If you are planning to go on holiday or visit friends and family outside the country over the festive season check the terms of your life policy to ensure you are adequately covered while away.
Lee Bromfield, CEO of FNB Life, says many consumers mistakenly assume that by merely taking out travel insurance all their insurance needs will be met.
However, you shouldn’t overlook the fact that apart from medical expenses, personal liability, travel delays, lost or stolen luggage, amongst other insurable risks while traveling abroad, you also need life cover back at home to cater for the financial needs of your beneficiaries in the unfortunate event that you pass away.
“When traveling 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,” advises Bromfield.
Your insurer will then advise if your plans have an impact on your policy, enabling you to make special arrangements if necessary, such as taking out additional travel insurance, where there is a gap in cover.
“If you are traveling 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,” says Bromfield.
He further advises consumers to update their policies annually before going on holiday during the festive season.
When reviewing your policy ask yourself these questions:
- Level of cover – if something tragic where to happen while you are 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 traveling 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,” concludes Bromfield.