Life Insurance For Travelers

• Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
• Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
• Do more with plans that offer pure protection, retirement planning and investment options

Most frequent travellers in the country opt for travel insurance in a bid to protect themselves from various eventualities. Travel insurance is typically provided by general insurers and standalone health insurers, and it focuses primarily on providing coverage against the health issues faced by policyholders abroad. However, travel insurance falls short when it comes to providing life coverage, funeral expenses, burial expenses, etc. If you wish to provide financial security for your dependents after your death, a life insurance policy is a must even when you are travelling abroad.

Conditions for worldwide coverage

While signing up for a term insurance plan, an insurer may perform various checks to determine the eligibility of the applicant. The paperwork required for a term insurance plan typically requires income proof to assess the earnings of an individual. The insurer may also check for other things like smoking habits, pre-existing diseases, etc. One of the checks usually performed before issuing a policy is the number of foreign trips taken by the applicant. If the applicant is a frequent traveller, the company will assess whether he/she has travelled to any high-risk zones in the world.

If the applicant has travelled to high-risk zones frequently, the insurer may reject the application even without asking about future travel plans. In certain cases, the company may ask for additional information about one’s job and future travel patterns. All these factors will be considered while calculating the premium amount for a specific plan. If you have not travelled to any foreign country before, most companies do not ask for future travel plans. Once a term insurance policy is issued, it provides worldwide coverage for all policyholders. In other words, all term plans provide compensation even if a policyholder dies in a foreign country during the policy term.

Life insurance vs. travel insurance

It is worth noting that life insurance and travel insurance differ a lot from each other in terms of coverage provided. One cannot be used as an alternative to the other. Here is a quick look at the difference between these two plans and how they can benefit frequent travellers.

Life insurance claims when a policyholder dies abroad

In case of the death of the insured person in a foreign country, the dependents can file a claim request to the company with all the necessary documents. Life covers, including term plans, do not have any provisions for the transport of mortal remains from a foreign country. In this situation, the family must bear this cost. The sum insured amount is payable in India and only in Indian rupees. Various documents such as claim form, death certificate, medical certificate (if necessary), certificate from authorities, etc., must be filed while making a claim request. The insurer will verify the documents and provide the settlement amount to the nominee.

Conclusion

Life insurance coverage provided for travellers is not very different from the regular coverage offered by insurers. However, frequent travellers must provide the necessary details while applying for a life insurance cover. Most companies in the market provide a travel questionnaire during the application process. A life insurance company may provide coverage or determine the premium amount based on the risk factors associated with the travel plans of an applicant. Once insured, the same benefits are available even for frequent travellers.