If you are planning to go on holiday or visit friends and family outside the country this festive season, be sure to check the terms of your life policy to know if you are adequately covered while away.
Lee Bromfield, CEO of FNB Life, says many consumers mistakenly assume that travel insurance will cover all their insurance needs. However, you need life cover back at home to cater for the financial needs of your beneficiaries in the unfortunate event that you pass away. Bromfield says, “When travelling abroad, it is essential to ensure that your life insurer is aware of where you are going, how long you intend to stay and what activities you will be taking part in.”
Your insurer advise if your plans have an impact on your policy, so that you can make any necessary special arrangements, such as taking out additional travel insurance where there is a gap in cover. Bromfield further adds, “If you are travelling to a relatively safe destination and aren’t going to be involved in dangerous activities for a period of less than 90 days, many life insurers will continue to cover you without reservation. The terms may vary depending from insurer to insurer, hence it is recommended to notify your insurer.” Also, don’t forget to update your policies annually before going on holiday during the festive season.
Questions to ask when reviewing your policy:
- Level of cover. If something tragic was to happen while you’re on holiday, is the amount of money that is going to be paid by your life policy still enough to cater for the financial needs of all your beneficiaries or family members?
- Changes in your life. Are there any changes that occurred throughout the year that impacted your financial or insurance needs? For example, having a child, getting married and securing a higher paying job.
- Beneficiary details. Are you still happy with the beneficiaries you have nominated and are their contact details still accurate?
Taking a few minutes of your time to inform your insurer about your travelling arrangements and making sure that your life policy is properly updated before going on holiday will give you peace of mind, knowing that your loved ones will be financially protected should anything happen to you.
Source: FNB. Image: Pixabay