Travel Insurance Beneficiary - 2021 Review
Many travel insurance plans include an Accidental Death and Dismemberment benefit.
The insurance pays a sum of money if the traveler loses a hand, eye, or foot during the trip. If the traveler dies in an accident during the trip, it pays the full amount. That is called a death benefit.
The AD&D or travel accident insurance is different from accident medical insurance. For example, many policies include $100,000 or more to pay for treatment after an accident. However, travel accidental death and dismemberment insurance pays compensation for the loss of a limb or life.
What is Travel Accident Insurance?
Travel accident insurance refers to Accidental Death and Dismemberment insurance.
This coverage pays a cash benefit if a traveler accidentally loses an appendage or their life during the trip.
Suppose a traveler dies from an illness or sickness during the trip. Travel accident insurance does not pay a bean!
Sometimes, covered accidents are limited to flights or common carriers (plane, train, bus, cruise ship, ferry boat, etc.), while others cover you 24/7 during the trip.
What is a Beneficiary?
A beneficiary is a person who receives the life insurance money.
Standard life insurance allows you to name your beneficiary when you buy it.
Travel accident insurance often has a life insurance component that pays if a traveler dies in an accident during the trip.
Whom Should Be Named As Beneficiary?
You can name anyone as a beneficiary. However, some states have laws that require residents to name their spouse as the life insurance beneficiary.
If your state has no such laws, choose someone who would be responsible for arranging your burial. The life insurance proceeds can help cover those costs.
If There Is No Named Beneficiary
If you do not designate a beneficiary on your policy, typically, it pays the death benefit to your estate. Then, the probate court distributes it according to the will. Alternatively, it could pay your next of kin.
Of course, the exact process depends on your resident state. Some states have community property laws that determine how to pay life insurance proceeds. If the policy did not have a named beneficiary, those laws might direct the benefit payment to the spouse.
How to Collect the Travel Accident Insurance Benefit
It’s unusual for travel insurance policies to ask for beneficiary information. Consequently, they cannot contact your beneficiary easily.
To make it easier for your family, provide them with the travel insurance information before leaving on your trip.
In case of an emergency, your family can contact the insurer to find out the next steps. In most cases, the insurer requires a death certificate to pay for the accidental death benefit.
However, if your family member died on the trip, the insurer will likely provide the repatriation of remains. Return of remains in a part of every Emergency Evacuation insurance. If so, they are already aware of the death and probably have the death certificate.
How Do I get Travel Accident Insurance?
Most policies at AARDY offer an accidental dismemberment and death benefit. We can help you find the right one for your needs.