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If Your Are Outside the Country are your Still Covered by Life Insurance?

Travelling abroad is exciting and interesting but there’s always a certain amount of risk involved.  You’re no more certain of what’s going to happen than you are at home, so what happens if you die abroad?  Organizations such as Foreign Affairs, Trade and Development Canada can help with providing advice about dealing with emergencies while you’re out of the country.

Losing someone is always an emotional time and the loss occurring while that person is travelling can magnify the effect.  You will probably want to make things as easy as possible for your family by checking what happens with your life insurance should you be out of the country when you die.

Will your policy pay out if you die outside of the country?

Most of the time the answer will be yes, as long as the policy has been in place for at least two months.  That being said, it’s always a good idea to check a policy before you purchase it just to clarify the position in case anything happens in the future.  You need to be certain about this as basic travel insurance doesn’t usually cover death while abroad so you have to be careful.  If you know that you’re not covered by your life insurance you will need to request additional cover on your travel insurance.

One occasion where you may have problems with getting a payment on your life insurance is if you travel to a country which is listed by Government as being unsafe due to a current advisory.  You may not necessarily agree with this but it’s understandable given that the insurance providers have to limit their risks and these can be considerable if you’re travelling to an area that is known to be unsafe.  If you choose to travel to a country where you know you won’t be covered then you do so at your own risk unless you approach a provider who specializes in high risk insurance.

What does this involve?

Many providers offer policies for high risk travel which means you’ll be covered, but you’ll have to pay increased premiums.  If you apply for this type of cover you’ll need to disclose all of the necessary information to the insurance provider or any claim you make may be invalid.

What happens if you’re a frequent traveler?

If you travel on a regular basis then the risk of something happening when you’re out of the country is greatly increased.  This will cause insurance providers to raise premiums to mitigate against the increase in the risk.  You may think the premiums are high but consider the alternative.  If you don’t have cover, and you die, your dependents may have to pay out to transport your body home.

You may think you don’t need to worry, few of us think that anything bad is going to happen while we’re travelling, but you can never be certain.  Do you really want to take the chance of your family having to cope with enormous costs just because you didn’t make sure you were covered by life insurance?

 

3 thoughts on “If Your Are Outside the Country are your Still Covered by Life Insurance?

  1. Very interesting! I never really thought about this. I still need to get life insurance as well and I will have to look into this more. I have also been wondering how health insurance would work as well in another country.

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