If you travel regularly, whether for business or for pleasure, you need to be familiar with how life insurance companies may qualify you for life insurance. There are many factors that can determine how much life insurance you qualify for, and at what price you can be approved. The numbers are configured based on more than just your health, your age, and your lifestyle.
The process used by life insurance companies to review your application for coverage is the underwriting process. Foreign travel is defined as travel outside of the United States, for business or recreation, for no longer than six months. The main factors that are considered by life insurance company underwriters include:
- How frequently you travel
- Your occupation
- The country or countries you travel to
- The reason for travel
- The length of time that is spent in foreign countries
Destination Countries and Life Insurance Rates
The factor that has the most influential impact on your life insurance rates and coverage is the country to which you will travel. For the most part, life insurance companies place countries into one of three main categories: acceptable for travel, acceptable but with limited coverage amounts, and unacceptable for travel.
Countries are placed according to analysis of their travel services, industry data, and government. It’s important to note that a country’s status can change depending on current conditions there. You should also note that different countries within a continent can have different categories. For example, while Rwanda in Africa is typically “acceptable,” Sudan is “unacceptable for travel.”
Keep in mind, however, that many states in the United States do restrict life insurance companies from making adverse action when underwriting based only on people’s lawful travel activities. It’s also true that each life insurance companies will underwrite a bit differently than another, so it’s a good idea to obtain a variety of quotes for life insurance before choosing a policy.
Length of Time Spent Traveling
It’s also important to understand how the length of time traveling will affect underwriting. For the most part, if you are going to be traveling outside of the United States for longer than six months in a year, you’re going to be treated as a Non-U.S. Resident for the purpose of underwriting. You can maintain dual residences, you may declare a non-full time permanent U.S. residence, and you can visit the U.S., but maintain your primary residence outside the country. In any of these situations, your life insurance rates and coverage would be affected.
It’s important to note that most insurance companies are not concerned with where you are when you pass away, and will pay benefits accordingly. Of course, like most things, there may be some circumstances that changes that – such as travelling into a country that is involved in war. Each insurance company is different so you should contact your insurance company to be certain.
If you’re not yet insured, or are interested in exploring other policies, using InstantQuoteLifeInsurance.com can help make the process of obtaining quotes as simple as possible.You will receive accurate, no-pressure premium cost estimates. Get started today.