After that, a standard balance transfer fee of $5 or 5% of the amount of each transfer applies, whichever is greater.

Best for rotating bonus categories

Chase freedom flex℠.

5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%), 5% cash back on travel booked through the Chase Ultimate Rewards®, 3% on drugstore purchases and on dining (including takeout and eligible delivery services), 1% cash back on all other purchases

Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening.

Member FDIC. Terms apply. Information about the Chase Freedom Flex℠ has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

Read our Chase Freedom Flex℠ review.

• Opportunity to earn up to 5% cash back in select categories upon activation
• Bonus categories must be activated each quarter

Who's this for? The Chase Freedom Flex℠ is a great card for anyone who enjoys squeezing the most value out of their credit card thanks to its generous rotating quarterly bonus categories.

Balance transfer offer : New cardholders can take advantage of a 0% intro APR for the first 15 months on purchases and balances transfer, then a 20.49% to 29.24% variable APR applies. An intro balance transfer fee of either $5 or 3% of the amount of each transfer applies to transfers completed in the first 60 days. After that, the standard balance transfer fee is 5% of the amount of each transfer or $5, whichever is greater.

More on our top Chase balance transfer credit cards

The Chase Slate Edge℠ is a no annual fee card with several features that can help you pay less interest, but doesn't earn rewards.

Get an automatic review for a higher credit limit when you pay on time and spend $500 in the first six months.

Notable perks

With the Chase Slate Edge , you are automatically considered for a 2% APR reduction if you pay your monthly bill on time and spend at least $1,000 on the card before your next account anniversary (terms apply). While you'll want a plan to pay off your balance transfer before the interest kicks in, this feature can help you lower your APR compared to what you might pay with other credit cards.

This card's insurance benefits include purchase protection, extended warranty protection, roadside dispatch and rental car collision and theft coverage (secondary in the U.S.).

[ Return to card summary ]

The Chase Freedom Unlimited® is one of CNBC Select's top no-annual-fee cash-back credit cards with a unique intro bonus and a handful of useful benefits to complement its cash-back earnings.

• 6.5% cash back on travel booked through Chase Travel
• 5% back on Lyft rides (through Mar. 31, 2025)
• 4.5% cash back on dining
• 4.5% cash back at drug stores
• 3% cash back on all other purchases (on up to $20,000 spent in the first year)

Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year).

Cardholders can earn 5% cash back on Lyft rides through March 2025 and enroll for three complimentary months of DashPass (activate by Dec. 31, 2024). Purchases are also covered by a range of built-in protections like rental car collision damage insurance (secondary in the U.S.), extended warranty coverage, purchase protection and trip cancellation and interruption insurance.

While this is a cash-back credit card , you can boost the value of the rewards you earn by pairing this card with a Chase card that allows points transfers (such as the Chase Sapphire Preferred® Card ). By transferring the rewards you earn to travel partners like World Hyatt, United MileagePlus and Air Canada Aeroplan, you can potentially book luxury hotels and flights for fewer points.

The Chase Freedom Flex℠ packs a punch with generous rewards in bonus categories that change every quarter and an easy-to-earn welcome bonus.

• 5% cash back on the first $1,500 spent in categories that change each quarter, then 1% cash back (activation required)
• 5% cash back on travel booked through Chase Ultimate Rewards®
• 3% cash back on dining
• 3% cash back at drug stores
• 1% cash back on all other purchases

Earn a $200 bonus after spending $500 on purchases in the first three months from account opening. 

Cardholders receive discounts and special perks with partners like Lyft and DoorDash. There are also many valuable built-in protections for a no-annual-fee card, including:

• Cell phone insurance
• Rental car insurance (secondary in the U.S.)
• Extended warranty coverage
• Purchase protection
• Trip cancellation and interruption insurance

When you have a Chase card that unlocks the ability to transfer Chase points to hotel and airline partners (like the Chase Sapphire Preferred® Card) , it increases the value of the Freedom Flex. So this isn't only a strong standalone rewards credit card , but it has synergies with other cards.

How to complete a Chase balance transfer

Chase typically charges a balance transfer fee from 3% to 5% with a $5 minimum. Before you complete a balance transfer , be sure the interest you save will outweigh the fee.

