This is a simple insurance policy which works like any other policy - once purchased from the 'Insurance' section of the app it lasts for one year and you don't need to fulfil any of the Pay-per-Day requirements (e.g. connecting to the internet).
The exact cost of the insurance is quoted when you sign up to it - it will depend upon, among other things, whom you are taking with you and Insurance Premium Tax in your country of residence. Different countries have different rates so this means your quotes may be different from your friend's.
Upgrade to Revolut Premium or Revolut Metal now and get your travel insured for free!