How Does Life Insurance Work for World Travelers?

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Whether you study abroad, travel for work, or use your sky miles for pleasure, it’s a good idea to find out how your life insurance policy will work if you pass away while you’re away from home. The truth is it depends on the policy you have. Some life insurance policies will cover you no matter where in the world you are, while others may only cover you if you’re within a certain distance from your home country.

It’s important to read the fine print of your policy to see exactly what is covered and how much coverage you have. Here’s what you need to know about how life insurance works for people who travel internationally.

Many Life Insurance Policies Have a Territorial Limit

A “territorial limit” means that your life insurance coverage only applies if you die within a certain geographic area. So, if you’re planning to travel outside your life insurance policy’s territorial limit, you’ll need to purchase additional coverage so your beneficiaries can receive the death benefit.

Life Insurance Policies May Not Cover Accidents

Another thing to remember is that some life insurance policies may not cover accidental deaths. If you plan to do any activities that are considered high-risk (like bungee jumping or skydiving), you may want to think twice and ensure that your policy covers those activities.

You can purchase a separate accidental death rider if your current policy doesn’t cover accidental death. An accidental death rider is an add-on to your life insurance policy that provides additional coverage in the event of your accidental death.

Your Life Insurance Coverage May Be Limited When Traveling to High-Risk Countries

If you’re going to be traveling to a country that is considered high-risk (like a war zone), you’ll need to check with your insurer to see if they will still provide coverage. Some insurers may offer riders that you can purchase to extend your coverage to high-risk countries.

Some high-risk countries include:

• Russia
• Ukraine
• Iraq
• Iran
• Libya
• North Korea
• Cuba
• Haiti

Some Life Insurance Policies May Have Cancellation Conditions

Some life insurance policies may have conditions that will allow the policy to be canceled if you travel to certain places. So, if you’re planning to travel to a country that is on the list of countries that could void your policy, you’ll need to purchase additional coverage.

How to Make Sure Your Family is Protected When You Travel

The best way to make sure that your family is financially protected if you pass away while traveling is to have a life insurance policy in place before you go. On top of that, you’ll want to ensure that your policy is sufficient for your specific travel plans depending on where you’re going and how long you’ll be there. That way, you’ll know they will be taken care of no matter what happens to you.

The Bottom Line

No matter where your travels take you, a life insurance policy will follow you and provide coverage if you pass away. If you don’t already have a life insurance policy, now is the time to get one, especially if you travel the world frequently. Remember that every policy is different, so read the fine print to ensure you’re covered before packing your bags. Happy travels!