There are several ways to do a balance transfer with Chase. One of the best and easiest options is to complete a balance transfer when you apply for a card. When you do this, you'll be able to make the most out of your intro APR because any 0% interest timeframe you qualify for begins when you open the card.

If you want to perform a balance transfer with a Chase card you already have, you'll need to log in to your account and follow these steps:

• Click "Pay & Transfer"
• Then click on the "Transfer" dropdown menu
• Select "Card balance transfers"

You can then select any of your Chase cards from a dropdown menu and see what balance transfer offers are available.

Are Chase balance transfers worth it?

When you make a balance transfer, you'll generally pay a fee of 3% to 5% of the balance. To determine whether a balance transfer is worth it, calculate how much you would save in interest compared to how much you'd pay in transfer fees.

What is one disadvantage of a 0% interest balance transfer card?

Aside from the balance transfer fees, the biggest downside to a balance transfer is you'll have the same amount of credit card debt as before. If you don't have a plan, or the resources, to pay off your debt before the intro APR expires, you'll be stuck paying interest once again.

Do balance transfers hurt your credit?

A balance transfer doesn't directly hurt your credit score and could help improve your credit if you're able to pay down your debt. However, you'll want to keep in mind that your credit score will temporarily dip when you apply for new credit (including a balance transfer card).

Bottom line

The top balance transfer cards Chase issues offer intro APR periods of 15 to 18 months, and these intro APR offers also apply to purchases, making them even more useful. If you're interested in paying less interest , these are some of the best offers available. When you're in credit card debt, your primary focus should be repayment, not earning rewards, but the fact that some of the cards on this list earn rewards is a nice bonus.

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Liquidity risks at Canadian life insurance companies

Introduction.

Life insurers, like many asset managers, use fixed-income markets to implement their investment strategies. A key quality of fixed-income markets is liquidity. In a liquid market, participants can trade quickly at prevailing prices. This allows asset managers to use securities as collateral or sell them to manage their risk of not meeting short-term cash or collateral obligations, known as liquidity risk. 1

However, during periods when many market participants seek liquidity at the same time, the demand for liquidity may overwhelm the capacity or willingness of intermediaries, like bank-owned dealers, to provide it. This risk has come into focus for practitioners and policy-makers since the COVID-19 crisis, the episode of extreme market stress at the onset of the COVID‑19 pandemic in March 2020. 2 At that time, central banks around the world intervened to restore market liquidity, including by opening new emergency lending facilities for a wide range of market participants. 3

Understanding the potential behaviour of market participants during such episodes can help central bankers develop policy. The Bank of Canada has therefore been deepening its understanding of how various types of market participants manage their liquidity risks and the potential impact of their actions on fixed-income markets. This work has included analyzing mutual funds, hedge funds and pension funds. 4

We conducted two rounds of interviews with representatives from four of the largest Canadian life insurers and analyzed several data sources to investigate how life insurers’ business model results in liquidity risks and how they manage this risk. 5 Specifically, we use three data sources:

• the National Balance Sheet Accounts (NBSA) from Statistics Canada, which include aggregated balance sheet information for all Canadian life insurers
• life insurers’ investment returns from the Office of the Superintendent of Financial Institutions (OSFI), which include granular information on assets and derivative positions for the three largest OSFI-regulated insurance companies—Manulife, Sun Life and Canada Life
• the Market Trade Reporting System from the Canadian Investment Regulatory Organization, which contains detailed, dealer-reported information about Canadian bond trades, including those involving life insurers

For clarity, we indicate on each chart that the samples of life insurance companies differ across these data sources.

In brief, we find that the two most important liquidity risks that Canadian life insurers must manage are unexpected payouts resulting from policyholder behaviour and margin calls from derivatives. We examine the effects on insurers from the COVID‑19 crisis and the period of rising interest rates in 2022, which serve as case studies in liquidity risk management. We find that the two liquidity risks did not materialize significantly in either period, which allowed life insurers to continue their typical investment pattern of purchasing long-dated corporate and provincial bonds. These purchases provide an important source of funding for Canadian bond issuers, which supports market liquidity and the real economy.

