Travel life insurance

What is travel life insurance?

Travel life insurance is a term that may often be used by Australians who are looking to find travel insurance with built-in protection in the event that they suffer from an illness, injury or death. Essentially, they are considering a travel insurance policy that also includes the core cover features of a life insurance policy.

Travel insurance policies have features and benefits that are designed to cover any financial losses not only as a result of illness or injury, but also in events that are out of your control, such as lost baggage, flight cancellation, and credit card fraud. Most travel insurance plans will also provide cover for death caused by an accident. This type of policy commences from the date listed on the certificate of insurance when you are about to start your journey and ends when you return to Australia.

Additionally, life insurance policies are designed to provide a benefit payment should the policyholder pass away, be temporarily or permanently disabled and are unable to work due to an illness or injury. Life insurance offers long-term financial protection and policyholders have the flexibility to select the period of time they want to be covered for. Most policies will allow for cover to be extended without the need for further medical underwriting.

How can I Get Travel Life Insurance Quotes?

If you are looking to get a quote for travel insurance, follow the link below and compare different types of cover available to suit your needs and situation.
Looking to compare life insurance quotes from Australian providers? Submit your details below to receive a quote.

Compare Life insurance quotes from these direct brands

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
No expiry age as long as premiums are paid
First month FREE when you take out Real Family Life Cover. Available for a limited time (T&Cs apply).
Receive a 10% discount on the second person when two applications are submitted at the same time, and both policies are issued.
Choice of cover options and flexible premiums to suit your budget. No lock-in contracts and fast application.

Tailored life insurance so you know what you're covered for upfront. Take out a policy and get a $100 bonus gift after holding cover for 2 months. T&Cs apply. Ends 31 March 2019.
No expiry age as long as premiums are paid
Cover up to $1.5 million with Guardian Life Insurance.
Protect your family with up to $15 million in cover. Plus, get your first month free. T&C's apply.
No expiry age as long as premiums are paid
Receive one month's premiums off every year if you pay annually upfront. T’s and C’s apply.

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Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
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Life Insurance vs Travel Insurance: What are the Differences?

There are a number of notable differences between travel and life insurance as each policy is catered to meet specific type of needs.

DifferencesTravel InsuranceLife Insurance
PurposeTo provide financial relief in the event of an illness, injury, and any other personal loss that occur while the policyholder is travelling. Cover is either taken out for both domestic and/or international trips.To provide financial assistance for the policyholder and/or their dependents in the event of death, serious illness, or disability.
Types of cover
  • Single trip travel insurance
  • Annual multi trip travel insurance
  • Senior travel insurance
  • Adventure/sports travel insurance
  • Life cover
  • Total and permanent disability (TPD) insurance
  • Trauma/critical illness insurance
  • Income protection
  • Business expenses insurance
  • Funeral insurance
Policy features and optionsTravel insurance features may vary between providers, but will generally include:

  • 24/7 overseas medical assistance and hospital expenses
  • Accidental death, disability and loss of income
  • Cancellation fees and lost deposits
  • Flight disruptions and delays
  • Credit card theft, loss or fraud
  • Luggage and personal effects
  • Alternative transport and accommodation expenses
Different types of life insurance will have different features and options available on each policy. As an example, some of the benefits that you can obtain from life cover include:

