Travel and Life insurance can be confusing to get your head around but are essential in travel today – we share everything you need to know!
What is Travel Insurance and Life Insurance?
When you prepare for international travel, you probably spend a lot of time making sure that you have your passport and any other travel-related documents ready, planning what clothes you want to bring and making arrangements for pet care.
Before you head to the airport, there’s another thing you should know. You should double-check that your life insurance policy will cover you when you are overseas. Seems irrelevant? Allow us to explain why you need this more than you think you do. While this may seem like a morbid topic and you may prefer not to think about it, it is smart to know all you can about every insurance policy you have.
So, with this in mind, consider the following important facts about international travel and life insurance.
Alright, let’s get enlightened!
Travel Insurance - Need to know
It Does Not Necessarily Cover You All Over the World
As Bodega Hostels notes, life insurance policies will not always cover you if you travel to certain specific parts of the world. If you are going to an underdeveloped or a country that is considered dangerous, take a look at your policy to see if there is a provision that states the following – that a death benefit will not be paid if you travel to the location mentioned.
In general, countries that are war zones or are dealing with famine, floods, or other natural disasters may be deemed by your life insurance company as being “Unacceptable for travel.”
How Long You Plan on Staying Makes a Huge Difference
Because foreign countries can sometimes fall into a gray area when it comes to safety, how long you plan on being there can determine if your life insurance will cover you. Give your insurance agent a call before your trip and go over your itinerary and how long you will be away. You may find that a shorter trip will be no problem in terms of coverage, but a longer journey may have to be shortened to keep your policy in place.
If You Don’t Have a Policy Yet, Invest in One Immediately
Investing in a life insurance policy does not mean that you are assuming the worst will happen. Regardless of whether you are home or abroad, life insurance can give you and your family peace of mind because you will know that the policy can be used to replace your income, pay off debts and provide security for your family.
When it comes to policy types, there are two main options: term and permanent life insurance. Term life insurance is a great choice for people who would like to have coverage for a specific amount of time, usually up to 30 years, at a low price; it can be used to pay off debts like a mortgage or your kids’ student loans. Permanent life insurance is a solid option if you want coverage that can last a lifetime, help leave a “legacy” to a cause you strongly believe in, and/or replace a term policy that is expiring.
What About Travel Insurance?
Travel insurance is a type of insurance that will cover the losses and costs associated with the vacation. It can be useful if you are traveling internationally or within the U.S. According to Investopedia, while it can cover an accidental demise, travel insurance is more typically used to cover damage to your personal property, rented equipment like a car or 24/7 emergency service like passport replacement. While getting travel insurance might be a good idea for your vacation, it is not a replacement for life insurance.
We recommend you compare travel insurance with different companies before your trip, as companies offer various coverage depending on what you are looking for. However, when we travel, we use World Nomads because is offers yearly coverage for decent rates but includes a lot of different types of activities like scuba diving and snorkelling.
Do Your Due Diligence
Preparing for a trip abroad requires more than choosing the best clothes for the climate and other packing-related tasks.
It is also very important to inquire about your life insurance to ensure that it will cover you while you are away, or help you set up a policy before you leave the country. Being prepared is always a good thing, and knowing you have all of your important policies in place can help set your mind at ease. Remember, there’s no such thing as less research. The more you know about the journey you are about to embark upon, the better prepared you will be even while facing something that might unexpectedly turn up.
Inform Them About Your Existing Pre - Medical Conditions
You must let the insurer know of any pre-existing condition, such as diabetes or a heart condition before purchasing an insurance policy. In case your health condition becomes an issue on the trip, your claim will not be considered legitimate even if you have the necessary prescription. Once the insurance provider is made aware of the claim, he/she will either refuse your request or increase the amount on your premium.
Some of you might think you’re invincible, but the truth is that no one is. As much as we would like to believe that we are untouchable by danger, sometimes we do flirt with it. Knowingly or unknowingly. For such times, having insurance serves as an important pillar of strength in case there is an emergency.
Besides, the fear of the unknown must not stop us from living life to the fullest, right? If anything, it should only push us to be as careful as we can and cover our tracks! Hope this list cleared all your doubts about international travel. Let us know how your journey traveling abroad was and if taking travel insurance helped you in any way!
Travel Insurance FAQ
Travel insurance is always worth it, so that you are covered should an accident occur during your trip. Most travel insurance covers any loss of items and relation trip cancellation costs. It has always been worth having but it is especially worth investing in travel insurance now; this can cover you should a destination close its borders last minute or you are unable to travel last minute due to the current pandemic.
In general, travel insurance will cost between 4% to 10% of your total trip but this varies depending on why type of insurance and which company you are opting for. If you are planning a longer trip or going on 2 or more vacations in a year, you maybe better off getting a year long travel insurance with companies like World Nomads.
- Decide on what cover is needed
- Check the excess
- Check what insurance you already have
- Avoid insurance with travel agencies
- Compare prices
Book travel insurance as soon as you have booked your trip. This means you are covered before your trip, in case you or the company cancel the trip before you even leave for the holiday.
Depending on which cover you get, there are certain things that are often not covered. This can include losses from disease or psychological/nervous disorders. It also doesn’t tend to include losses due to nuclear radiation or radioactive contamination.
Some credit cards offer free travel insurance so you don’t have to worry about booking this severally. Cards that include travel insurance include the Chase Sapphire Reserve card, the Platinum Card from American Express and the Capital One venture Rewards Credit Card.