Travel insurance is not just an optional purchase—it can be a critical legal protection. In many countries, proof of insurance is mandatory for obtaining certain visas. Policies typically cover medical emergencies, trip cancellations, lost luggage, and liability issues. Without coverage, travelers may face overwhelming costs in case of accidents or illnesses abroad, where healthcare expenses can be significantly higher. Furthermore, insurers must comply with contract laws, meaning travelers have the legal right to claim compensation as outlined in their policies. Always read the fine print, as exclusions—such as extreme sports or pandemics—are common. Legally, insurance providers are obligated to process claims fairly, and disputes can often be escalated to consumer protection agencies or arbitration panels.