Insurance for a digital nomadic lifestyle
A digital nomad life is exciting, freeing, and adventurous. Imagine a month working from a beach in Bali, followed by espresso in a Parisian cafe the next. No office. No cubicle. You have a laptop, internet access, and the world. But here’s one that most digital nomads don’t put much thought into — life insurance.
Yep, that mundane, adulting thing. Turns out, it’s a big deal. And the question is, do digital nomads really pay more for life insurance than someone leading a “normal” 9-to-5 life? Let’s take a look and discuss the factors that can make life insurance either cheap or expensive for the nomadic worker.
The Risk Factor: Do You Appear a Higher Insurance Risk?
Life insurance companies specialize in risk assessment. The greater risk you represent, the bigger your premiums. And let’s be real — if you are constantly on the go, sometimes in developing countries or risky areas, red flags are arising for insurers.
Travel to High-Risk Countries — If you spend the majority of your time in countries that are considered risky (conflict zones, areas with poor healthcare infrastructure), your insurer may either inflate the rates or refuse to offer coverage at all.
Extreme Activities – Bungee jumping in New Zealand, scuba diving Thailand, or hiking remote mountains? Sounds fun. Insurers, however, see peril.
Inconsistent Medical Access — If you become ill, can you easily access quality health care? Some insurers worry about that, and rates could be affected.
Now, if you’re heading to post-developing, low-risk destinations — Portugal, Canada, Japan — you might avoid the added costs. But if your passport is chock-full of stamps from riskier regions, be prepared to cough up more.
Residencies and Taxes: Where Do You “Live”?
Now here’s where it gets messy. Digital nomads don’t always come home. Some jump from one place to another, never really “living” anywhere for long. Others still keep a home base for tax reasons.
Your Place of Legal Residency Matters – Many insurance companies derive your rates based on what country you’re legally residing in. If you’re legally living in a country with high-cost insurance, you could be paying more even though you’re rarely in your so-called home.
Offshore vs. Local Insurers – Some nomads go with an international life insurance provider instead of a home country company. This can be less expensive or more expensive depending on coverage and risk factors.
The key? Are you officially registered and how does that affect your rates?
Health and Lifestyle: The Major Determinants
Regardless of where you live or where you travel to, your own personal health is a major factor in determining your life insurance rates.
Pre-existing Conditions If you have chronic illnesses like diabetes, hypertension or heart problems, insurers could raise video rates or limit coverage.
Fitness and Well-being — Non-smokers, active individuals and people who maintain a healthy body mass index often receive better deals. If your lifestyle as a nomad includes abundant exercise and healthy eating, you might see lower premiums.
Alcohol and Drug use – If you are occasional party merry go round in your digital nomadism, insurers will consider you in high risk. Be honest when applying for coverage.
There are even insurers that offer discounts for policyholders who are able to demonstrate healthy lifestyle habits, so it’s worth investigating.
The Kind of Life Insurance You Select
There is no one insurance-size-fits-all liability approach. Digital nomads must decide what type of policy fits their lifestyle.
Level Insurance – Protects you for a set period of time 10, 20 or 30 years In general, it is less expensive than whole life insurance and makes sense if you are simply looking for protection while you travel.
Whole Life Insurance – Provides permanent coverage but is much more costly. It can, however, serve as an investment vehicle.
Expat or Global Life Insurance – These plans are made for those who travel the world and provide coverage worldwide, although some may have exclusions for pre-existing conditions or age limits.
Your budget and your lifestyle’s longevity will determine the choice.
The Best Deal for a Digital Nomad: How to Get It
So how do you cut life insurance premiums on your great life? Here are some key tips:
Select Home Locations With An Insurance Limit – Restrict travel to hazardous locations when organizing insurance, if feasible.
Use When You’re in a Safe Place — Some insurers underwrite based on where you’re applying. If you reside in a high risk country, you may want to apply prior to travel.
Be Honest But Smart – It is a terrible strategy to lie on your insurance application. But there is a difference between needless disclosure and fundamental honesty.
Compare between insurers — insurers have different views of digital nomads. You can compare policies to get the best fit for your lifestyle.
Look Beyond Domestic Providers – Some insurance companies only offer plans for the world traveler. They may provide better rates and more flexible terms.
The Bottom Line: Are Digital Nomads Paying More?
It depends. If you have a relatively safe, healthy, and stable nomadic life, your rates might not be any higher than those of a traditional worker. But if you’re hopping between high-risk regions, participating in adventurous activities, or have health issues, you might pay much more.
You can get life insurance as a digital nomad, after all. You just need a little more thought and careful planning. With a location-independent lifestyle, the freedom comes with added responsibility — including safeguarding your future (and your loved ones’ future) as well.
So nomads, have you got your life insurance yet?! Or are you playing the odds and praying it works out?