  • Death and terminal illness benefit
  • Funeral/final expenses benefit
  • Guaranteed future insurability
  • Financial planning benefit
  • Interim accidental death benefit
Period of coverStarts when you begin your journey from Australia and ends when you return from your trip to Australia.The length of cover for different life insurance policies may vary between providers. However, most life insurance plans may continue your cover until your 99th birthday. You also have the power to choose the cover period most suitable to your needs.
Death coverYes, but only if the cause of death is accidental, with a limited benefit amount of generally around $25,000. This amount is also payable if you pass away within 12 months of an injury or terrorist act that occurred during your trip.With life cover, you can choose a cover amount that is most suitable to your needs. Other types of life insurance generally provide a benefit payment to the nominated beneficiaries if policyholder passes away.
Loss of income coverYes, travel insurance will provide a weekly benefit payment in the event that you are unable to work in your usual occupation when you return to Australia as a result of an accidental injury during your trip.The length and amount of cover can vary significantly between providers. You may be entitled to receive the monthly benefits to a maximum of up to $1,500 per month, for a period of 13 to 26 weeks.You can protect yourself against loss of income due to a temporary disability with income protection insurance. Most policies will cover you for up to 75% of your annual salary and you can choose a benefit period most suitable to your needs, from 1, 2, 5 years, or up to age 65.
Medical and death repatriationYour travel insurance policy will cover any costs incurred from organising your repatriation, either for medical reasons, or death, to Australia.With income protection, the transportation expenses to return you back to Australia will be reimbursed if you have been injured for a specific amount of time. Life insurance will also cover repatriation or return to Australia with diagnosis of terminal illness
Purchasing coverTravel insurance can be purchased entirely online.To purchase life insurance cover, a medical underwriting will generally be required. Although, you can also now purchase cover through direct life insurance providers and apply for a policy via online or phone.

Finding Travel Insurance with Life Insurance Cover

As previously mentioned, most travel insurance policies have death and disability cover; however only if the cause is accidental. You will only be covered for death, disability or loss of income while you are travelling and it will cease once your trip has ended. The amount of cover that you can obtain is often quite limited - usually around $25,000 for death and between $10,000 and $25,000 for disability cover.

You may be looking for the long-term protection of life insurance to provide the financial buffer that you and/or your dependents need should you pass away, or become temporarily or permanently disabled. Unlike travel insurance, life insurance will provide a benefit payment if your death is either by an accident or due to natural cause. You can also apply for a cover amount that is sufficient for your family to keep on top of any daily living expenses, outstanding debts and future children’s education expenses.

Find How Much Life Insurance Cover Amount You May Need

Life Insurance and Travel: Will I be Covered while I am Overseas?

You may be wondering if you will be covered under your life insurance policy for when you travel abroad. The good news is, most life insurance providers offer their policyholders access to cover no matter where they are in world, 24 hours a day 7 days a week.

Will trauma or disability cover medical expenses while I am abroad?

While trauma and disability insurance may not specifically cover medical expenses that are incurred while you are overseas, the benefit payment that you receive when you lodge in a claim can be used to cover these expenses. Remember that most Australian trauma and disability policies will provide worldwide cover. If you are getting monthly benefits from your income protection policy, you will generally be required to return to Australia to continue receiving payments after a nominated period of time.

Learn more on the benefits and features of trauma insurance

Can I Get a Short Term Travel Life Insurance Policy?

Travel insurance provides cover for death and disability if they were caused by an accident throughout the duration of your journey, and therefore, it only covers you for a short-term. It starts from when you begin your journey and end when you return from your travel.

Life insurance, on the other hand, is designed to provide long-term cover. However, you may find certain types of life insurance, such as term life (or life cover), provide cover for a short as a 5 year term, or you can opt to extend until you turn 99 years old.

Considerations for Travel Insurance and Life Cover If You are Travelling

It is important to note that travel insurance and life cover are two very distinct insurance policies and they have different purposes. Both products require you to consider your own situation when reviewing different policy features to ensure that you have the right level of protection in place.

Remember that you cannot rely on travel insurance alone to provide financial relief to your family should you pass away, or suffer a serious illness or injury while travelling. The benefit payout is not sufficient to cover current and ongoing financial obligations. The true value of travel insurance is found in other cover for overseas medical expenses, trip cancellation and loss/damage to luggage and personal items.

It is essential that you compare different policy options when considering travel and life insurance plans. Speaking to a life insurance consultant and/or travel insurance representatives can provide additional assistance that you may need when determining which cover is suitable to your situation. This is to ensure that you are getting the right level of cover and at a price that you can afford, allowing you to enjoy your holiday experience to the fullest.

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Maurice Thach

An insurance researcher and writer for who loves finding an answer to the question "Am I covered for ________?" Maurice has also completed a Tier 1 Life Insurance and a Tier 2 General Insurance Certification under ASIC's Regulatory Guide 146. This means he can confidently provide general advice for life insurance and non-life insurance products.

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