Does Life Insurance Pay for Overseas Deaths?
Traveling abroad? Your Life insurance may still cover you.
Once a person purchases a life insurance policy, one naturally presumes that coverage is in effect and return to their daily lives as such. Just like any other legal agreement, however, insurance policies contain a lot of fine print that consumers often do not read.
The Boonswang Law Firm highly recommends that you review your life insurance policy, especially before traveling out of the country. This is because life insurance policies contain many hidden exemptions, or reasons the insurance company will not pay a beneficiary upon an insured’s death.
Many exemptions come into effect while an insured person is traveling. Does your life insurance cover you if you go deep sea diving in Australia? What happens if you die while vacationing? Are you covered if you die while on business overseas? What happens to your insurance coverage if you move out of the United States? The Boonswang Law Firm is here to help you answer these questions.
Does Life Insurance Still Cover Me Outside the US?It depends on both your own policy and the country you are visiting. A business trip to Tokyo will be treated very differently than backpacking the Andes Mountains. Insurance companies often make the following considerations when deciding whether to pay on the life insurance policy.
Is Your Destination Dangerous or Underdeveloped?The first consideration is what country you are traveling to. Life insurance companies often place countries into one of three categories: acceptable for travel; acceptable for travel (but with limited coverage amounts if traveling a certain amount – usually three to six months); and unacceptable for travel. The countries are categorized based on an analysis of their travel services, government, and general industry data. Even countries that share the same continent may be categorized differently. For example, Sudan may be deemed unacceptable while Rwanda may be deemed acceptable.
How Long Are You Staying Abroad?The next consideration is the length of time you plan on traveling. Usually, if you travel outside the United States for a period longer than six months, you will be treated as a Non-U.S. Resident, which could stall your life insurance coverage until you return. If you plan to move out of the United States and/or maintain dual residences, your life insurance company will do a deep dive into the country to which you plan to relocate. To assess the risk involved with living in another country, life insurance companies will look into the country’s economic conditions, public health and sanitation standards, quality of medical facilities, and more.
What Will You Be Doing Abroad?Lastly, life insurance companies will consider what activities you plan to engage in during your time outside of the United States. If you plan to travel for a week-long vacation to Venice, Italy to sightsee, that involves less risk than if you were to white water raft and sky-dive all over India for a month.
Foreign Death Claims Can Be ChallengingAnother question that the Boonswang Law Firm can help you answer is whether you are covered should you pass away while overseas. A foreign death claim occurs when an insured dies outside of the U.S.
Normally, if the policy has been in place for at least two (2) years, the insured should be covered if he passes away abroad. Before a life insurance claim is paid to the beneficiary of the policy, however, the insurance company always requires proof of the person’s death.
If the person died in the United States, a death certificate will suffice. Providing proof of death becomes much more difficult, however, when the person dies overseas. Customary practices, resources, and technology all vary greatly from country to country, which can preclude a country from recording a death in the same way that we do in the United States.
Find a Life Insurance Lawyer for Foreign Death ClaimsWhen insurance companies are given proofs-of-death or death certificates from countries that are unusual compared to the U.S.’s death recording practices, insurance companies often allege that they are being victimized by people faking their deaths, and will most often launch their own investigations. It is always a good idea to check your policy before you plan any travel and check all the clauses, particularly the exclusions, because they vary from policy to policy.
Provided by HG.org
Disclaimer: Every effort has been made to ensure the accuracy of this publication at the time it was written. It is not intended to provide legal advice or suggest a guaranteed outcome as individual situations will differ and the law may have changed since publication. Readers considering legal action should consult with an experienced lawyer to understand current laws and.how they may affect a case.