Life insurers are among the largest institutional investors in Canada

Life insurers are companies that, as the name implies, specialize in providing life insurance and related products. The sector has a small number of large companies that individually manage assets of comparable value to those of some of Canada's big pension funds. This makes life insurers among the largest institutional investors in Canada, managing around $1 trillion of financial assets associated with their Canadian business lines as of the first quarter of 2023 ( Chart 1 ). A large proportion of these assets are fixed-income securities, mainly bonds ( Chart 2 ). 6 Therefore, life insurers can alleviate or exacerbate strains on liquidity in fixed-income markets through their transactions.

Chart 1: Life insurance companies are among the largest institutional investors in Canada

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Life insurers sell financial products that are typically of two types:

• life insurance
• investments such as annuities and mutual funds

These products offer future payoffs to holders, which creates liabilities for life insurers. To meet these future obligations, insurers invest the cash they receive from their clients.

Overall, Canadian life insurers manage roughly equal proportions of assets associated with each type of product. Investment products are often managed in distinct funds, and their liquidity risks come primarily from investor redemptions. Mutual funds manage this risk in a similar way, a topic that the Bank has analyzed in the past. 7 We therefore focus our analysis on life insurance products because they present liquidity risks that are unique to life insurers.

Canadian life insurers use bonds and derivatives to match assets and liabilities

Understanding the risks inherent in life insurers’ business models is helpful for understanding their liquidity risks and how they manage them. 8 A key risk from the business model comes from the long time horizons over which life insurance contracts pay out. Insurers estimate these horizons, which can be several decades, by using actuarial modelling of policyholders’ longevity and morbidity. This means life insurance products have relatively high duration, meaning they are sensitive to changes in interest rates. This can create a significant risk for life insurers if assets and liabilities respond differently to interest rates. For example, a drop in interest rates could increase the present value of an insurer’s liabilities by more than the increase in the value of an insurer’s assets, making it more difficult for the insurer to meet its obligations to policyholders.

Life insurers choose assets with similar durations and liquidity to hedge the risks from their liabilities. This practice, known as asset-liability management (ALM), aims to immunize insurers against interest rate risk. In Canada, it also helps to satisfy regulatory capital requirements, which are established by OSFI or Autorité des marchés financiers (AMF) for insurers headquartered in Quebec. 9 ALM typically matches an insurer’s assets and liabilities to the average duration and a range of specific durations to protect against relative changes in long- and short-term interest rates. The latter practice is called key rate duration management.

Fixed-income securities are natural investments for life insurers’ ALM since these securities can have a high duration like life insurance products ( Chart 2 , panel a). Among these securities, Canadian life insurers hold primarily long-term corporate or provincial bonds ( Chart 2 , panel b). Regular cash premiums from policyholders are typically invested into these instruments as quickly as possible, making life insurers a stable source of funding for bond issuers. Provincial bonds and, to a greater degree, corporate bonds are less liquid than Government of Canada (GoC) bonds but have the benefit of higher yields. Despite the relative illiquidity of such bonds, these holdings do not expose insurers to large liquidity risks because their liabilities are also relatively illiquid, as will be explained in the section on liquidity risks .

Life insurers also invest in foreign fixed-income assets and alternative assets with high duration, such as infrastructure, real estate, private debt and private equity. These assets help insurers diversify their portfolios and can, to some extent, substitute for high-duration domestic corporate and provincial bonds, which can be in limited supply ( Chart 2 , panel a). These alternative assets also tend to offer insurers higher yields than bonds.

Chart 2: Life insurers’ assets are concentrated in fixed-income securities, most of which are corporate bonds

Composition of total assets and fixed-income assets as at the end of the first quarter of 2023

Note: Figures include the market value of life insurers’ Canadian-domiciled branches but not life insurers’ mutual funds. Sources: Office of the Superintendent of Financial Institutions and Bank of Canada calculations Last observation: 2023Q1

Life insurers also use derivatives to hedge exposures to risks. These exposures are from two main sources:

• residual interest rate risk
• investment assets risk

Securities and alternative assets with durations similar to those of insurance products are often in limited supply. One reason is that bond issuers rarely raise public debt with terms greater than 30 years while some insurance liabilities have longer terms. Life insurers therefore use derivatives such as interest rate swaps and bond forwards to extend the duration of their portfolios ( Chart 3 ). We find that the average term to maturity of these derivatives is typically long, ranging from 5 to just under 15 years. This means that interest rate derivatives typically carry risks comparable with those of bonds of similar terms to maturity, particularly for interest rate derivatives.

