How to Get Life Insurance as a Digital Nomad

Digital nomads earn a living by using technology while constantly traveling wherever they want. These people have an on-the-go lifestyle that satisfies their wanderlust. However, there is a certain drawback to this nomadic lifestyle. 

Digital nomads are location-independent, 33% of which have plans to remain that way. The absence of an address or fixed location would make it challenging for digital nomads to find life insurance. However, while purchasing a life insurance policy might be challenging, digital nomads can get a life insurance policy with a substantial death benefit.

Besides that, I recommend looking into Digital Nomad Visa and what countries support this kind of visa.

Is Life Insurance Vital for Digital Nomads?

As a digital nomad, planning for your life is as essential as planning for your next trip. No matter what lifestyle you choose, where you live, or what stage of life, having life insurance should be a critical component of that preparation.

The death benefit from a term life insurance, variable universal life insurance, or any type of life insurance might be used to pay considerable expenses. This includes leaving money for your beneficiaries, paying off your outstanding debts, and taking care of final costs. In addition, life insurance can also help your family members return your body home for their last goodbyes.

What Type of Insurance Do Digital Nomads Need?

If you’re hired by a firm and are required to work remotely, you might be covered by a group insurance policy by your employer. In some cases, the group insurance policy will require your employer to pay your premiums up to a certain amount.

On the other hand, having life insurance may get complicated if you work or travel overseas. It’s vital to know those self-employed digital nomads are responsible for creating their own insurance benefits package. This may include life insurance, travel insurance, and health insurance.

A life insurance company will base your eligibility on your insurability. However, since the life you choose exposes you to many places and conditions, you’re susceptible to a wide range of risk factors and diseases that a stationary person wouldn’t be. So to lower the risk level you have in the eyes of the life insurance provider, it would be best to have travel insurance and visit a doctor every now and then under a health insurance plan.

How To Apply for a Life Insurance

As a digital nomad, you can apply for life insurance just like anyone else. However, as mentioned earlier, it will be challenging for you when it comes to documenting a permanent address. 

Digital nomads who own a house or have a permanent status in the US wouldn’t have any difficulty with the address requirement. However, if this isn’t your case, you can choose to keep a home in the US or use a relative’s address. 

It’s vital to know that some insurer allows you to place a relative’s address in your application if you don’t have any. However, other insurers don't accept this practice. Thus, it would be best to contact the insurance company and ask them about the matter. 

What You Need to Know

The following are a few tips that you need to know when it comes to getting life insurance:

Be Honest on Your Application

A life insurance policy has provisions concerning mistakes, omissions, and misstatements. If these provisions are crucial to your death, your policy might be void. For example, if you stated in your application that you’re stationary instead of a digital nomad, and your death was due to being in a high-risk country, your policy might get void.

If your policy gets void, the insurer will more likely deny the claim because of misrepresentation. On the other hand, your beneficiary can always state or argue that the information you’ve failed to disclose is unimportant to your death. However, this can be tedious and time-consuming. Thus, it would be best, to be honest during your application to avoid any of this from happening.

Pay Your Premiums on Time and in Full

It’s easy to lose track of time and bill payments when you’re constantly traveling, especially during different time zones. However, it would help if you always remembered that once you get life insurance, you’ll need to make premium payments on time. 

If you want your payments to be less hassle, it would be best to set up auto-pay for a seamless transaction. That way, you don’t have to worry about not paying your bills on time.

To Wrap It Up

Becoming a digital nomad has become a modern dream lifestyle for most of us. The possibilities of working while you travel to places now exist in almost every industry. However, while so many things need consideration before you pursue a nomadic lifestyle, one of the most overlooked things would be your life insurance.

Life insurance is crucial for a location-independent lifestyle. It’s always a smart move to prepare since you’ll be exposed to various risks while being a digital nomad. Furthermore, life insurance also benefits your beneficiaries financially by securing your business and supporting your family when you die.