Life insurance is a way of securing the financial well-being of your loved ones, in case you’re no longer around. Due to many circumstances, it may happen that a policy you’ve chosen no longer works for you. However, it’s important to know that it’s possible to alter your life insurance policy when you move abroad. Our experts at shipping and logistics companies will tell you more details on the topic in the text below.
Why should you alter your life insurance policy when you move?
If you’re moving, chances are you have a to-do list as long as your arm. Booking your relocation services, packing, the logistics of your business transfer, canceling utilities, and so on. But have you thought about an update on your life insurance policy? This is a mandatory step because your insurer factors in the place you live in, as well as your age and health condition. Omittance to notify the insurer on any of these will result in rendering your policy null and void. Hence, is of utmost importance to alter your life insurance policy when you move, to prevent the invalidation of your coverage. So, let’s look into some useful tips, on how can you do that.
- Factors that will affect your cover
- Policy adjustment vs. new coverage
- Change of jurisdiction and laws of succession
What considerations will affect your insurer?
What makes a life insurance policy so complicated, is that it takes into account your unique, individual circumstances. There could be slight variations in the level of complexities, depending on whether you have a term or whole life insurance. Either way, logistics companies in Middle East recommend you talk to your insurer, and ask them to check your policy. This is the best way to clarify the terms. Insurers will consider the following:
- Where are you going? If you plan to move to a high-risk country, where for instance there is certain exposure to diseases or armed conflicts, your insurer won’t be happy to continue your policy. In this case, you’ll most definitely have to significantly alter your life insurance policy when you move.
- What are you going to be doing? Your cover has detailed specifications on the events in which your life insurance applies. Hence, talk to your provider, as some of them won’t cover you in the event of scuba diving, or skiing for example.
- For how long will you be abroad? Full changes to your life insurance policy will certainly be applicable if you are moving for more than 6 months.
These are the main factors that your insurer will consider when you want to update your life insurance policy in the event of relocation. As your individual circumstances play a major role in how your policy is set up, we strongly advise you to talk to your broker with this in mind and obtain accurate information.
Alter your life insurance policy when you move or purchase a new one?
As we mentioned above, your life insurance policy is complex, and there are several factors that will determine if you’ll be able to extend it abroad. Before you book your packing services make a point to discuss the finer detail with your insurer. It’s quite possible that you’ll have to purchase a new policy altogether. This will have to include any mortgage fees, as well as the repatriation of a spouse or other family members from abroad.
Change of domicile and governing laws
Your moving abroad comes with changes in the laws of succession. Depending on where are you moving to, these might be different. Certain laws can affect the amount payable on property inheritance taxes. Hence, modify your life insurance policy when you move accordingly. It’s best if you take the help of a professional financial advisor at your new place, for a better understanding of those laws.
Finally, these are some useful tips that will come in handy if you need to alter your life insurance policy when you move. Take your lead from them, and you’ll be on the right track. Good luck and stay safe.