If I die while outside of the US, will my life insurance company still pay?
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Asked July 14, 2015
Life insurance policies are not, typically, concerned with where you are at when you pass away. There are some restrictions, such as traveling into a country that is involved in war, but most policies will cover death in a foreign land. To be certain, contact your insurance company and discuss where you are going to.
If you are in the military, you are also provided with life insurance as a matter of course. However, if you are killed as a result of war, whether you are in the military or not, very few policies will pay out under an exclusion concerning acts of war.
Insurance companies may add many different types of exclusions that limit where the policy will cover your death. For example, death in a foreign country that is at war, under threat of a volcano, or faced with some other act of god or war may not be covered. Similarly, your coverage may restrict your activities, excluding coverage, for example, if you die while bungee-jumping. This type of exclusion is not based on the location, and even bungee-jumping in the United States is considered too risky for most traditional life insurance policies.
Aside from such obvious high risks, it does not matter where you happen to be when you die. As long as you are obeying the terms of the contract, your coverage will follow you around the globe, and the insurance company will honor the contract when you pass away.
Read your policy carefully, and have any parts you do not understand explained to you by your insurance company or agent. Any exclusion which could limit the effectiveness of the policy will be contained in it, and you are responsible for following the terms of the coverage exactly as they are presented in the policy.
Answered July 21, 2015 by Anonymous