Do I really need to purchase Travel Insurance?
Most Travel Insurances protect you from the following:

• Trip Cancellation
• Trip Interruption
• Lost Luggage
• Trip and Baggage Delays
• Medical Expenses
• Emergency Medical Transportation
  

One would need to decide whether or not they can afford the money spent on the trip if something happens. If the vacation costs more than $1000, then it would be a good idea to insure it.

There are many different travel insurance policies.  Pick one that is a right fit for you and your budget. Below are the links to some good travel insurance companies.