If you frequently travel abroad, then getting a term life insurance policy can be a little tricky. Luckily, the only time that this applied to me is when I was in Iraq, but I was covered under the military’s life insurance policy and didn’t have to worry about getting approved by a third party carrier.
There are a lot of people that live abroad, or spend a lot of their time traveling, that assume that they can’t get life insurance, but this isn’t always true. There are still several options for these people to get affordable life insurance coverage through different companies. Not having life insurance coverage could be one of the worst things that you do for your loved ones.
I recently took a call from a gentleman who was a US resident in the state of Florida, but also had a residence in Jamaica. He split most of his time between the US and Jamaica, so he wasn’t quite sure how getting a term life policy would work.
How to Get a Life Insurance Quote if You’re Not Currently in the U.S.
First things first, if you do travel or live abroad then getting term life insurance, at least at a preferred rate, might be a little bit more difficult. It all really depends on how much you travel. If you are only out of the country for about two to four weeks a year then most carriers won’t frown upon approving you at a preferred rate. If you’re like this gentleman where he’s out of the country greater than six months a year, than it’s going to be a lot more difficult. It’d probably be really hard to be approved at a preferred rate. It may also be hard to get all the insurance carriers on board.
As it turns out, there are some or the top life insurance companies that will insure someone that is living outside the US, even if they are gone the majority of the year. These companies include Transamerica Life, Prudential, and American General.
The only catch is that if you are traveling greater than two to four weeks a year, then even these companies most likely want approve you at a Preferred rate. The highest rate that you’ll be able to get is a Standard Non-Smoking Plus. This is right between the Preferred rate and a Standard rate, so yes it could be worse and more expensive, but at least, you know that you can get some coverage.
The gentleman that was interested in getting life insurance at 50 years of age and was looking at getting a 20-year term policy. He was going to decide between a $500,000 term life policy or a $250,000 term life policy, depending on what the quote came back. He also was looking to have a monthly pay versus paying his premium annually.
20 Year Term $500,000k Face Amount for a 50 Year-Old Male Standard Plus Rate
Between the top three on the $500,000 30-year term policy, the cheapest option was with Transamerica at $167.83 per month. The other carriers, Prudential and American General, were only $3 and $6 off that price respectively.
20 Year Term $250,000 Policy 50 Year-old Male Standard Plus Rate
For the 20-year $250,000 term policy, the rate came to be $88.88 per month, but in this case, it was Prudential Financial that has the lowest rate. On an annual rate, that was only $987.
Other Factors For Getting a Life Insurance Policy if Living Outside U.S.
Other items you’ll want to consider if trying to get approved for a life insurance quote in the U.S. is that you’ll have to get your medical exam while in the U.S. There are really no exceptions on this one. The other factor is that the policy will most likely also have to be delivered to you while living in the U.S. You’ll have to double check with the insurance company to see specifically how they handle it.
How much Life Insurance you need
Aside from finding an insurance company that offers you quality coverage, you need to determine how much coverage you need. There are several different factors that you need to consider, but the main two are your debts and your annual salary.
If you were to pass away tomorrow, your family would be left with all of your debt. It’s as simple as that. Would they have the money that they need to pay off all of those expenses? This is where a quality insurance policy can be an extremely useful tool. It gives them the money they need to pay off any final expenses that you leave behind.
The other thing that you need to consider is your annual salary. If you’re one of the main income earners in your household, your family would experience financial lose if you were to pass away. Having life insurance gives them the money they need to have time to find a way to replace your income without losing their standard of living.
Because you’re already going to be at a disadvantage for your premium rates, you want to ensure that all of the other factors, aside from traveling, are going to be in your favor. The biggest one is your health. The insurance company is going to go through the results of the medical exam with a fine-tooth comb. If you want to save money on your insurance policy, you want to get sparkling results on your medical exam.
There are a few ways that you can do this, mostly through a healthy diet and exercise. Both of these are going to help you lose weight, lower your cholesterol, and lower your blood pressure, which are all great ways to get the best results from you medical exam. If you’re overweight, possibly from all the travel, you’re at a higher risk for having severe health complications later in life, which the insurance company is going to offset that risk with high premiums. Take the time to shed that extra weight that you’ve been carrying and you’ll enjoy some extra money every month.
If you want to save more money on your policy, you need be listed as a non-smoker on your application. Being a tobacco user is going to automatically cause your rates to shoot through the roof, on top of your already high rates because of living abroad. If you want to save money, kick those cigarettes to the curb! Additionally, not smoking is also going to improve your health, which will give you even better results from the medical exam. It’s a win-win.
The best way to ensure that you’re getting the lowest life insurance premiums, is by working with an independent agent. These agents are very different from a traditional agent because they represent more than one company and can help you find the policy the fits your needs. I know that finding life insurance if you live abroad can be a struggle, but it doesn’t have to be. Working with an independent agent, like myself, can make the process quick and easy.
If you have any questions about life insurance or the different options for anyone that lives abroad, please contact us today. I would be happy to help you find the perfect policy to fit your needs. You never know what’s going to happen tomorrow, but you can plan for the worst.