Cancel-For-Any-Reason (CFAR) Upgrade and When the Extra 40 Percent Is Worth It

A standard travel insurance policy only refunds your trip cost if the reason for cancellation appears on a specific covered reasons list — illness, injury, death in the family, jury duty, employer-required travel, natural disaster. Anything outside that list is not covered.

The Cancel-For-Any-Reason upgrade (called CFAR) removes that limitation. With CFAR added, you can cancel for any reason at all. You changed your mind, you are nervous about travel, a family member is unwell but not hospitalized, you have decided you do not want to go — and the insurer will refund 50 to 75 percent of your prepaid non-refundable trip cost.

CFAR costs an extra 40 to 50 percent on top of the base policy premium. So a $400 comprehensive policy plus CFAR runs $560 to $600. In return, you get the right to cancel for any reason up to 48 or 72 hours before departure.

CFAR has three strict purchase requirements: it must be added within 14 to 21 days of the first trip deposit (same window as the pre-existing condition waiver), you must insure 100 percent of the prepaid trip cost. And you must cancel at least 48 to 72 hours before scheduled departure.

For older travelers, CFAR makes sense when the trip is expensive, the timing is far out. And there is real uncertainty about whether you will feel up to traveling. It is overkill for a $1,500 weekend trip but worth strong consideration for a $15,000 cruise booked 8 months ahead.

(Sources: Squaremouth — CFAR Buyers Guide; InsureMyTrip — CFAR Explained; Allianz Travel)