International term life insurance works just like a U.S. term life insurance plan, but with a couple of differences. First, U.S. term life usually will not cover you, or pay, if you are outside the continental U.S. for more than a summer, or for more than a vacation. (You can view our international term life insurance plans here at www.gninsurance.com/overseas-term-life-insurance.) Below is a quick snapshot of additional information we send to our clients with some pointers on international term life and why the pricing is different. You should also know that international term life will only go up to 10 years maximum per policy period. Then you must renew. Some of the plans allow you to keep it for any amount of time after/if you return to the USA permanently. Others will need to be replaced with a domestic plan.
Our GNI agents are here anytime you have questions on any international medical and term life question. Below is some information that we have compiled to explain why the premium for an international term life policy is usually higher than a term life cover here in the United States.
For additional information, you may reach our licensed international insurance brokers at email@example.com or call our toll free number at 866-636-9100 / our regular number is 480-633-9500.
On U.S. term life cover:
When you get a typical 5 year term in the USA, the premium will be a tad lower than a 10 year term life plan. The premium difference will not be as great as on an international term life. The reason why the premium is a little higher is the longer you are on the term life the more chance of you passing while on the policy.
- This type of term life, once medical considerations are taken into account, only have a variable of length of time you are on the plan and your current age.
On International term life:
- While some of the above applies, there is a big, and I mean very big variable that international term life has to contend with:
That variable is geographical instability. You and I see it every day on the news.
o Five years ago Egypt was a great place to go and relax. Now, they are experiencing war risk and uprising.
o Take Ukraine. 3 years ago it was one of the jewels of Eastern Europe. Now it is unstable and under occupation.
o Just look at the last 5 months. Who knew of ISIS / ISIL? Nobody. Now it is HUGE and in more than one country, even recruiting in places such as Indonesia and Southern Russia.
- So if you get a 5 year term life the underwriters are praying all is well during those 5 years. But add another 1 year even or up to 10 years total the risk climbs dramatically.
At this time on international term life:
- One option is to purchase 5 years now and then reapply in 5 years. The premiums will go up for sure because you are 5 years older. However, this may work for you due to savings over the first 5 years.
- Note: You may not be able to be accepted in 5 years on your same term life plan when you reapply. Why? Your medical history may cause you to be declined. Or the location you are going to may be a high risk.
These are just a couple points when considering length and type on international life insurance coverage.