Travel insurance types

So, I used to  think of travel insurance as an optional extra, since I'm a typical 20-something student who thinks they're invincible and doesn't have anything worth stealing anyway. That was until a horror trip to Montreal, where I booked the wrong ticket date and couldn't get a refund- then my laptop got stolen, in the bag where I had backed up all my term papers and essays. I've heard worse too- people never getting lost luggage back and only getting the airline's limited payment (seriously, who can buy a whole suitcase full of clothes and travel supplies for less than $50?!). Or worse, medical emergencies (or what feels like an emergency, when you're backpacking in a third world country, and you eat something that doesn't agree with your belly).

I think the line travel agents like to use is "if you can't afford travel insurance, you can't afford to travel". And to some extent, that's true. Because no matter your budget, or whether you're taking a Contiki tour or an adventure trek, there is a type of insurance to give you peace of mind and prevent your holiday being ruined by one crappy thing. Note: any companies listed are just for illustrative purposes.

1. Annual Insurance
This is great for those who work or travel abroad, or who take mini breaks at short notice, yet still want to be covered from the moment they leave. It works like any other insurance policy in that it's based on regular renewal; you pay once and you're covered for a certain period of time, instead of being covered for a limited trip.

2. Flexible coverage
If you're not going to a location with particular safety concerns, or you're not carrying valuables, and you're going for a definite period, you may want to look at a company which will let you pick and mix coverage options.

3. Medical insurance only
You may find your healthcare provider has a similar travel insurance policy. This is what you'd choose if you already have insurance policies built into your travel arrangements, such as flexi-fares, and your main concern is that you are covered for private medical attention, or should it be required, emergency medical transportation (we're talking a chopper to a top Thai hospital out of rural Laos, and whatnot)

4. Creative combination
Say you know you'll be going to a destination that's relatively safe, you don't expect to be partaking in any dangerous activities, but you know you will be acquiring valuables (shopping trip in Paris, anyone?) Think about a combination of Travelex, Prepaid Mastercard or other similar secure limited cash cards, budget medical insurance, and posting items home as soon as you get them, with a postal or courier option which provides the necessary amount of built-in insurance (make sure to keep receipts).