When purchasing a television, computer, or appliance we typically skip on the insurance package offered. It is usually only for a year or so and can adds hundreds onto the bill. My husband and I have yet to be dinged in our 9 years of this practice. *knock on wood*
BUT, when it comes to traveling we ALWAYS splurge for the protection. Have we had to use it? Well, no. It is a risk we're just not comfortable taking. We also prefer the convenience of transferable airline tickets.
It is important to check with each airlines policy about canceling or changing airline tickets. Certain flights may be eligible for refunds depending on the ticket holders situation, such as, an emergency medical issue. Other tickets may only be transferable to an equal or lesser value ticket. There are some airlines that are more forgiving than others.
My personal favorite is Southwest. They have a very unique business model that is highly revered. Not only for their loyalty to their customers but their employees as well. Perks in my eyes are their no hassle boarding, inexpensive air fare, and free bags (first two bags per passenger).
According to Southwest's costumer service commitment, an 'unrestricted fare' is eligible for a full refund for future and missed flights. While the 'restricted fare' tickets can be transferred to another date without penalty as long as it is used "during the eligibility period printed on the ticket or Ticketless Travel authorization" (http://www.southwest.com/assets/pdfs/corporate-commitments/customer-service-commitment.pdf, page 6).
This is a great idea for those who will be traveling with family that are chronically ill. The medical emergency clause usually only applies to the person who holds that ticket. If it is a parent or extended family member you may have a hard time refunding your ticket.
It is hard to plan when a medical emergency might occur but with this alternative you can plan that much need vacation with a little more peace of mind.
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