May 2nd marked National Life Insurance Day – a day that commemorates the first time life insurance was sold in the United States in the late 1700’s. In its simplest form, life insurance provides family members the financial compensation needed to cover the cost of a loved one’s funeral and burial, and depending on the plan can also provide dependents with financial support in the form of a lump sum or as regular payments long after their loved one has passed away. The financial compensation typically depends on the level of coverage.
As with all insurance policies, life insurance does have some exclusions, including drug and alcohol abuse; and most do not cover serious illness or injury – just death. The good news is you can typically purchase additional insurance to cover permanent disability and critical illness.
An individual’s life insurance needs change with life and should be reassessed with the start of a new job, when you get married, buy a new home, become a parent, and when you retire. The price you pay for a life insurance policy depends on your lifestyle as well as your age and current health. Generally, the younger and healthier you are, the cheaper your life insurance policy will be.
Life Insurance for International Travelers
If you frequently travel abroad you should invest in life insurance if you have dependents, such as children or if you have a spouse or common law partner who relies on your income to pay the mortgage, utility bills, etc. Why? Imagine if you spend six months of the year overseas and die in a horrific accident. Even if you invested in extensive travel insurance, your plan will not cover your funeral and burial expenses. A good travel medical insurance plan will, however, cover repatriation costs associated with getting your body back home, but once home, your family will be left with the unexpected financial burden associated with a funeral service and burial.
Note: Many travel insurance plans include an AD&D benefit. AD&D is Accidental Death and Dismemberment, covering you if you should die or become disabled while traveling…
As people get older, they tend to travel more, but they also tend to shy away from life insurance because their children are out of the house and they don’t feel a need to leave them with any money. These same people hesitate to pay more into insurance simply because they are older and feel as though they have nothing to lose. But what about the family left behind? If you travel overseas a lot then you should not only have a travel medical insurance plan that will cover you should you need to be hospitalized or pass away and your body needs to be transported home, but you should also have a life insurance plan that will cover your funeral expenses upon return, so your adult children don’t have to worry about anything.
Regardless of your age you are not invincible – especially when traveling. Investing in travel insurance and having a life insurance policy covers the worst-case scenario. If you travel a lot, insurance gives your family members back home peace of mind knowing that should something happen to you while you are not on home soil they will have the financial means to get you home and celebrate your life in the best way possible.