This can happen due to many reasons. Sudden illness, physical injury, an accident, illness of travelling companion, death or illness in the family are certain incidents that force you to cancel your trip. This usually results in heavy financial losses. In the event where illness occurs just days before a trip, you may have payments made in full for various arrangements including tickets, flights, accommodation, etc. cancelling the trip means heavy loss and disappointment. Having a travel insurance policy will cover the losses.