It may seem that travel plans should be something that you do not have to share with a life insurance agent, but that is far from the truth. An agent will want to know if you travel for numerous reasons. It can cause an increase in your premiums, and if you like to travel to countries deemed unsafe you could be denied a policy, or possibly even canceled if you already have one. The thing is, though, that the National Safety Council states that the chance of dying an unnatural death while traveling in normal foreign countries is so low that they cannot even formulate a percentage ranking for it.
- Travel Insurance-Most people that travel abroad have heard of traveler’s insurance. We will not go into the in-depth details of this type of policy, but it is important to know that if you die while on a trip the traveler’s insurance will cover the costs. The reason for this policy is because your normal life insurance will not cover anything that happens while you are away. The downside, though, is that even though the out-of-country policy will cover the death, your beneficiaries will not get anything without in-country insurance. For this reason, your insurance agent will analyze the number of trips that you take. Where you go on those trips. What you do on your trips and how likely you are to put yourself in harm’s way.
- Length-How long you plan to be gone is an answer that your agent will want to know. The longer that you are out of the country, the higher the odds are that something might happen to you. You can compare this idea with the idea of drinking. The more you drink, the more likely you are to hurt yourself. The same goes for traveling. The longer that you are in an area, the more you will want to get out and explore. Whether you are in a huge city, in the jungle, or out in a desert hidden away from people. Dangers lurk everywhere and they do not judge you by who you are or where you come from.
- Length-It may seem like déjà vu, but the repetition was on purpose. If you are out of the country more than you are home, an insurer will wonder why. It is common knowledge that people will have a house or apartment in a country so that they can claim citizenship, but they live in an entirely different one. It allows them to get the benefits of the country they claim to be home in while enjoying life in their dream location. This may be ideal for you, but an insurance agent will not find this as an acceptable risk for their company.
- Destination-Forbes magazine has listed locations in Africa, the Middle East, and parts of Mexico as being unsafe for traveling. If you are headed to one of these locations your agent will want to know about it. Whether you travel for fun or work, it makes no difference. Each specific insurance carrier will have its list of dangerous destinations. Agents can also insure on a case-by-case basis. To discover which locations are more likely to affect your policy, compare life insurance companies and analyze their policies or ask them outright.
- Hospitals-Good medical care is not always something that is easy to find when traveling. If you live in a country that has at least one hospital in every town you have become accustomed to having help at all hours of the day and night. This is simply not the case in some areas of the world. You could break a leg climbing through the jungle and die from infection before you got anywhere close to a hospital. A snake could bite you and the venom run through your blood within a matter of minutes. If you prefer the beaches and oceans, a shark could chew on you thinking that you are a seal. With no ambulance or emergency room doctors, you would bleed out before getting to help.
- Disease-Many locations that you may want to travel to seem great on paper, but not so good in real life. Many areas of the world fight against starvation and disease daily. If you travel to one of these destinations, you have a higher chance of catching one. Local doctors with little access to modern pharmaceuticals will not be able to help you heal. The disease is not something that you would normally have to worry about but traveling to other countries could bring this problem to light.
- Political Instability-Many areas throughout the world have serious political unrest. This doesn’t necessarily affect you directly but there is always an off chance that you can get in the middle of some issues. Political upheaval means that there are people that are not following laws and regulations. They feel that the current bodies of power are not up to their standards, so they do as they please. Sometimes they are in big groups, other times they may be alone. If you feel that you must travel to these areas of the world, don’t be too surprised if your insurance agent denies you a policy. It is a high risk that they are simply not willing to take.
- Mortality Rate-Another statistic that your agent will look at is the mortality rate of your destination. If the average age of death is low, it shows that the area is not a very safe place to be. The reason for the early death rates is not as important as the average number. If murder is the main cause of death, it would be considered when a policy is discussed. Normally, though, it simply doesn’t matter why.
To many of you, it might seem like a life insurance agent has no business asking about your personal travel plans. As you can see that is not the case. They must consider every risk associated with you to process an accurate policy. You can always choose to not answer their questions, but they can then choose not to insure you.