Life Insurance and Foreign Travel

Where you go and where you’ve been
for the holiday season can have a major
impact on your insurance premiums.
Photo by Claus Rebler

With the holiday season fast approaching, many people are looking to get out of dodge for a little rest and relaxation. However, past and future travel plans can have a big impact on life insurance premiums.

The factors affecting the insurance company's decision will include the following:

• Which country the applicant is going to and their destination in that country?

• The purpose of their travel, is it for business or pleasure?

• The health of the applicant.

• The age of the applicant.

• The frequency and duration of each visit. Usually the insurance company will look at the total number of days per year in each country.

• Any travel warnings' advisory or public notice posted by the Canadian government for the destination.

• If the insured is a Canadian citizen, or a permanent resident.

Most insurance companies will usually ask an insured person who travels extensively to complete a travel questionnaire. Underwriting decisions can range from preferred or standard rates, to a rated policy. Some insurance companies will put an exclusion if the death occurs within a specific country. This will be made known to the insured at the time the policy is issued.

In this case, the insured would have to sign-off with some type of amendment form. In the worst case scenario, the insured will be declined. The way insurance companies view travel risks vary from company to company and can also vary depending on current world events. It's important to check with a broker who specializes in insuring high-risk clients.

Please feel free to contact us at 1-866-899-4849 for more details, or you can visit our Instant Online Quote Page.