Are you a world traveler who is looking to purchase life
insurance? There are a few things to
note in regards to underwriting foreign travel.
In short, “underwriting” is the process in which the life insurance
company reviews your application to determine how much life insurance and at
what price you can be approved for.
These numbers are configured based on previously set guidelines that
determine how high of a risk you are to insure.
The destination country can significantly impact your life
insurance rates, and traveling to certain countries may even deem you
uninsurable. The life insurance
companies typically place countries into one of three categories:
Acceptable for Travel
Acceptable for Travel (but with limited coverage amounts if
traveling a certain amount – typically 3-6 months)
Unacceptable for Travel
The countries are categorized based on analysis of their
government, travel services, and industry data. A country’s status may change
depending on current conditions in that country. A continent can have several different
categorized countries within it. As an
example, if you travel to Africa, Rwanda is typically categorized as
“Acceptable”, while Congo is “Acceptable (with limitations)”, and Sudan is
“Unacceptable”.
It’s important to note that many states in the U.S. have
regulations that restrict the life insurance company’s ability to take adverse
underwriting action based solely on an individual’s lawful travel
activities. Because of these regulations
and the fact that each life insurance company underwrites a bit differently,
applying for life insurance through Quotacy is beneficial to you. We work with multiple life insurance
companies and have an underwriter on staff who knows the ins and outs of each
carrier’s underwriting guidelines.
For those who travel outside the U.S. over six months
annually, you will be treated as a Non-U.S. Resident for underwriting
purposes. This may be a person who
maintains dual residences; one who does not declare a full time, permanent U.S.
residence; or one who visits the United States but maintains a primary
residence outside of the country.
Overall economic conditions, endemic diseases, public health
and sanitation standards, quality and capacity of medical facilities and
different cultural attitudes toward personal health and safety are all factors
that vary from one country to another.
All are taken into account regarding the possible increased risk
involved with residing outside the United States.
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