While there is a myriad of choices available for purchasing life insurance in the United States for U.S. citizens who reside here, the rules are not quite as clear for those U.S. citizens who are living abroad.
The same is true for those who are not U.S. citizens but reside in the country on a part-time basis.
In many cases, the policy that is in force in the United States may not provide you with the same protections that you have here at home if you are living outside of the U.S.
Unfortunately, many people find this out when it is too late.
Life Insurance While Living Outside the U.S.
When an individual leaves the United States, it is valuable to have adequate knowledge about what their current life insurance policy will – and will not – cover.
So, if you are currently living abroad – or if you are planning to leave the United States any time soon – checking your current life insurance protection will be an essential priority.
And, if your current coverage will not be adequate during your time away, it is important to take the necessary steps to put new life insurance coverage in place.
US Citizens Living Abroad
The good news is that those who are U.S. citizens living abroad (or those who will be leaving shortly), there are many options for protecting your loved ones with insurance coverage.
There are plenty of policy options that will provide you with insurance coverage, and other types of coverage too, such as:
- Accidental death and dismemberment
- International health insurance
- Property insurance
Just like coverage when living in the U.S., you will want to ensure that those who you love and care about are protected in case of the unthinkable.
Life insurance proceeds should be enough to pay for any final expenses, as well as any debts that would cause financial hardship such as a mortgage balance, high credit card balances, or other types of loans.
In addition, you may also need to insure for the loss of income. This is especially the case if you are the sole income earner.
Should your income be lost, consider how your loved ones would survive financially – and how much income would need to be replaced going forward.
Having the right amount of life insurance proceeds to replace your income can help your family to go on without the need to drastically change their lifestyle.
This can help tremendously – during what is an already emotional and stressful time for them.
Life Insurance for Non U.S. Residents
There are also many individuals living in the U.S. who are non-U.S. residents who may also have a need for life insurance.
Non-U.S. residents are typically defined as those who do not have a full-time United States residence, or as an individual who resides outside of the United States for three months or more on an annual basis.
(It’s important to know that a person’s citizenship is not a factor in determining whether or not an individual is a non-U.S. resident).
The good news is that those who are from most other countries are able to purchase life insurance in the United States.
In order to obtain life insurance, there are certain requirements that must be completed.
These include the following:
- The life insurance policy application must be completed in the United States.
- It is also required that the applicant for coverage must take a medical examination in the United States. Typically, the applicant’s medical records can be obtained from the person’s home country, however, if they can be brought to the U.S. by the applicant himself or herself, that is also helpful. to the life insurance underwriters.
- The applicant must also physically be in the United States when the life insurance policy is approved and delivered. If the policy is mailed to the applicant / insured, the policy must be mailed to an address that is in the United States – and that address must be in the same state where the individual applied for the coverage. Likewise, even if the policy is mailed (as versus delivered in person), the individual must still be in the United States at the time that the policy is mailed to him or to her.
- The applicant/insured must have some type of ties to the United States. This may include having some family in the country or having a business in the U.S. However, an individual cannot simply purchase life insurance in the U.S. because they are in the country on vacation.
In addition, many life insurance companies will also require that an applicant purchase a minimum amount of coverage.
This amount is typically $250,000. In most instances, all policy types are available to the individual, including:
This coverage can be kept for a certain period of time – such as just a few years – or, in the case of permanent coverage like whole or universal life, it can be kept indefinitely, provided that the premiums are paid.
In addition, for those who choose to go with permanent life insurance, you’ll have the opportunity to get death benefit protection, along with a build-up in cash value.
This money can grow over time, and it can be borrowed or withdrawn for any need that you see fit. It’s important to know, though, that any cash value balance unpaid at the time of an insured’s death will be deducted from proceeds of the death benefit that are paid to the policy’s beneficiary.
Therefore, it is important to keep that in mind – especially if the named beneficiary is counting on a certain amount of policy proceeds for paying off debts, final expenses, or other financial obligations.
Best Life Insurance Quotes for Foreign Nationals
When searching for the best life insurance premium quotes on coverage, it is usually best to work with an insurance business that has can work with more than just one insurance company.
Then, you can directly compare – showing no bias – the policies, features, and quotes from numerous insurers. You will also be able to address those more specific needs, such as seeking life insurance for diabetics or finding the best life insurance coverage for a veteran, with ease by working with us.
If you’re ready to get going with the comparing process, we can help. We work with top-ranked insurance carriers in the marketplace today and can get you the info that you need speedily, easily, and very conveniently, directly from your home desktop, and not needing to meet a life insurance agent in person.
When you’re ready to start comparing, all you have to do is fill out the form on this page.