How to Ensure Your Term Insurance Covers International Travel

Well, international coverage while traveling is important for the same reason that a term insurance policy is: to ensure that in case of an accident, your family at least has a financial net to fall on. And in that sense, being covered on an international trip is more crucial than being covered on any other normal day. People take more risks and engage in high-risk activities on vacation, making them an epicenter of freak accidents.

However, this does not mean that international coverage is crucial only when traveling for vacation. It is equally important whether you are traveling for work or otherwise. It ensures financial protection for your family in case of an unforeseen event abroad. Many standard policies have geographical restrictions and even exclusions for high-risk countries. Without proper coverage, your family might face difficulties filing claims or getting a payout due to policy limitations.

How to Check If Your Policy Covers International Travel

If you have plans to travel abroad and you want to check if your policy covers international travel, here is what you can do:

Reviewing Your Insurance Policy

The first thing to do is to review your policy document to check if it includes international coverage. The terms and conditions will be outlined in the document provided by the insurer at the time of purchase. You can also find an e-copy in your registered email.

Asking the Right Questions to Your Insurer

If you have checked your policy and are not sure that your policy terms include international coverage, the next thing to do is contact your insurer. When you contact your insurer, make sure that you ask them about not only the global coverage but also its entire scope.

Questions To Your Insurer Before Making Travel Plans

While you are discussing the scope of your policy with your insurer, here are the questions that you must ask:

Countries That Your Policy Won't Cover

Insurance companies that provide international coverage often have a list of certain companies that are considered high-risk. The reason for the same can be many, like an ongoing epidemic in the area, a constant state of political or religious unrest, high crime rates, etc. Therefore, you must ensure that the country you plan to visit is not covered under such a list.

Are High-Risk Activities Like Scuba Diving Or Skydiving Allowed

Suppose your international trip is a vacation on which you plan to partake in some high-risk activities like scuba diving or skydiving. In that case, it is better to first confirm with your insurance company that your policy will cover such activities. Confirming this is crucial because if your policy does not cover such activities and an unfortunate accident happens, the insurance company will have the right to reject your family's claim.

How Long Can You Stay Abroad Without Losing Coverage

Another crucial thing that you must ask your insurance company is how long you can stay abroad without losing coverage. Certain companies have a limit on their international cover, and surpassing even a single day can result in a cover lapse. So, you should first confirm the terms of your international cover and plan your trip accordingly. If the cover term the insurer provides is too short, you can purchase additional cover or riders to compensate.

Does Your Term Insurance Cover Death Due to War or Terrorism

While most insurance companies explicitly exclude countries that are actively partaking in a war or are under threat of a terrorist attack, such things can also happen on a whim without any prior indication of the same. Therefore, it is crucial to ensure that your insurance covers unexpected war or terrorism so that your family is ripped off of their right to claim your policy.

Frequently Asked Questions

Do You Need to Inform Your Insurer About Your Travel Plans?

Yes, informing your insurer about your travel plans is advisable, especially if your policy includes international coverage. Some insurers require prior notification to ensure that claims are processed smoothly in case of an emergency abroad.

Can You Get Additional Coverage for International Travel?

Yes, many insurers offer riders or add-ons for extended international coverage. You can purchase these to cover high-risk activities, longer stays, or specific exclusions not included in your base policy.