‘Cancel for any reason’ coverage amounts vary depending on the individual plan rules and are sometimes subject to cancellation penalties. A cancellation penalty is the amount the travel supplier will not refund you – that is, your penalty – if you have to cancel. The cancellation penalty determines the percentage that travel insurance will reimburse less the amount refunded by your travel supplier.
Preferred Penalty Schedule
| If the cancellation penalty is up to: | the amount payable is: |
|---|---|
| 25% of trip cost | 100% of penalty amount |
| 26-50% of trip cost | 85% of penalty amount |
| 50% or more of trip cost | 75% of penalty amount |
Preferred Plus Penalty Schedule
| If the cancellation penalty is up to: | the amount payable is: |
|---|---|
| 25% of trip cost | 100% of penalty amount |
| 26-50% of trip cost | 95% of penalty amount |
| 50% or more of trip cost | 90% of penalty amount |