How Does International Life Insurance Work?

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.