The State Department issued a rare warning for all Americans abroad. Here's how travel insurance can help

Amid months of conflict in the Middle East, the U.S. Department of State issued a warning on July 18 to Americans who are living and traveling worldwide.

The memo states that Americans should "exercise increased caution" and warns that "flight cancellations and periodic airspace closures may cause travel disruptions." It suggests that Americans follow security alerts available through Step.state.gov and those issued by nearby U.S. embassies or consulates.

Whether you've recently booked a trip or live abroad, you may want to consider investing in a strong travel insurance policy. While flight delays and cancellations may not be covered under a policy you buy from here on out — as travel insurers could consider this a "known event" and may not pay out — coverage still could be beneficial for incidents like injuries that could happen abroad.

Below, CNBC Select breaks down how travel insurance could help Americans abroad right now.

If you want the flexibility to change your mind at the last minute, adding a cancel for any reason benefit to your travel insurance plan, sometimes called CFAR travel insurance, could be the right tool.

Most standard travel insurance policies only reimburse you for 100% of your nonrefundable expenses when canceling for a covered reason, like a death in your family or suddenly falling ill. With CFAR coverage, however, you don't need to give any reason why you'd like to change your plans, though you'll only get between 50% and 75% of your nonrefundable expenses back, depending on your insurer and the plan you choose.

With most CFAR policies, you'll need to buy soon after you book your trip, as most plans have a two- to three-week window for eligibility. While it does cost more than standard coverage — these plans tend to add 40% to 50% to your insurance costs — it could be worth it if you want the opportunity to change your mind on traveling.

Different companies — and sometimes even individual plans — can have different reimbursement limits, so you'll want to compare and look for the highest one that fits your needs. For CFAR coverage specifically, we like Allianz's Cancel Anytime upgrade, which has one of the most generous reimbursement limits we've seen at up to 80% of nonrefundable expenses.

One of the biggest benefits of travel insurance is medical coverage, which can help you if you're ill or injured abroad. In addition to common ailments, travel insurance medical coverage typically includes injuries sustained from being an innocent bystander in civil unrest.

Having this could help ensure that you'd be able to get medical attention abroad, without breaking the bank. While this coverage does pay for doctor's fees and treatment costs, it can also pay for prescription medications related to your injury, as well as help with finding care, getting translation services if needed and arranging transportation if you're not in an area with adequate medical facilities.

If you're looking for travel insurance with strong medical coverage, we like Travelex's plans, which balance cost and high medical coverage limits — the Ultimate plan can cover up to $250,000 of medical expenses per insured traveler.

If you spend part of the time living overseas or live abroad full time, getting coverage for medical incidents and other scenarios should be top of mind.

Travel insurance for those living abroad works slightly differently than the plan a U.S. resident would buy to visit another country short-term, as these policies tend to have more benefits, like dental coverage and even preventative care benefits.

Additionally, the benefits go beyond medical care: These plans can also cover crisis situations, like emergency political evacuation from your location if ordered by your home country.

For those living abroad, we like IMG's Global Medical Insurance, which can provide coverage for up to 12 months with renewability and up to $8 million in lifetime coverage, as well as crisis benefits like political evacuation and emergency reunion coverage, which can help you get home to see a loved one if they're hospitalized while you're abroad.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every travel insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of travel insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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