Cancel For Any Reason (CFAR) travel insurance has become the most searched insurance benefit of 2026, surging nearly 30 percent since the Iran war began in early March, according to new data from Squaremouth. But demand isn’t translating to purchases — and advisors may be in the best position to close that gap.
Squaremouth data shows that 53 percent of travelers who searched for CFAR in the first quarter of 2026 didn’t end up buying it. Roughly one in three weren’t even eligible by the time they looked. The reason: CFAR must be purchased within 14 to 21 days of the initial trip deposit, depending on the plan and provider. Once a disruption becomes public knowledge — a war, an airline bankruptcy, a government shutdown — standard travel insurance policies typically exclude it. CFAR is the benefit designed to fill that hole, but it comes with a hard deadline that most travelers discover too late.
The benefit is available as an upgrade on roughly one-third of comprehensive travel insurance policies listed on Squaremouth, and cannot be purchased as a standalone policy. It reimburses up to 75 percent of prepaid, non-refundable trip costs for reasons not covered under standard policies — including military action, named storms, government shutdowns, or general fear of travel. Cancellations for covered reasons under a standard policy, such as illness, injury, or death of a travel companion, can still be reimbursed up to 100 percent.
The 2026 disruption environment — the ongoing Iran conflict, the collapse of Spirit Airlines, and broader geopolitical instability — has made the case for CFAR more tangible than it has been in years. The practical takeaway for advisors: the conversation about CFAR needs to happen at the time of deposit, not after a client calls worried about headlines.
Squaremouth’s Travel Insurance Trends Report breaks down the shift in traveler behavior.
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