Life Insurance for Frequent Travelers Professionals

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13 minute read

Originally published: June 19, 2024

Get life insurance with multiple sclerosis in Canada

Life Insurance for Frequent Travelers

Talk to one of our experienced advisors today!

13 Minute read

Originally published:June 19, 2024

Get life insurance with multiple sclerosis in Canada

For frequent travelers, the process of getting life insurance can be overwhelming. Whether for business or leisure, traveling to different destinations around the world causes unique risks that standard life insurance policies may not cover. From higher premiums to policy exclusions and the need for flexible terms, frequent travelers face specific challenges in securing coverage. 

This blog explores the impact of frequent travel on life insurance policies and premiums, offers tips for finding the right coverage, and discusses the importance of working with insurance specialists who understand the unique needs of travelers.

Impact of Frequent Travel on Life Insurance Policies and Premiums

Numerous hazards that are introduced by frequent travel might impact life insurance plans and premium costs. Due to the longer time spent in cars, airplanes, and strange places, travelers are more likely to have accidents. Each journey comes with its own set of potential hazards, whether it’s navigating foreign roads or experiencing turbulence during flights.

For those who travel frequently, exposure to various health risks is also a major issue. Visiting different places exposes one to a range of ecosystems, altitudes, and climates, each with its own set of health hazards. Tropical locations may exhibit a greater frequency of illnesses such as malaria or dengue fever, whilst high-altitude regions may present hazards to individuals with respiratory problems.

Frequent travelers have a higher risk profile due to illnesses associated with travel. Infections from food and water are frequent while traveling to countries with inadequate sanitation infrastructure. Changing time zones can cause sleep problems, which can have an adverse effect on one’s general health and wellbeing. Together, these variables make people who travel frequently more vulnerable to health problems than people who settle down.

These increased risks directly affect life insurance policies and premium rates. Regular travelers are seen by insurers as higher-risk customers, which usually translates into higher premiums. The reasoning is simple: the possibility of a claim being filed increases with exposure to possible hazards. Insurance companies may also place limitations or exclusions on insurance intended for frequent travelers, such as limiting coverage in nations that are under travel advisory or in conflict.

In addition, underwriting requirements for frequent travelers are typically stricter. Travel history, including destinations visited, frequency and length of travels, and type of travel (leisure vs. business), will be closely examined by insurers. This thorough evaluation aids insurers in determining the degree of risk and modifying policy terms accordingly.

Case Study: Jessica from Oakville

You should consider no medical life insurance if you don’t mind a smaller death benefit, are looking for coverage as fast as possible, you do not qualify for traditional coverage, or you don’t want to do a medical exam.

Meet Jessica, a 34-year-old marketing executive from Oakville who frequently travels worldwide on business. Her employment requires her to visit clients and attend conferences in a variety of countries, including some high-risk areas. With her extended travel schedule, Jessica realized she needed a strong life insurance policy that would provide complete coverage no matter where she was in the world.

Jessica faced multiple challenges when searching for life insurance. Traditional insurance generally included restrictions and exclusions for high-risk travel destinations. Some insurers charged her higher premiums because of the additional risks posed by her frequent trips. Furthermore, many policies did not provide the flexibility she required to alter coverage based on her shifting travel habits.

Jessica decided to work with an insurer that specializes in offering life insurance to frequent travelers. She chose a portable life insurance policy that provided global coverage, providing her protection regardless of where her career led her. Jessica’s strategy included all of the countries that she visited, including those with higher health hazards and political instability. This was critical for her piece of mind, knowing she was safe wherever she went.

Jessica didn’t have to worry about losing coverage or obtaining new insurance when she moved or traveled internationally because her policy was portable. This guaranteed she was always financially secure. The policy had adjustable terms and conditions, which allowed Jessica to make changes based on her travel frequency and destinations. The flexibility was useful in handling her unpredictable travel schedule. Her policy also included comprehensive benefits for travel-related health conditions and accidents. This guaranteed Jessica and her beneficiaries were well-protected from any unexpected developments during her travels.

Jessica was able to safeguard herself and her family by opting for a specific portable life insurance policy. Her policy offered global protection, constant and comprehensive coverage, and the flexibility to accommodate her changing travel schedule. This emphasizes the need of choosing the correct life insurance policy for frequent travelers and working with an insurance consultant who understands their specific requirements to assure continuous and adequate protection.

