When planning international travel, it is important to think beyond your excursions and activities. You may also want to consider whether or not your family has proper coverage in the event of the unexpected while abroad.
International life insurance can help ensure that your family has financial support if something happens to you while traveling abroad.
What This Guide Will Cover:
- What international life insurance is
- Who may need international life insurance
- How it works, and if it is necessary
- How travel insurance can help fill life insurance gaps
What Is International Life Insurance?
International life insurance is an insurance plan that gives coverage for individuals traveling overseas. Like domestic life insurance policies, international life insurance provides a lump sum amount in the event of the insured's death.
The difference between the two types of plans is location. Domestic insurance might not offer this coverage for deaths that occur abroad.
Another key difference is how each plan is issued. While domestic insurance is issued in your country of residence and regulated by your local insurance authority, international life insurance is issued in an international or offshore financial center, and regulated by the insurance authority of that region.
Who Needs International Life Insurance?
International travelers such as business travelers, missionaries and others traveling on special assignments may need international life insurance. If the worst happens, international life insurance provides financial protection for the insured travelers' families.
How Does International Life Insurance Coverage Work?
In the event of the insured's death, international life insurance coverage protects their family by providing them a source of financial income. Families receive a lump sum amount based on whatever type of coverage the policyholder chose. Deaths caused by pre-existing conditions may not be covered.
How International Life Insurance Works
- Application & Coverage: You apply for a policy (often with flexible terms from one month to ten years) and pay premiums. It covers death due to illness or injury worldwide.
- Portability & Flexibility: Unlike traditional domestic policies that may cancel or reduce coverage if you move, international policies are designed to follow you across borders without needing a new policy.
- Currency Options: Policies can often be denominated in major, stable currencies (USD, EUR, GBP), protecting beneficiaries from local currency volatility.
- Underwriting Factors: Premiums are decided based on age, health, occupation, lifestyle, and country of residence.
The policy term period and coverage options for International life insurance are flexible. Travelers can choose to purchase plans that range from one month to ten years, allowing international travelers the ability to insure almost any trip within an extended period.
Is International Life Insurance Necessary?
It's recommended to purchase an international life insurance policy if your company or domestic life insurance plan doesn't cover travel abroad. Although nothing can replace a loved one, international life insurance ensures that the insured traveler's family is financially secure and protected in the unfortunate case that they die abroad.
How Can Travel Insurance Help Fill Life Insurance Gaps?
If you are planning to travel abroad, travel medical insurance is coverage that one should definitely consider.
Not only does travel insurance offer coverage for unexpected medical events abroad, it can also provide protection for your family in the form of Accidental Death & Dismemberment insurance. This type of coverage can offer a lump sum payment up to the benefit maximum to your family in the event of your death or serious injury during your travels.
How Can VisitorsCoverage Help Me Get the Best Policy?
Still have questions? Reach out to our Customer Success Team with any questions or concerns or compare travel medical insurance options to secure coverage today.
- International life insurance provides a lump-sum payout if you or a loved one passes away abroad.
- It’s issued and regulated internationally. Unlike domestic policies, which are regulated in your home country, international life insurance is typically issued in an offshore financial center.
- It’s ideal for frequent or extended international travelers.
- Travel medical insurance can supplement coverage gaps.
Frequently Asked Questions About International Life Insurance
Will international life insurance cover me if I move countries?
Yes. One of the main advantages of international life insurance is portability across borders, unlike domestic policies. International life insurance is designed for people who live, work, or travel across multiple countries. So, you can move to another country and keep your policy active without needing to cancel or buy a new one.
Why might I need travel medical insurance?
Travel medical insurance is important because it provides financial protection against unexpected medical emergencies while traveling abroad. It covers costs such as hospitalization, surgery, doctor visits, and prescription medications, which can be extremely expensive in some countries.
What is Accidental Death and Dismemberment?
Accidental Death and Dismemberment (AD&D) is a type of insurance that provides financial protection in case of death or serious injury caused entirely by an accident. Unlike standard life insurance, which pays out for death from any cause (natural or accidental), AD&D only covers incidents like falls, car accidents, drowning, or other sudden, unexpected events.
Is it recommended for elderly travelers to get international travel insurance?
Yes, but with important considerations. International life insurance can provide financial protection for older travelers, but age significantly can affect eligibility, coverage limits, and premiums.
What is the difference between travel medical insurance and international life insurance?
While both types of insurance are designed for people traveling or living abroad, they serve very different purposes. Travel Medical Insurance is usually short-term trips (weeks or months), and will stop its coverage if you become a resident of another country. International Life Insurance is designed for long-term travel or expatriates, and its coverage continues even if you move countries.
Are pre-existing conditions covered by international life insurance?
Most international life insurance policies exclude ongoing treatment for pre-existing conditions, but some may cover the acute onset of a pre-existing condition under certain limits. Full disclosure of pre-existing conditions is crucial, as not reporting a condition can void the policy.
How much does international life insurance cost?
For a relatively small death benefit (e.g., US$100,000), average monthly premiums might be roughly:
- Age 25: $6/month
- Age 35: $8/month
- Age 45: $20/month
- Age 55: $67/month
- Age 65: $250/month
Is international life insurance worth it?
International life insurance is worth considering if you travel frequently, live or work abroad, or have financial dependents in different countries, because it provides a death benefit that stays valid across borders and can be paid in stable currencies. If your domestic life policy doesn’t cover deaths abroad or you want longterm portability, international life insurance offers protection your regular policy may not.