In addition to extending duration, derivatives are well suited to quickly adjust mismatches in duration between assets and liabilities because they are relatively liquid and do not require significant initial cash outlays. These quick adjustments can be needed when the values of assets and liabilities respond differently to a large change in interest rates or other economic conditions, causing their durations to become misaligned. This is called convexity risk, which investors can hedge by using certain derivatives like swaptions.

Derivatives also serve to hedge risks not related to interest rates. For example, investing in foreign assets to match domestic liabilities produces currency risk. Life insurers typically hedge this risk by using cross-currency swaps or currency forwards, which are the second-largest class of derivatives for life insurers ( Chart 3 ). Large investments in corporate bonds expose life insurers to default risk. However, credit derivatives, which provide protection against default, make up less than 1% of the notional value of derivatives held by insurers.

Chart 3: Life insurers use derivatives to hedge against interest rate and foreign exchange risks

Note: Figures include the derivative securities of life insurers’ Canadian-domiciled branches but not life insurers’ mutual funds. Sources: Office of the Superintendent of Financial Institutions and Bank of Canada calculations Last observation: 2023Q1

Life insurers face two main liquidity risks

The business model and investment strategy of Canadian life insurers give rise to two main liquidity risks:

• lower-than-expected cash inflows if a policyholder temporarily or permanently stops paying their premiums—known as a lapse
• higher-than-expected cash outflows if contracts are redeemed before maturity—known as a surrender
• margin requirements on derivatives that can increase the need to deposit cash or securities to protect a derivatives counterparty against potential losses in the event of default

Policyholders’ behaviour may trigger a need for liquidity when economic conditions stress household finances. Policyholders typically cannot lapse or surrender a policy without facing a penalty. Life insurance liabilities can therefore be considered to be relatively illiquid. However, if economic conditions cause widespread unemployment or income loss, the resulting lapses or surrenders could impose large, immediate and unexpected cash outflows on an insurer.

Margin calls on derivatives may become unexpectedly large when the underlying risk factors, such as interest rates or exchange rates, change sharply or become volatile compared with their historical levels. Life insurers are typically positioned in interest rate and foreign exchange derivatives such that a simultaneous rise in interest rates and a weakening of the Canadian dollar would increase margin requirements.

Life insurers use liquidity coverage ratios to manage risks

We heard in our interviews that Canadian life insurers manage liquidity risks by holding a buffer so that they can meet unexpected liquidity draws. Insurers often use a liquidity coverage ratio (LCR) to estimate how large the buffer should be, similar to the framework used by banks, pension funds and other asset managers. An LCR compares the value of the buffer to the total value of possible and expected liquidity draws in a stressed scenario over a given time period. While a standardized LCR is a regulatory requirement for banks, it is not for insurance companies. This means that its specifications may vary across companies. For example, some companies may use an LCR that is based on past stressed periods to prepare for unexpected liquidity needs. Others may take a broader approach that incorporates expected liquidity needs such as operational cash flows. Companies may also have different definitions of a high-quality liquid asset. A typical LCR can be represented as:

\(\displaystyle LCR\) \(\displaystyle=\, \frac{cash + high\ quality\ liquid\ assets + other\ liquidity\ sources}{surrenders + margin\ calls+other\ potential\ outflows}\) \(\displaystyle,\)

where, other liquidity sources in the numerator can include relatively illiquid or volatile assets that are discounted appropriately, committed credit lines with banks and expected cash contributions from policyholders within the LCR time horizon. Therefore, policyholder lapses affect the numerator by reducing expected cash contributions. In the denominator, other potential outflows may include life insurance claims, payments needed for maturing debt and capital needed for private assets. As with other liquidity sources, these inflows or outflows can vary across insurance companies.

