The majority of travel insurance policies include a type of life insurance coverage known as Accidental Death and Dismemberment (AD&D). This insurance benefit provides financial support, usually in the form of a lump sum cash payment, to policyholders that suffer a loss of life, limb, or sight during a covered trip.
If you purchase a travel insurance plan that includes the Accidental Death benefit, you will be asked to name a beneficiary. A beneficiary is the person who receives the AD&D benefit payout if you pass away in an accident while traveling.
Details about AD&D exclusions and coverage limits can be found within your policy’s Certificate of Insurance.
Your travel insurance company will want to know where to send the AD&D benefit payment in the event of an emergency. By naming a beneficiary, you control what happens to the funds connected to your policy and make it easier for your provider to make the necessary arrangements.
The individual you name will remain private, and most travel insurance companies will not ask for detailed contact information. With that in mind, be sure to communicate with your named beneficiary before your departure date to provide them with important details about your policy.
A beneficiary of a travel insurance policy will typically receive anywhere from $10,000 to $100,000 in the event of an accidental death to a policyholder. The cash amount that your beneficiary will receive will depend on the type of policy you choose.
Travel insurance plans typically include one of three kinds of AD&D coverage, each providing a different level of financial support.
Not all travel insurance policies include AD&D coverage. Refer to your policy details for more information regarding coverage limits.
Your travel insurance beneficiary should be the individual you wish to receive your AD&D payout in the event of your passing. This will likely be a spouse or immediate family member, however you are free to name anyone you want as your beneficiary.
If your desired beneficiary is also your travel companion, it’s recommended to add a secondary beneficiary. This way, you’re covered if you both pass away in a travel accident.
It’s also advised to name an adult as your beneficiary. Since the money involved can be significant, it is important to name an individual that has the capacity to responsibly handle large sums of money.
If you are purchasing a policy on behalf of someone else, such as a parent, you can name yourself as the beneficiary of the insured person.
Examples of common travel insurance beneficiaries include:
If you fail to name a beneficiary, the AD&D payment will likely go to your estate and be distributed with the remainder of your assets. In some cases, your funds may need to go through probate. This not only delays the distribution process, but can significantly reduce the amount of money your family will receive.
Most travel insurance companies will allow you to change the named beneficiary at any time before you depart for your trip. This can often be done online or by contacting your travel insurance provider’s 24 Hour Emergency Assistance line.