Is Your Life Insurance Valid if You Die While Traveling Abroad?
Pardeep Sharma - Apr 20, 2020
Traveling abroad or living abroad is a new normal for many people, but what happens if the traveler dies while off Canadian soil? Will the life insurance be valid and payout to beneficiaries?...
Traveling abroad or living abroad is a new normal for many people, but what happens if the traveler dies while off Canadian soil? Will the life insurance be valid and payout to beneficiaries? Not all life insurance companies view travel outside of Canada the same and may not pay out benefits.
Your questions regarding life insurance coverage are best answered first by contacting your life insurance policy carrier. Here’s where you should start:
- Contact your life insurance carrier and let them know you plan to travel or live outside of Canada for extended periods. They will let you know if your policy is valid if you should die while being an ex-pat.
- If the policy isn’t valid upon death in another country, ask if they provide life policies for travelers or if they can refer you to a reputable life insurance carrier.
- You may be able to purchase term travel life insurance through your airline carrier if flying international that covers a limited time, usually a few weeks if you’re planning an international vacation.
- Be aware that some travel insurance doesn’t include death and is more of a property replacement insurance.
If you’re not covered, consider purchasing international life insurance which provides insurance coverage while traveling. Like domestic term life insurance, international life insurance provides a lump sum if you die outside of Canada. International life insurance is commonly used by people that travel outside of Canada for work or leisure and is a term policy covering from a one-week period up to ten years.
Lastly, if you plan to live outside of Canada seasonally or for extended months in the same country, you may want to consider buying a term life insurance policy from an insurance carrier located in that country. The policy should pay benefits like a domestic life insurance policy and cover you while you are on that country’s soil.
If you have any questions regarding your life insurance policy or need a policy that covers you while outside of Canada, contact me for assistance. Protecting your assets while in Canada and abroad is an important part managing your wealth and assets you plan to leave your beneficiaries.