Life insurers seek to always keep their LCRs substantially above one so that they can meet significant draws on their liquidity. The assets in buffers may differ across insurers but are typically composed of cash and relatively liquid securities like GoC or provincial bonds and bills, which represent about 20% of insurers’ financial assets ( Chart 4 ).

Chart 4: Liquid assets of the largest life insurers have been relatively stable over time

Responses from interviewees indicate that insurers typically use conservative assumptions to calibrate LCRs. Potential cash outflows are often projected using:

• multiple horizons, such as 10 days, 30 days or longer
• observations from past episodes of stress
• large hypothetical shocks to interest rates, credit spreads and policyholders’ mortality

Correlations between pricing factors, such as interest rates and exchange rates, are usually assumed to produce worst-case outcomes despite any historical tendencies to mitigate liquidity draws. In addition, life insurers make assumptions about the appropriate discount to apply to an asset’s value to capture the fact that prices may be worse in stressed situations. For example, they will assume that the value of provincial bonds will decline by more than the value of GoC bonds during periods of stress.

Life insurers continued purchasing bonds during recent periods of stress

The COVID‑19 crisis in 2020 and the period of rising interest rates in 2022 serve as case studies to better understand how life insurers managed their two main liquidity risks. The number of lapses and surrenders could have been unusually high during the COVID‑19 crisis because of widespread lockdowns that caused employment and income losses for millions of Canadians. Margin requirements on insurers’ derivative positions could have also been higher due to the volatility in financial markets during the COVID‑19 crisis and then again as interest rates rose in 2022.

The life insurers we spoke to indicated that they did not experience large lapses or surrenders from policyholders during the COVID‑19 crisis. Even so, they increased monitoring of their liquidity positions and tested their ability to withstand a potentially higher number of lapses, surrenders and payouts. They also extensively modelled changes in mortality rates from the COVID‑19 pandemic to prepare for a potential increase in payouts, although these did not become a significant draw on liquidity.

During the COVID‑19 crisis, total margin requirements for the three largest Canadian life insurers were not unusually large because the margins for interest rate and foreign exchange derivatives were offsetting ( Chart 5 ).

Chart 5: Market values of interest rate and foreign exchange derivatives offset during the COVID-19 crisis

Market value reflects profits and losses on derivatives contracts due to movements in their underlying price factors and is a proxy for the magnitude and direction of margin requirements. The offsetting market values observed in the first quarter of 2020—the peak of the COVID‑19 crisis—were driven by a decline in interest rates and a strengthening of the US dollar, which are typical movements in these markets during turmoil. In the first quarter of 2020, the three largest Canadian life insurers received margin on interest rate derivatives as the market value of these derivatives increased by $1.5 billion. This mitigated the effect of needing to post margin on foreign exchange derivatives, whose market value decreased by $3 billion.

Given that liquidity risks did not materialize at the peak of the crisis, life insurers continued purchasing long-term corporate and provincial bonds. They did this by rebalancing their portfolios out of short- and medium-term GoC bonds and using regular cash inflows from life insurance premiums.

We find that life insurers sold close to $2 billion worth of GoC bonds and purchased around $5 billion worth of corporate and provincial bonds ( Chart 6 , panel a). They sold bonds in the 2- and 5-year sectors and purchased bonds in the 10- and 30-year sectors ( Chart 6 , panel b).

This activity provided cash to bond sellers and issuers at a time when the demand for cash was high. 10 It also added to overall GoC bond selling during the COVID‑19 crisis when markets were stressed. However, any effect on market liquidity was likely small since around 80% of insurers’ sales of GoC bond took place between February 18 and March 6, the three weeks before the period of peak market illiquidity. 11

Chart 6: Life insurers continued purchasing bonds during peak of COVID-19 crisis

Cumulative net purchases, daily

Note: 30-year refers to any bond with a term greater than 10 years. Data presented include all Canadian life insurance companies and Canadian securities only. Sources: Market Trade Reporting System and Bank of Canada calculations Last observation: April 30, 2020

Similarly, the three largest Canadian life insurers made net purchases of $3.3 billion worth of bonds in secondary markets during the first half of 2022 as interest rates increased. This happened even though the margin requirements for interest rate and foreign exchange derivatives did not offset. During this period, the market value of these life insurers’ derivatives declined by $4.5 billion ( Chart 7 ). Even so, the larger margin requirements did not undermine the ability of the three largest Canadian life insurers to purchase bonds in secondary markets. This may be because the increase in interest rates was gradual and somewhat anticipated, allowing insurers to prepare for liquidity needs without disrupting their regular patterns of investing contributions from policyholders.

