17 May Life insurance and moving overseas

Q. I’m moving overseas — permanently — and I’m wondering if this will have any impact on my life insurance policies?
— Leavin’ on a jet plane

A. You need to take a look at your life insurance contracts.

Most life insurance policies are issued as “non-cancelable” and “guaranteed renewable” — provided premiums are paid. This means the insurance company can’t drop you so they assume all future risks such as a decline in health, changing to a hazardous occupation or moving overseas, said Ed Gaelick, a Chartered Life Underwriter and Chartered Financial Consultant with PSI Consultants in Glen Rock

He said you’ll probably be fine, but you should still read your policy — which is a contract — to see if there is any language specific to moving overseas.

Gaelick also recommends you call the insurance company to confirm your move will not cause any problems. Also try to get something in writing from them to verify your coverage will not be adversely affected by the move.

You’ll need to continue paying your premiums on time, so Gaelick recommends you make arrangements to change your address ahead of the move.

“Have a backup plan, where someone else is notified in the event premiums are late,” he said. “If you die in another country with a different language, likely a death certificate will need to be translated before a claim is filed domestically.”

That shouldn’t present a problem, but you should be aware that the claim may take longer to process.

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This post was first published in May 2016.