After their first holiday spent battling storms, re-booking missed flights, and canceling planned tours due to illness, many families learn why travel insurance comes in handy - particularly when traveling with kids. Hopefully, none of you will ever need it, but we urge you to consider purchasing travel insurance as soon as you commit to any journey involving non-refundable fees.

Since climate change landed on everyone's radar, weather has played an even larger part in travel insurance claims, though travel insurance sales have not increased commensurately. However, a poor economic forecast seems to have influence. According to AIG Travel Guard's VP Dan McGinnity, his company experienced a 19.7% increase in the number of vacationers purchasing travel insurance plans for family trips in the first three months of 2008 compared with the same period in 2007. "The trend we're seeing is that more families are opting for travel insurance to cover their hard-earned investment dollars."

Travelers who purchase travel insurance at the time they book their trip, prior to the issuance of hurricane or tropical storm warnings -- and prior to announcements that tour operators or airlines are declaring bankruptcy -- can protect their deposits and other nonrefundable expenses. Read on for FAQ and suggested insurance companies to explore. Contact the FTF office (212/665-6124) to request more information on specially-priced family plans.

Q. What is travel insurance?

A. Travel insurance protects your vacation investment because it ensures reimbursement for costs incurred by the cancellation or early termination of your planned itinerary, for most reasons. We recommend purchasing a comprehensive insurance plan including trip cancellation, trip interruption, vendor default, and the standard coverage for lost baggage, medical evacuation, etc. from an independent insurer rather than a self-insured cruise or tour operator.

FTF's recommended family travel insurance packages comprise "trip cancellation insurance" (someone gets sick, etc. and no one goes) and "trip interruption insurance" (extra expenses incurred by travel delays, missed connections, change of itinerary.) They also cover baggage loss or baggage delay, reimburse expenses due to illness or accident of insured travelers, and pay for medical evacuation in case of emergency.

In response to member interest, FTF has teamed up with major insurers, Travelex, CSA and AIG Travel Guard to provide travel insurance designed for families. At Travelex, for example, their "Family Friendly Coverage" means that multiple children under the age of 16 are covered at no additional cost when accompanied by a covered adult family member, as long as their names and trip costs are listed on the covered adult's enrollment form. Travelex doesn't have child-to-adult ratios (good for single parents), no time limit on coverage purchased in advance of travel, nor are there deductibles. These companies also provide a 24/7 Emergency Hotline for questions regarding such issues as lost tickets and passports, visa information, translation services and medical and legal referrals. At AIG Travel Guard, children age 17 and under are covered at no additional cost if they are traveling with, and related to, the primary insured adult.

Q. Is my investment covered if we cancel our trip because of terrorism concerns or acts of war?

A. After the millions lost to claims in the aftermath of the 9/11 attacks, most travel insurance companies added very fine print limiting their liability in case of terrorism or acts of war. Their constantly changing policies may exclude you from the coverage your family needs.

Travelex and CSA differ in their terrorism coverage by defining "terrorism" differently. For example, when an FTF staffer inquired, one company required that a U.S. State Department Travel Advisory be published about a "terrorist incident" prior to reimbursing you for cancelling a trip due to terrorism concerns. The other company completely waived their responsibility for reimbursing expenses if customers traveled to any region that had been noted in a U.S. State Department Travel Advisory. Both policies exclude acts of war in most cases, with the possibility that your inability to take a trip which includes a flight over a "No-Fly" war zone may not be covered.

On the other hand, many travel insurance companies are now making "Cancel Any Time for Any Reason" policies available at a premium. These most often cover parents who have to change plans because of unforeseen business commitments, but they can cover soccer championships or jitters, too. Always, before purchasing your travel package, call an insurance agent directly and ask specific "What if" questions.

Q. What if I have to cancel my airplane flight and I've purchased a non-refundable airline ticket?

A. AIG Travel Guard offers an Air Ticket Protection Plan which covers your ticket cost in case of trip cancellation or trip interruption. Flight accident and baggage delay is also covered. Without this type of coverage (which has certain exclusions), most restricted economy class tickets are not refundable and not transferable. However, the same passenger can typically apply the value of the ticket (less a change fee, typically about $100) for another flight itinerary within 12 months of purchase. And many other travel insurance providers will cover ticket change fees if it's part of a change in itinerary, which most cover under a basic policy.

Q. How can I protect my son or daughter who will be traveling during spring break or the summer with friends?

A. AIG Travel Guard also offers StudentGuard policies for US and international students for trips of up to 14 days and up to a cost of $2,000, offering trip cancellation or delay, baggage loss or delay, and medical protection, as well as emergency travel services.

You can enroll in Travelex by calling (toll free in the USA) 800/228-9792. The recommended FTF plan is found at Location #32-6048. Click on the image to visit the Travelex website for more information or to enroll in Travelex now.

You can enroll in CSA by calling (toll free in the USA) 800/348-9505. The recommended FTF plan is Affiliate Code #82615024 with their Freestyle Plan. Click on the image to visit the CSA website for more information or to enroll in CSA now.

You can enroll in AIG Travel Guard by calling (toll free in the USA) 866/877-3240. The FTF Affiliate Code is #62791. Click on the image to visit the Travel Guard website for more information or to enroll now.