Medical tourism has become an increasingly popular choice for individuals seeking affordable healthcare abroad. Countries such as Thailand, India, Mexico, and Turkey have become medical tourism hotspots, offering procedures at a fraction of the cost compared to the U.S., Canada, and Europe. However, what many people fail to consider is how undergoing medical treatment abroad can impact their life insurance coverage. Many life insurance policies contain clauses that either limit or outright deny claims based on overseas medical procedures. Companies which have denied these claims include: Banner Life; Ameritas; Thrivent Life; Minnesota Life; and more.
There are several reasons why a claim could be denied if the deceased had undergone medical treatment abroad: Non-Disclosure of Treatment – If the policyholder received medical treatment in another country but failed to inform the insurance provider, the insurer might argue that the omission was a form of misrepresentation, making the policy invalid. Policy Exclusions for Foreign Medical Treatment – Some policies explicitly exclude coverage if the insured undergoes certain medical procedures in another country. Complications from Unregulated Healthcare – If a person dies due to post-operative complications from a medical procedure performed overseas, insurers may dispute the legitimacy or safety of the treatment, arguing that it falls outside their risk parameters. Travel Restrictions and High-Risk Destinations – If the insured travels to a country deemed high-risk due to political instability, inadequate healthcare standards, or travel advisories, insurers might deny claims based on policy exclusions.
In one case, a 30-year-old woman from California., traveled to Thailand for a Brazilian Butt Lift (BBL) procedure. While the cost of the procedure in the U.S. was over $15,000, she found a clinic offering it for $3,000. Unfortunately, shortly after surgery, Olivia developed severe complications and died due to a fat embolism. The life insurance company refused to pay out her policy.
Another case involved Fran, a 56-year-old businessman from Florida, was diagnosed with a heart condition requiring bypass surgery. He decided to have surgery at a well-known private hospital in India. The procedure was successful, but several months after returning home, he died. When his wife filed a life insurance claim, the insurer denied it, arguing that the initial surgery was not performed in a country recognized by the insurance provider for "approved medical care."
Another instance involved Tina a 40-year-old woman from New York, who had dental work done in Mexico due to the high costs of large blue implants in the U.S. A few months later, she developed a severe infection that led to sepsis, resulting in her death. Her life insurance company denied the claim.
While medical tourism offers significant cost savings, it comes with risks of denied life insurance claims. Our top life insurance lawyers fight denied life insurance claim cases and win.