Why Frequent Travelers Face Higher Premiums

Due to the higher risks involved in their lifestyle, frequent travelers tend to pay higher rates on their life insurance policy. When setting premium rates for those who travel frequently, insurers take into consideration multiple aspects.

The locations visited are a significant factor. Travelers face serious hazards while visiting countries with higher health concerns, such as those with a high prevalence of infectious diseases or those with unstable political systems. Insurance companies evaluate these risks and modify rates to reflect the increased chance of disease, accident, or even evacuation due to political instability.

For instance, frequent travel to tropical areas where diseases like dengue fever, malaria, or the Zika virus are known to be epidemics may result in higher premiums. In the same way, regular travel to regions experiencing political unrest or high crime rates may likewise raise insurance premiums. These destinations elevate the risk profile of the traveler, making them a higher liability for insurance providers.

Another important consideration is how frequently you travel. The number of trips made each year and their duration are factors that insurers take into account. Frequent travel exposes a person to higher risks because of the increased time spent in transit, the frequent changes in surroundings, and the overall strain on their health. Every journey carries a unique mix of dangers, and the likelihood of experiencing an unfavorable incident increases with frequency of travel.

For example, an executive in the business world who travels abroad frequently is probably going to pay more for insurance than someone who travels for pleasure perhaps once or twice a year. In order to offset the increased risk, insurers raise rates because to the continuous travel, frequent time zone changes, and exposure to a variety of health hazards.

Understanding Policy Restrictions and Exclusions

Given the heightened risks involved with their travel habits, frequent travelers’ life insurance policies often include specific limitations and exclusions. These steps are taken by insurers to control their exposure to risk and make sure that high-risk claims do not overwhelm them.

One common restriction is the exclusion of coverage in certain high-risk destinations. countries that have ongoing conflicts, unstable political systems, or chronic health issues are frequently included in this group. For example, a traveler’s life insurance coverage might not pay for any accidents that happen while they are in a country where there is a travel advice because of conflict or serious disease epidemics. This implies that the insurance company may reject the claim if the traveler is hurt or passes away while in a restricted area.

Another typical exclusion pertains to travel activities. Policies might exclude coverage for injuries or deaths resulting from participating in high-risk activities, such as extreme sports or adventure travel. For example, if a policyholder engages in activities like skydiving, mountain climbing, or scuba diving in exotic locations, these activities might not be covered, leading to potential claim denials if an accident occurs.

Health-related exclusions are also common for frequent travelers. Exposure to various diseases and health hazards while traveling can increase the likelihood of health issues. Insurers might exclude coverage for certain illnesses contracted abroad, especially in regions known for specific diseases like malaria, dengue fever, or Zika virus. This exclusion ensures that the insurer does not bear the financial burden of treatment for travel-related health conditions.

In addition, frequent travelers might face limitations on the duration of coverage while abroad. Some policies specify a maximum number of days or months that the policyholder can spend outside their home country within a policy year. Exceeding this limit could result in reduced coverage or even a complete voiding of the policy for the duration of the excess travel.

Specific situations where coverage might be limited include travel to countries with active travel advisories issued by government agencies. For example, if a traveler ignores a travel advisory warning and decides to visit a country with a high risk of terrorism or civil unrest, their life insurance policy may not provide coverage for any incidents that occur during their trip. Similarly, if a country experiences a sudden outbreak of a severe infectious disease, insurers might impose temporary exclusions on coverage for travelers to that region.

Information Insurers May Request

  1. Travel History: An extensive travel history that includes the countries visited, the frequency of travel, and the length of each stay will be requested by insurers. This aids in gaining an understanding of the degree to which the traveler is exposed to different dangers.
  2. Destinations: The precise locations that are visited are quite important in the underwriting process. Travelers’ risk profile may be greatly impacted by countries with high health risks, unstable political systems, or a history of natural disasters. These elements will be taken into account by insurers while reviewing the application.
  3. Duration of Stays: Another important piece of information is the amount of time spent at each place. Extended stays in high-risk regions may raise the possibility of health problems or other dangers, which may influence the insurer’s choice.
  4. Nature of Travel: Questions by insurers will also include the purpose of the trip—business, pleasure, or a mix of both. Different hazards can occur for business travelers than for leisure travelers, and knowing this difference helps better risk assessment.
  5. Health and Medical History: Considering the possibility of diseases associated to travel and the effects of frequent travel on general health, a thorough health and medical history is crucial. Insurance companies will review prior medical records, current medical issues, and any health-related travel-related accidents.

