Will My Life Insurance Cover Death in a Foreign Country?

Traveling abroad and worried if your life insurance covers you? Here is a complete guide explaining it in detail.
making travel plans

Having life insurance in place helps ease the burden of financial responsibility left behind in case of untimely demise. However, what happens if the insurer (you) passes away abroad? If the policyholder passes away while traveling abroad, the policy should still pay out. That, however, is not always the norm.

Your life insurance agency may consider your planned final resting place as an important factor in determining whether or not to issue a payout. After all, a company event in a neighboring country isn’t be handled the same way as conquering Mount Everest.

How Does It Work?

If the policyholder passes away while abroad, beneficiaries may get a payout; however, this is not guaranteed. To receive a settlement, certain life insurance companies houston need to see that you’ve had your insurance for at least two years. Life insurance companies typically require beneficiaries to submit a “foreign death claim” and provide evidence of the policyholder’s demise before releasing any funds.

Whenever anyone dies in the United States, a death certificate gets issued. However, not all countries report fatalities in the same manner, making it difficult to verify the policyholder’s demise. Life insurance companies need beneficiaries to provide evidence of death to avoid fraud.

If you’re a recipient and you’re having problems obtaining the necessary documentation—such as a death certificate or medical examiner’s report—you can get assistance from the U.S. consulate in the nation where the policyholder passed away. In addition, you may wish to retain the services of a lawyer who concentrates on cases involving deaths that occurred in other countries.

traveling abroad

Reasons Your Claim Might Get Denied If You Die Abroad

Policy Lapse

When determining whether to pay out on a death claim, life insurance agencies will check to see if the coverage was still in effect at the moment of death, regardless of where the insured person was located at the time of their passing.

When determining whether to pay out on a death claim, life insurance agencies will check to see if the coverage was still in effect at the moment of death, regardless of where the insured person was located at the time of their passing.

You Didn’t Tell The Whole Story

The policyholder’s typical routine is also factored into the risk assessment process. Applicants who omit information about potentially risky or extreme activities, such as paragliding or base jumping, may have their claims rejected. Life insurance companies can deny paying out on policies if they determine that the policyholder lied about important details.

Suicide

If the policyholder commits suicide within the first two years of purchasing the policy, the life insurance company can refuse to reimburse the claim under the suicide clause. This implies that no matter where the insured person passes away—in the United States or elsewhere—their beneficiaries will not receive the death benefit from their life insurance policy.

visiting countries

Things To Know When Applying For Life Insurance As An International Traveller

Most life insurance applications will inquire about whether or not you engage in any dangerous activities or are a frequent flyer, as well as other personal details about your health and lifestyle. Remember, don’t sugarcoat your frequency of overseas travel or your propensity for engaging in potentially dangerous activities when away from home.

While disclosing this detail may increase your premiums, it could keep the life insurance agency from denying a claim if the need arises. A life insurance company might consider giving your application a closer examination if you intend to travel frequently to nations with a history of political unrest, inadequate medical facilities, high death rates, or similar problems.

It’s important to note that extensive travel within the United States and Canada is not likely to be a problem at any stage of the application process. In addition, applying for life insurance within a few months of leaving for a foreign trip may prompt the insurer to give it more careful consideration.

The life insurance houston company can make you linger until your excursion is over before they accept your application. But in certain places, life insurance companies can’t consider things like where you’ve been or where you’re going into account at all during the application process.

If you like to travel the world, you should check that the life insurance plan you’re considering will pay you if you pass away while abroad. Be aware that you may need to buy high-risk coverage for your journey if you’re visiting a particularly unsafe country.

a traveler

In Search Of A Reliable Life Insurance Company? Franklin Life & Annuity Is Your Best Bet!

We are one of the leading providers of life insurance in Houston and have been for two decades now. We also offer final expense life insurance and family life insurance in Houston, Texas. Contact us to learn more about our policies.