The Dream Life – Or Is It?
The sound of waves crashing against the shore wakes you up. A gentle breeze is scented with salt and liberation. You get out of bed, make yourself a cup of coffee, and open your laptop to work from your Airbnb beachside. It’s the digital nomad dream.
But what if one day, it all changed? A sudden illness, an unexpected accident, a financial emergency. Would your family be all right? Would you?
Life insurance isn’t on most digital nomads’ radar. It seems like something for “settled” people — those with mortgages, kids in school, predictable 9-5 — the ones that pull a bit out of their monthly budget to go to this jukebox and rent a booth to just be. But here’s the fact: If you’re a location-independent entrepreneur, freelancer, or remote worker, you may need life insurance more than most people.
And chances are that you’re not even aware of it.
The Risks You’re Ignoring
And when you swap in freedom in exchange for a traditional lifestyle for a nomadic one, you lose security. And also in ways you might not have thought of.
Lack of Employer Benefits
9-5 job usually comes with perks. Health insurance, retirement plans, life insurance, in some cases. But as a digital nomad? You’re your own boss. So if something happens to you, there’s no safety net waiting. No employer to pay your costs, no guaranteed benefits.
That’s where life insurance can help out. If the worst happens, having a policy means that your partner, kids, or aging parents won’t be left scrambling.
Increased Travel Risks
Let’s be honest. When you are traveling between countries, trying to explore as much as possible in just a few days or even just learning the ropes of local transport, the risk of road mishaps escalates. Roads are different, traffic laws differ, medical systems may not be as sophisticated as yours. A simple scooter ride in Bali or hike in the Andes can be a transformative experience.
It’s not only about health insurance (which, by the way, you really should have). Having life insurance means your loved ones can avoid the financial cost of your medical bills and repatriation costs or loss of income if the worst happens.
Having Unstable Income or Individuals that are Financially Dependent
Let’s say that you build a remote business. It’s thriving, and you’re earning more than you ever did working behind a desk. But what if you’re not there to run it anymore?
What about your partner, kids, or even your parents who are depending on you? Life insurance gives them the financial security you are no longer able to provide. It’s an insurance policy so your dream story doesn’t become their financial horror tale.
Medical Expenses Can Erode Savings
You might be thinking, “I have an emergency fund.” Great! But that does get ridiculous when it comes to medical bills. Most in countries with highly expensive healthcare. A hospital stay in the U.S. can easily drain savings in a matter of days. If you’re in a location with little in the way of health care, the emergency transport alone could run you thousands.”
Life insurance can help pay for those costs if things go south. And some policies even pay out early if you’re diagnosed with a terminal illness.
Debunking the Jargons of Life Insurance
Since that time, a lot of misinformation has gained traction about life insurance, particularly among digital nomads. Let’s bust some myths:
“I’m young and healthy. I don’t need it.”
Youth doesn’t protect you from being invincible. Accidents, illnesses, unexpected situations — they don’t ask your age before occurring. And you tend to pay less for life insurance when you’re young and healthy, rather than when you’re older and may have medical issues.
“I don’t have kids or a husband, so what does it matter?”
But even if you’re solo, think of it this way: Who will pay your debts, your funeral, any outstanding bills if something happens to you? Your parents? Siblings? Friends? Life insurance can ensure your loved ones aren’t left with a financial burden.
“It’s too expensive.”
Not necessarily. Basic term life insurance can be surprisingly cheap. And it’s an investment that pays off compared to the cost of someone trying to pay a single hospital bill, evacuation flight, or in your family having no one to support them when you leave.
“I move too much. I can’t get coverage.”
The truth is – there are plenty of international insurance providers that are designed just for nomads! All you need is to discover the right one.
How to Choose the Best Life Insurance as a Digital Nomad
Not all policies are established with the same principles in mind. Here’s what you need to know when selecting life insurance:
International Coverage
Some life insurance policies are only valid inside certain countries. The best dietyou need as a nomad should have the world wide coverage.
Term vs. Whole Life Insurance
Term Life Insurance: Protects you during the term of the coverage (e.g. 10, 20, 30 years). Less cost but no longer applicable post-term
Whole Life Insurance: Permanent coverage with lifetime protection and cash value. Costlier but potentially worthwhile in the long run.
So, for most nomads, the smarter, cost-effective choice is term life insurance.
Flexibility
What if you’re traveling — can you update your policy then? Is it possible to increase coverage later? Be sure the provider is flexible as your lifestyle changes.
Exclusions
Some policies don’t cover high-risk activities (think scuba diving, skydiving or even traveling to certain countries). Read the fine print.
THE BOTTOM LINE: IT JUST IS ABOUT PEACE OF MIND
Living like a digital nomad is thrilling, adventurous, and often uncertain. But with that adventure comes risk.” And while we all like the idea of going with the flow, thinking ahead is also important.
Faith has nothing to do with life insurance. It’s about ensuring that the people you love (and yourself) are provided for if things don’t go according to plan.
So the next time you’re sipping coffee in a new country, watching the sun set over a foreign landscape, ask yourself: If something happened tomorrow, would I be prepared?
If not, perhaps it’s time to re-evaluate.
What’s Your Take?
So, you’re a digital nomad with life insurance? Or are you still not sure either way? Comment below and let’s discuss it. Your future self (and perhaps your loved ones) may thank you.