Scott McCartney at WSJ reviews whether one should purchase travel insurance. It is probably true for exotic trips, one should seriously consider travel insurance.

Travel agent Steve Danishek from Seattle, whom I've known for many years as a wise voice on travel issues, pointed out that the cost of a medical evacuation can be huge. "My mother, now deceased, wasn't worried about the possibility of losing the $3,000 cost of a Panama Canal cruise and didn't purchase insurance, but was stung by the $31,000 cost of the air ambulance from Panama City to Seattle for her broken hip," Mr. Danishek said.

He also pointed out that as a travel agent, he never fails to offer travel insurance, both to protect clients and to protect himself. "I am protecting myself from the possibility of future litigation if the client suffers a loss and decides to cast a net for reimbursement," he noted. "In fact, with any group traveling to Africa, I will not write an air ticket without proof that travel insurance has been purchased. This is just good business."

Doug Horstman, a ski-tour operator, suggested that the need for travel insurance should be dictated by the type of trip you're taking. "It is correct (and a carefully guarded secret within the insurance industry) that most beach vacations allow for full cancellation and/or rebooking without penalty if you find yourself in the imminent path of a hurricane," he said. "But for ski travel, there are special considerations that I believe make insurance a wise option." For ski trips, storms are a good thing since it means fresh snow, and hotels don't often refund or allow skiers to rebook even if you're stuck in Denver, he said.