Thinking About Relocating? Review Your Life Insurance First
You may have read that it’s a good idea to review your life insurance regularly. Still, if you’re moving abroad or already living overseas, an expat life insurance review is more critical than ever. Many domestic life insurance policies aren’t designed to cover you internationally. Some may become void when you change your country of residence, while others could exclude claims made outside your home country or restrict premium payments from foreign accounts.
Whether your relocation is short-term or long-term, taking the time to review your life insurance can help ensure your policy continues to protect you and your loved ones, no matter where you go in the world.
Here are ten reasons why an expat life insurance review should be at the top of your international moving checklist.
10 Reasons to Review Your Life Insurance Before Moving Abroad
1. Are You Relying on Your Domestic Life Insurance Plan?
It’s time to read the fine print. Some life insurance plans may not pay out if the policyholder dies while residing outside their home country. Insurers consider life in many foreign countries a risk, and their list may include countries you would not expect.
Are you spending more than three months overseas? This may also change your residency status in the eyes of your policy. Yes, even if you don’t have residency overseas! Many policies consider individuals who are outside their home country for more than three months to be foreign nationals or non-U.S. residents. This makes them subject to different underwriting rules. In some cases, foreign nationals may not be eligible at all.
Changes to your status, such as obtaining citizenship in your new country, can also invalidate your home country’s policy. Again, this is because, for policy purposes, you’re considered a foreign national. If you are moving to the U.S., you can obtain life insurance, even if you are not a U.S. citizen.
You could invest in a new policy. Or you could get an international life insurance policy. International life insurance will cover you in your new country, in your home country if you decide to repatriate, or any other country you choose to move to. When you review your policy with a professional advisor, you’ll get the advice you need to make the right choice.
2. Have You Recently Changed Jobs?
If you have, you definitely need to review your life insurance plan. You need to ensure the benefits level of your plan aligns with your current salary.
3. Are You Looking After an Aging Parent?
They could be in dire straits if you pass away without including them in your life insurance plan. An expat life insurance review will determine the benefit level you need to ensure they are cared for if you are not present to do so.
4. Did You Find Your Soulmate Abroad?
If you are planning to build a life together, it’s important to review your life insurance to ensure that your partner will be taken care of if you pass away. You should review the listed beneficiaries to ensure they align with your current wishes. You need to review the amount of your policy to make sure it covers what your spouse needs. If your life insurance is from another country, you will also need to consider the currency in which it pays out.
5. Has Your Family Grown While Living Abroad?
Congratulations! But now you have even more dependents to think about. This is where an expat life insurance review comes into play. If they are relying on your salary, make sure your policy will keep them secure while you are gone. Is their residence in your new country dependent on your status? Then they may also need the money to repatriate to your home country after you’ve passed away. If they rely on you for international health insurance, they’ll need money to pay for it. And if your child is going to private school or to college, they will need funds after you’re gone to continue their education in the stable environment they have become accustomed to.
6. Has Your Partner or Child Become so Ill That They Need Special Care?
You need to ensure that they will still be able to receive that care once you have passed away. When you review your policy, you can adjust the benefit level to ensure that it will fund their care for as long as they need it.
7. Has Your Marriage or Partnership Dissolved Since You Moved Abroad?
By reviewing your life insurance, you’ll see if your former partner is still a beneficiary on your policy. You may wish to reorder your beneficiaries and perhaps change the value of your policy.
8. Have You Bought a New Home Since Moving Abroad?
Will your life insurance policy cover the mortgage if you pass away? An expat life insurance review will give you this information. If your life insurance policy is not denominated in the local currency, it’s essential to be aware of currency fluctuations. Ensure that your policy will still cover those costs even if the currency in your country of residence becomes much stronger.
9. Have You Incurred Any New Debts?
Perhaps a car loan, credit card debt, or other financial commitments? That is another good reason to review your life insurance with an eye to expatriate needs. If you pass away, in some places, your dependents will be liable for those debts.
10. Do Any Benefits Have Exceptions?
Your expat life insurance review should include an intensive reading of the fine print. If there are dangers common in your new home but excluded from your life insurance policy, it’s essential to be aware of this now and make adjustments to one that will provide for your family if you were to pass away.
Life insurance shouldn’t be an afterthought. Contact International Citizens Insurance today. Our experienced and dedicated agents can guide you through an expat life insurance review and ensure that your policy and benefits are the right fit for you.
Protect Your Future Before You Relocate
Moving abroad is an exciting step, but it’s essential to ensure your life insurance policy moves with you. Reviewing your policy before relocation helps ensure your loved ones remain financially protected, no matter where life takes you. Life insurance should not be an afterthought. Contact International Citizens Insurance for expert guidance on reviewing your expat life insurance and finding coverage that fits your needs.
Joe Cronin, President of ICI, is a leading expert in international health, life, and travel insurance. An MBA and founder of multiple global businesses, he helps expatriates and travelers access trusted, comprehensive insurance solutions worldwide.
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