During the shuttle ride to the airport after our last vacation, my wife and I met a gentleman who had recently graduated from college. While we talked, he mentioned how life in the real world is very different from college. He was traveling with his mother, and she kept telling him how he's going to have to learn a few tough life lessons.

We noticed he had bandages on his finger. His mom chimed in and talked about his unfortunate accident that happened the night before. Apparently, he cut his finger and had to visit the hospital for stitches. Luckily his mom was fluent in Spanish so the process of getting the medical attention he needed was not challenging.

The interesting part about our conversation occurred when he mentioned the $1,300 medical bill that had to be paid on the spot. He covered the cost with his credit card. He then stated, "When I get back to the states and go to my job, I'll contact my insurance company so I can get reimbursed." I think this statement is what his mother was alluding to when commenting on his life lessons. When you're on vacation and have a medical emergency, your health care insurance is usually only valid in the country in which you live. Without travel medical insurance, the cost of a medical emergency can sometimes end up costing more than the trip itself.

If this gentleman had purchased travel medical insurance, I'm almost 100% sure his cost would have been far less. Unfortunately, this life lesson cost $1,300. Whether you decide to purchase travel medical insurance or not is your choice. My goal is simply to heighten your level of awareness regarding situations that could potentially impact your money.