How This Information is Used to Assess Risk

  1. Risk Evaluation: The information gathered is used by insurers to assess the whole risk of covering the frequent traveler. Higher risk profiles from frequent travels and longer stays can impact policy terms and rates.
  2. Determining Premium Rates: The premium rates are immediately impacted by the risk assessment. Travelers having a history of health problems associated with travel or who often visit high-risk locations will probably pay more.
  3. Policy Terms and Coverage: Insurers use the underwriting process to determine the particular conditions and coverage limits of the policy. This comprises the whole coverage amount as well as any exclusions for particular locations or activities.
  4. Exclusions and Limitations: The risk assessment may lead insurers to apply particular policy restrictions and exclusions. This can be limiting the length of coverage while overseas or denying coverage for travel to specific countries.

Choosing the Right Type of Life Insurance Policy for Frequent Travelers

Comparing Different Types of Life Insurance Policies

When selecting a life insurance policy as a frequent traveler, it’s essential to understand the differences between term life, whole life, and universal life insurance. Each type has unique features and benefits that cater to different needs and circumstances.

Term Life Insurance

  • Overview: Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years. If the policyholder passes away during this term, the beneficiaries receive the death benefit.
  • Suitability for Frequent Travelers: Term life insurance is often the most affordable option and can be an excellent choice for those seeking temporary coverage during their peak traveling years. However, it lacks the cash value component and flexibility of other policies.
  • Benefits: Affordable premiums, straightforward coverage, and the ability to choose the term length based on travel plans and life stages.

Whole Life Insurance

  • Overview: Whole life insurance offers lifelong coverage with fixed premiums and a cash value component that grows over time. This type of policy provides a death benefit regardless of when the policyholder passes away.
  • Suitability for Frequent Travelers: Whole life insurance can be beneficial for those looking for permanent coverage and a way to accumulate savings. The cash value can be used as a financial resource during travel-related emergencies.
  • Benefits: Guaranteed death benefit, fixed premiums, and a cash value component that can be borrowed against or withdrawn if needed.

Universal Life Insurance

  • Overview: Universal life insurance is a flexible policy that combines lifelong coverage with an investment component. Policyholders can adjust their premiums and death benefits, allowing for customization based on changing needs.
  • Suitability for Frequent Travelers: The flexibility of universal life insurance makes it an attractive option for frequent travelers who may experience fluctuating incomes and changing financial goals. The investment component can also provide additional financial security.
  • Benefits: Adjustable premiums and death benefits, potential for cash value growth, and the ability to adapt the policy to suit evolving travel and financial circumstances.
You should consider no medical life insurance if you don’t mind a smaller death benefit, are looking for coverage as fast as possible, you do not qualify for traditional coverage, or you don’t want to do a medical exam.

Frequently asked questions (FAQs) about Life Insurance for Frequent Travelers

Yes, you can still get life insurance if you travel to high-risk countries, but it may come with higher premiums and specific exclusions. Insurers will assess the risk based on the destinations you visit and may impose certain conditions or limitations on your policy to account for the increased risk.

Travel frequency can significantly impact your life insurance application. Frequent travel increases the exposure to potential risks, leading insurers to consider you a higher-risk applicant. This can result in higher premiums and a more detailed underwriting process where your travel history and future plans are closely examined.

Yes, some insurers offer specialized life insurance policies tailored for frequent travelers. These policies are designed to provide comprehensive coverage regardless of travel destinations and frequency. They often include features such as worldwide coverage and flexibility to adjust the policy as your travel habits change.

It is important to disclose all relevant details about your travel plans to your insurer. This includes the countries you frequently visit, the duration of your stays, the purpose of your travel (business or leisure), and any planned future trips. Full disclosure ensures that you are adequately covered and avoids potential issues with claims due to non-disclosure or misrepresentation.

Find a solution for what you’re looking for 

Ensuring you have the right life insurance policy as a frequent traveler is crucial for maintaining financial security and peace of mind, no matter where your adventures take you. At Protect Your Wealth, we work with and compare policies and quotes from the best life insurance companies in Canada to ensure the best solution for you and your needs. We provide expert life insurance solutions, including no medical life insurance, critical illness insurance, term life insurance, and permanent life insurance to build the best package to give you the protection you need.

Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, Alberta, and Manitoba including areas such as Ottawa, ChestermereAbbotsford, and Brandon.

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