Travel insurance comes in two parts: travel health insurance and trip cancellation insurance. Travel health insurance assures that any medical expenses if you become sick or injured abroad will be covered. This covers minor illnesses to serious injuries or illnesses that require potential evacuation. It will also, if necessary, cover expatriation of remains in case of a death. It is highly recommended that everyone obtains travel insurance while they are abroad. Some domestic insurance coverages will cover international travel, but it is not nearly as convenient.
Trip cancellation insurance is insurance that will pay you a percentage of the trip costs if, for some reason, you have to cancel the trip. This can be due to illness, a crisis in the country you are visiting, or other event that may cause cancellation of the entire trip.