3 Things To Know About Buying Life Insurance If You Want To Live Abroad
Written by
Cindy Lamothe
Edited by
Gary Dudak
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Buying life insurance is a monumental move in a person’s life. You’re ultimately setting your finances up so that your loved ones are cared for in the event something happens to you.
It’s one of the most important decisions you’ll ever make, but if you live overseas or plan to eventually, it can be tricky knowing how to go about it.
“While difficult, Americans abroad have life insurance options,” said Griff E. Harris, certified insurance counselor, president and CEO of Griffith E Harris Insurance Services. “Find expatriate-focused companies, compare carefully, and be transparent. The right policy and provider offer peace of mind, even far from home.”
Below are the top three things to know about buying life insurance if you live abroad.
Buy It Before Moving
“I always recommend purchasing a policy before moving overseas,” said Harris. As once abroad, insurers see applicants as higher risk and often limit coverage or raise premiums.
Robert Macoviak, president of Oyer Macoviak and Associates, agreed that buying in advance locks in the best rates and terms. “I have helped many Americans living abroad find life insurance solutions,” he said. “While it can be challenging, with some research you can find viable options.”
He continued, “I once had a client moving to China for work who was worried he couldn’t get life insurance. By finding a provider focused on expats, we secured a 20-year term life policy before his move. The medical exam and questionnaire were completed stateside, and the coverage gave him peace of mind in his new home.”
Compare Companies Carefully
David L. Blain, CFA and chief executive officer at BlueSky Wealth Advisors, explained that for those already abroad, some companies offer coverage if you have a U.S. mailing address and bank account. “In either case, disclose your circumstances to avoid claim issues later,” he said.
Macoviak equally advised comparing companies carefully. “One may view your location as higher risk while another specializes in expatriate clients.”
He said every situation is different, so check all options. “With time and effort, you can find life insurance abroad. The key is starting your search as early as possible and being transparent with providers about your circumstances.”
Blain agreed. “While challenging, Americans abroad have life insurance options. Find expatriate-focused companies, compare carefully, and be transparent. My firm has helped many clients in this position gain the coverage they need.”
Opt for Term Life Insurance
“As a fee-based life insurance consulting practice, I have assisted many Americans living abroad in finding viable life insurance solutions,” said Bill Boersma, founder, owner and president of OC Consulting Group. “Term life insurance is typically the most feasible choice as coverage amounts and term lengths can be custom to specific needs with fewer medical requirements.”
Other experts agreed, noting that for Americans living abroad, term life insurance is typically the best option.
“Permanent policies usually require medical exams which can be challenging to complete internationally. Term life only needs a health questionnaire and offers flexibility in coverage and terms,” said Harris.
Macoviak observed the same. “Term life insurance is typically the most feasible choice. The coverage amounts and term lengths can be custom to your needs without strict medical requirements.”
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