Term Life Insurance Articles
Why Term Life Insurance Quotes May Be Affected By Your Past Travel History
2010-07-17
Life insurance, at the very least, removes the burden of final expenses from your family. Ideally, it also provides a financial safety net for your dependents in the event of your death. Term life insurance is a policy that is purchased for a specific number of years or "term." If the insured dies during the term, the beneficiary collects the face amount of the policy. As with all types of insurance products, there are preferred risks and exclusions for high risks. It makes sense that the insurance provider would minimize the risk they take when insuring a person's life. Some types of risk exclude a person from being eligible for coverage. Other risks result in a higher premium being charged for a lower amount of coverage. One risk factor may be your travel history.
People who live unhealthy lifestyles are big risks for insurance companies. Bad habits such as smoking, drinking and substance abuse result in the person paying much higher than average premiums for a minimum of coverage. These kinds of habits can result in the person being declined for insurance. Poor health and issues like obesity can have the same detrimental effect on term life insurance premiums. Your travel history may also be viewed as high risk.
Your job or occupation may require frequent travel. People who travel frequently are at greater risk for illness or accidents resulting in death. This risk is compounded if the travel is to foreign countries. Some companies have a stipulation against extensive travel to politically unstable or undeveloped countries. It is important to understand this type of stipulation and what is considered "extensive." You may be declined coverage if your past and future travel requirements are considered excessive. In some cases, coverage may be available with a more expensive premium since this travel places you in a high risk category.
When applying for term life insurance, it is important to be completely truthful on the application. Omitting details can have serious repercussions. In the event of death, your beneficiary may be unable to collect if fraud can be proven. If your travel habits have changed and foreign travel is infrequent or no longer required, make that fact clear. It could result in a lower premium if the company doesn't allow past travel history to place you in a high risk pool.
It is always prudent to shop around when making any substantial purchase and term life insurance is no exception. It is especially important if you are considered high risk. Be honest about your travel history, habits and future travel plans. Compare the premiums and coverage amounts among various term life insurance providers to find the best policy.