Chart 7: Life insurers’ bond purchases remained stable during the period of rising interest rates

Unlike other asset managers who broadly sold bonds during the COVID‑19 crisis, life insurers bought bonds. In addition, the period of rising interest rates in 2022 did not greatly affect life insurers’ usual investment pattern of stable bond purchases. While this behaviour could change under different market conditions, the findings nonetheless provide insights into the nature and severity of past periods of market turmoil that life insurers were able to withstand. This work deepens the Bank’s understanding of market stress and how various participants react during these periods. These insights combined with those the Bank has collected about other asset managers inform the design of the Bank’s policies and facilities.

• 1. For a discussion of pension fund liquidity management see G. Bédard-Pagé, D. Bolduc-Zuluaga, A. Demers, J.-P. Dion, M. Pandey, L. Berger-Soucy and A. Walton , “ COVID‑19 crisis: Liquidity management at Canada’s largest public pension funds ,” Bank of Canada Staff Analytical Note No. 2021-11 (May 2021).[ ← ]
• 2. For an in-depth description of the COVID‑19 crisis in Canada, see J.-S. Fontaine, C. Garriott, J. Johal, J. Lee and A. Uthemann, “ COVID‑19 Crisis: Lessons Learned for Future Policy Research ,” Bank of Canada Staff Discussion Paper No. 2021-2 (February 2021).[ ← ]
• 3. For a summary of the Bank of Canada’s liquidity facilities during the COVID crisis, see G. Johnson, “ A Review of the Bank of Canada’s Market Operations related to COVID‑19 ,” Bank of Canada Staff Discussion Paper No. 2023-6 (March 2023).[ ← ]
• 4. Recent work by the Bank of Canada on asset managers includes J. Sandhu and R. Vala, “ Do hedge funds support liquidity in the Government of Canada bond market? ” Bank of Canada Staff Analytical Note No. 2023-11 (August 2023), and G. Ouellet Leblanc and R. Shotlander, “ What COVID‑19 revealed about the resilience of bond funds ,” Bank of Canada Staff Analytical Note No. 2020-18 (August 2020).[ ← ]
• 5. We are grateful for the generous cooperation of Manulife, Sun Life, Canada Life and Industrial Alliance in this work.[ ← ]
• 6. This excludes assets managed on behalf of their clients, such as mutual funds.[ ← ]
• 7. To learn more about how mutual funds manage liquidity, see G. Ouellet Leblanc and R. Arora, “ How do Canadian Corporate Bond Mutual Funds Meet Investor Redemptions? ” Bank of Canada Staff Analytical Note No. 2018-14 (May 2018).[ ← ]
• 8. While we focus on economic considerations in this description, accounting and regulation can also influence life insurers’ investment strategies.[ ← ]
• 9. OSFI and the AMF impose harmonized capital requirements to ensure solvency for life insurance companies. Insurers regulated by OSFI must satisfy the Life Insurance Capital Adequacy Test. Insurers regulated by AMF must satisfy capital adequacy requirements for life and health insurance.[ ← ]
• 10. For more details, see Bank of Canada, " Fixed-income market liquidity ," Financial System Review—2022 (June 9, 2022).[ ← ]
• 11. For more on market illiquidity, see J.-S. Fontaine, H. Ford and A. Walton, " COVID‑19 and bond market liquidity: alert, isolation and recovery ," Staff Analytical Note No. 2020-14 (July 2020).[ ← ]

Bank of Canada staff analytical notes are short articles that focus on topical issues relevant to the current economic and financial context, produced independently from the Bank’s Governing Council. This work may support or challenge prevailing policy orthodoxy. Therefore, the views expressed in this note are solely those of the authors and may differ from official Bank of Canada views. No responsibility for them should be attributed to the Bank.

DOI: https://doi.org/10.34989/san-2024-7

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