I can remember when life insurance was sold from vending machines in airports. “Flight” insurance I think they called it. Really put my mind at ease.
While that has come and gone, some travel still carries with it a risk worth considering. With our global economy it is very common today for business people to have to go places they might prefer not to. I mean, given a choice, I might choose not to sell life insurance in places where car bombs are a regular occurrence and kidnapping is pretty routine. But there are all sorts of business opportunities in developing countries and in spite of the risk, there are plenty of people working to earn that business.
And then there is the new gold rush. People used to drop everything and run off to the wilderness to find gold. These days people are running off to do just about any kind of work in war zones, following the call of big bucks and tax breaks.
It’s important to note that anyone who had life insurance in force prior to deciding to venture in either of these directions is likely fully covered by that insurance even though they are knowingly heading into harms way. The key is whether their was intent or anticipation of doing this type of travel at the time the insurance was taken out.
But for those whose businesses have expanded into less than stable markets and need extra coverage, there is high limit accidental death insurance that covers acts of war and terrorism and there is also kidnap, ransom and extortion insurance.
For those who are taking advantage of the opportunities for high paying work in Iraq and other countries, the high limit AD&D is a good, reasonably priced life insurance whether it is primary or supplemental.
Bottom line. Sometimes opportunities come up and the prudent thing to do for your family is to make sure that the anticipated reward is also covered for the potential risk.
For the most part life insurers are not allowed to underwrite based on foreign travel anymore. Most states allow you make exceptions for Iraq and Afghanistan, but that’s about it. It’s almost a non-issue anymore.
Michael,
Hardly a non issue. Only seven states have jumped on board the foreign travel whitewash train so far, the same seven that jumped on it a year ago. Even in those states if a policy is large enough to warrant a personal history interview and foreign travel to, say, some of the bleaker parts of Africa, comes to light, those companies still have the option of underwriting the foreign travel if they believe they can make a case for the mortality risk.
Now, having set you straight once again, the cruxt of the post was how to get coverage when you know you are going to be going to dangerous places. Traditional life insurance companies, even Garden State, will underwrite the risk and justify their decision rather than blindly accept the risk. That’s when the non traditional alternatives step in.