Term Life

Planning for a trip abroad can be an exciting experience. Whether you are a seasoned traveler or a first timer, the experience can leave anyone overwhelmed. One question that often comes up concerns the need for travel life insurance. Is this insurance necessary and if you get it, what will it cover?

There are several kinds of trip insurance, including medical, trip protection and others, but when it comes to life insurance, the two most common types are called Accidental Death and Dismemberment (AD&D) Insurance and International Life Insurance (ILI).

AD&D insurance pays the insured party, the person purchasing the insurance, or a beneficiary, the person you name to receive the money should you die, a financial benefit in the event that you should die or lose a body part.

If you are flying, there is a specific type of AD&D insurance called common carrier accidental death and dismemberment insurance. This type of insurance covers you in the event you die or are dismembered as a result of a commercial airline accident.

If you wish to be covered for death and dismemberment for the entire trip and not just during the flight, look for 24-hour accidental death and dismemberment insurance. This type of insurance will pay a benefit regardless of how it occurs as long as it happens during a covered trip.

Generally these policies exclude events such as terrorism, however if you need such coverage, they are available but are usually quite expensive.

The other type of insurance commonly available is simply called international life insurance (ILI). ILI is generally sold as a one year renewable term life insurance policy that pays the beneficiary a lump sum when the insured dies. ILI insurance requires a detailed medical history be completed, but usually no blood test or physical exam is required. The amount of the policy will vary depending on which countries you are travelling to.

Other types of travel insurance to consider besides death and dismemberment and life include international medical insurance which will cover you in the event you become sick on your trip. The plans may include coverage which will evacuate you on a hospital plane and return you to your home country. It can provide you with great peace of mind knowing that you will be covered for any medical costs while you are out of the country and you can be flown home on a private plane staffed by medical professionals should you become seriously ill.