Life insurance is essential, even if you don’t have kids. If you’re married or have a significant other, your life insurance policy can pay for your funeral expenses and assist your loved one left behind with daily expenses. In addition, the policy payout can help replace a portion of the income you would have made over several decades if you had lived. While you may know life insurance is essential, you may wonder if it’s worthwhile if you don’t plan on living in the United States in the future. Should you still buy life insurance before migrating to another country?
Get Life Insurance in the United States
If you don’t have life insurance yet, get it while you’re still in the United States. Buying a policy while you live in the U.S. is a simple process. However, buying life insurance from the U.S. when you’re overseas is more difficult because most insurance companies require you to have a physical and sign the policy in the United States.
Check with Your Insurance Provider
Once your life insurance policy is established, check with your insurer to see if the policy will still cover you if you live in another country.
What Affects Whether Your Policy Remains Valid
Whether you should buy life insurance before migrating to another country depends on several factors.
What Country Are You Migrating To?
Your insurer may allow you to keep your policy in place if you’re moving to a safe location. However, if you’re moving to an area with increased violence or civil unrest, your chance of death is higher. As a result, your insurer may no longer cover you if you live in a country with a higher risk of death than when you initially signed up for your policy.
Will You Stay Permanently?
You may plan to migrate to another country permanently, but life has a way of working out differently. If you already have a life insurance policy in the United States, you may want to keep it for a few years, even if it doesn’t pay out if you die in another country.
Why maintain the policy? If you decide to move back to the United States after three years, you still have the life insurance policy at a rate you purchased years ago when you were younger and healthier. If you move back to the United States and need to establish life insurance again, you will likely pay more for the policy than you did when you were younger and, presumably, healthier.
Final Thoughts
Life insurance is necessary, but you must consider several factors when determining if you should buy life insurance before migrating to another country. Ultimately, the best step is to ask your insurer if the company covers clients who move to the country you want to relocate to. The insurance company may also offer policies specific to those who travel or live abroad for a portion of their lives.
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Melissa Batai
Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her reading a good book, cooking, or traveling. She resides in New York where she loves the natural beauty of the area.
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