Life Insurance: Am I Still Covered if I Leave the Country?

Posted on 05. Apr, 2013 by in Your Wealthy Life

International life insurance

Under the stipulations of most life insurance policies originating in the United States, you are not covered if you leave the country! This is an unfortunate fact that many policy holders don’t discover themselves, but instead is found out by the holder’s family when they try to make a claim after a tragedy happens abroad.

When travelling abroad, a supplemental form of life insurance dubbed either “global” or “international” is needed to ensure that coverage is extended while you’re out of the country. Fortunately, these are highly customizable policies, albeit more complicated.

What does an International Life Insurance Policy Offer?

Quite simply, it offers short-term coverage for the periods of time that you’re out of your home country. Furthermore, it’s a policy that is very specifically individualized to your travel itinerary. This is great for ensuring that you’re only paying for what you need, but can prove dangerous if your travel plans alter from what you outlined in your policy.

For instance, if you were to make an unexpected trip while abroad to a hostile region and meet a tragic end, your family’s claim for your insurance would be denied, as this trip wasn’t on the insured itinerary.

Why You Might Want to Consult an Insurance Expert

As mentioned, these policies can be complicated, complex, highly customized to meet your exact travel needs, and every insurance company has a slew of varying clauses that are attached to each one. With all of those variables to juggle when shopping around, you’ll need help.

A Few Things to Consider and Ask

Once you’ve found a qualified insurance specialist to assist you with acquiring an international life insurance policy, there are a few things that you’ll want to make sure are addressed and handled.

  • Before purchasing an international policy, have you checked with your current life insurance provider to see if you’re already covered internationally? It’s rare, but it’s worth asking.
  • Have you checked with your current life insurance provider to see if they offer international policies at a discount if you’re currently holding another policy with them? You might like to check your policy.
  • Have you checked with your employer to determine whether, or not, you’re already covered internationally though work benefits?
  • If so, have you double-checked that this employer-provided international coverage provides enough? In some cases, this kind of coverage will be weighed down with limitations that might result in gaps that cost you more in the end.

What to Expect From an International Policy

While the fine print of different international life insurance policies varies, usually the basic terms and requirements will include the following:

  • Age Limitation: 18 to 65 Years
  • Policy Terms Available: 1 to 10 Years
  • Policy Requirement: Must be working and/or living abroad to obtain policy
  • $1,000,000 USD Coverage Limit

Most people should meet these requirements and the coverage limit would be sufficient in most cases. The cost of international life insurance is actually pretty reasonable when you compare it to what it might cost if you end up in a situation that requires it.

Do you consider insurance when you travel?

Image by Irish Typepad

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