Your individual or group health insurance plan may not provide any coverage outside of the U.S. One of the most expensive medical situations that can happen concerns medical evacuation or repatriation. This is the need to return home for health care to the nearest facility on U.S. soil, and even extends to the shipping of mortal remains should death occur.

The best way to explain how a vacation can go unexpectedly wrong is by reading this story about a pregnant couple who traveled to Portugal. A surprise preterm labor kept mom in Portugal until she could be transported home in a medically equipped plane. The father and new baby returned to the nearest U.S. hospital in Miami, Florida, and waited.

Single Trip Coverage is purchased around the time you make reservations and covers you for the length of your trip. Trip Cancelation covers you when you have to make changes or cancel your travel plans for ANY reason. Trip Interruption will cover costs incurred by flight delays, lost luggage, and added hotel expenses when things don’t go according to schedule. Expat Coverage takes the place of your U.S. health care plan when you move to another country, but are not fully covered by their national plan due to residency requirements. Learn more about these policies at the CDC website.

Travel insurance should be budgeted as an extension of your trip costs. It may be as minimal as 1% to 10% of your total expenses, depending on the details of the coverage and the destination.

Coverage is based on the entire trip itinerary, regardless of the number of individual destinations. If you have a cruise stopping in multiple ports or take a single tour including several countries, you are covered. When planning a trip abroad, you should also check for travel advisories.

Coverage for pre-existing conditions depends on your underlying health care plan. Travel insurance will enhance your current benefits to a large extent. If you have a pre-existing condition that was approved for benefits, it may be covered under the travel insurance plan.

When moving to a foreign country, often you are not covered by the National Health Plan unless you become a legal resident. Minor health issues may not be a problem, but major services probably will. Replace your traditional health plan with an Expat Insurance Policy, and you will continue to have health benefits available to you outside the U.S.