Heading on a trip or planning to move outside of the U.S.? International travel is often a good reminder to make sure your financial foundation is solid.
Many people look into life insurance before short- or long-term travel for extra assurance that their loved ones are protected. If you’re a frequent flier, traveling or living abroad can also impact your life insurance eligibility and premiums, depending on the insurance company.
When it comes to life insurance for traveling abroad, you probably have some questions. Check out these FAQs on how globetrotting can affect your life insurance coverage.
Why do insurance companies ask about your international travel?
When you apply for life insurance, your insurer will look at various factors that could impact your life expectancy. That typically includes your medical history, any family history of medical issues, your age, your job, and any adventurous activities you engage in regularly.
Travel is part of this consideration process. International travel can expose you to higher risks that could affect your lifespan, such as disease, lack of hospital care, political instability, or the overall safety of the country. Your insurance company also may consider the mortality rate of the country – if there’s a higher mortality rate, that could indicate the location is less safe or offers lower levels of medical care. The underwriters will take a close look at all these factors before determining your rates and eligibility for life insurance.
While the countries considered high-risk vary by insurer, many companies use guidelines similar to those set by agencies like the U.S. Department of State to assess overall risk. Travel to these areas may impact life insurance rates because there is a higher risk of early death.
It’s also important to know that, during a pandemic, international travel remains a high-risk activity. That’s especially true if the rate of infection is uncontrolled where you’re travelling. If you’re deciding whether a trip cancellation is the right move, remember that international travel may lead to a delay or denial of life insurance coverage.
Your insurance agent may ask about any planned upcoming travel in addition to recent trips. Be honest with them. Remember, too, that domestic travel isn’t considered during the application process, and that generally includes travel to Canada.
Can you buy life insurance if you’re living overseas?
For traveling, life insurance policy access may still be available. It just may be harder to obtain or may cost a bit more. Each situation is different. Most commonly, if you’re traveling for an extended period of time, insurers will look at your policy differently to determine the level of enhanced risk this presents. Again, where you are going, why, and for how long may play a role in whether the company extends coverage to you.
So how long is that period in the eyes of a life insurance company? Typically, insurers consider applicants traveling for over three months as non-U.S. residents or foreign nationals. That means there may be different underwriting rules that apply (which means potential differences in rates, eligibility, and coverage amounts). Some policies may also have occupational limitations or enhanced documentation requirements.
As you look for insurance for living abroad, always provide accurate information about your living arrangements to avoid any issues with obtaining your coverage later. Let your agent know why and for how long you plan to continue to do so.
Can your life insurance claim be denied if you die overseas?
Not usually, as long as you’re honest during the application process. Typically, insurers won’t deny life insurance claims just because you pass away overseas. However, read your life insurance policy’s fine print to ensure you know exactly what the rules are. Some insurers require policies to be in place for at least two years to avoid additional review after a death.
Your beneficiaries will also need to have a death certificate to file a life insurance claim. That may complicate things a bit, depending on where you die. In dangerous or undeveloped countries, the process may be complex.
Can I get life insurance before an upcoming trip?
If you’re traveling soon and want to make sure your family has protection just in case something happens to you, you probably don’t have a lot of time for a long underwriting process.
Fidelity Life can help. We offer a variety of term life insurance and permanent life insurance plans and you can buy online or by phone, with coverage starting the same day in many cases. With our RAPIDecision® Life term life plans, if you need a medical exam, you have up to six months after approval to complete it – giving you plenty of time to head off on your next adventure in the meantime.
Still have questions?
Fidelity Life offers a range of life insurance plans to keep you and your family covered through every age and stage of life. Get your quote online today or call one of our agents at (855) 291-6365.
At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.
