Traveling abroad or living abroad is a new normal for many people, but what happens if the traveler dies while off U.S. soil? Will the life insurance be valid and payout to beneficiaries? Not all life insurance companies view travel outside of the U.S. the same and may not pay out benefits.
Contact your life insurance policy carrier with questions regarding life insurance coverage. Here’s where you should start:
- Contact your life insurance carrier. Let them know you plan to travel out of the U.S or live outside of the U.S. for extended periods. They will let you know if your policy is valid if you should die while being an ex-pat.
- If the policy isn’t valid upon death, ask if they provide life policies for travelers or if they can refer you to a reputable life insurance carrier.
- You may be able to purchase term travel life insurance through your airline carrier if flying international that covers a limited time, usually a few weeks if you’re planning an international vacation.
- Be aware that some travel insurance doesn’t include death and is more of a property replacement insurance.
International Life Insurance
If you’re not covered, consider purchasing international life insurance which provides insurance coverage while traveling. Like domestic term life insurance, international life insurance provides a lump sum if you die outside of the U.S. People that travel outside of the United States commonly use international life insurance. Whether it be for work or leisure and is a term policy from covering one week to ten years. Lastly, if you plan to live outside of the U.S. seasonally. Or for extended months in the same country. You may want to consider buying a term life plan from an insurance carrier in that country. The policy should pay benefits like a domestic life insurance policy but cover you while you are on that country’s soil.
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Ronald A. Bartlett & Associates, LTD. are Registered Investment Advisors and has been working with the Communication Workers of America since 2007. At Ronald A. Bartlett & Associates, we know that it is your retirement, and you should have control over it. We offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!