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Topic: US Life Insurance Policy Q  (Read 801 times)

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US Life Insurance Policy Q
« on: March 07, 2011, 06:08:21 AM »
Hi all, I tried to do some research and I couldn't find any answers (maybe I'm not using the right search terminology). My OH (dual USC/BC) and I (USC) are relocating to the UK later this year. We both have life insurance policies here in the US. His is $500k and mine is $300k. Here are my questions:

1) Is it likely/probable that the insurance companies will terminate the policies if they find out we have relocated outside the US? I know that we were questioned about what countries we have traveled to the past (I guess to see if go to dangerous places), but I wasn't sure if they had the right to flat out cancel policies if we physically moved outside the country. I didn't want to ask them directly because I'm afraid of throwing up any red flags. I'd hate to lose my policy because I have a pre-existing condition, and it is 100% likely I'll never be approved for another life ins. policy in the US ever again. I assume I'd have the same problem getting a UK policy so this is really important for me to figure out.  :-\\\\

2) What are the tax implications on US policies? If say, heaven forbid, my OH died, would I be taxed in the UK on his policy payout? Theoretically, how would they even know I benefited from the policy if all monies were kept in a US bank?

What search terms could I use so I could find some answers? Is there a particular type of lawyer we should consult with (here in the US or the UK) to understand the implications?

TIA!


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Re: US Life Insurance Policy Q
« Reply #1 on: March 07, 2011, 06:19:08 AM »
Frightening. I literally just printed out the form to convert my life insurance policy over (from employer paying to me paying) and contemplated the same thing about 20 minutes ago.

Thanks for posting it. And thanks to whoever knows the answer.
Most people are about as happy as they make up their minds to be.  A. Lincoln

09/09: Met in San Diego
09/09-04/11: 9 trips, 1000 hours of Skype, a billion IMs
04/11-08/11: Successfully lived under the same roof in the UK
08/11: Engaged
02/11/12: Wedding in San Diego
03/12/12: Submitted online application
03/16/12: Biometrics appointment, documents sent
3/28/12: Spousal visa issued!
4/24/12: Moved to UK
6/24/14: Passed Life in the UK test
7/3/14: Submitted SET (M) in person via Premium Service
7/7/14: BRP received via courrier! I'


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Re: US Life Insurance Policy Q
« Reply #2 on: March 07, 2011, 12:21:17 PM »
Part 1 - I would speak to your provider.
I know in the UK (and w/ Aviva) that policies would be honoured in a move to another country if:
A) you pay your premiums from a UK bank acct and B) do not move to an area of internal conflict (as defined by the UN). Also, when moving, make sure your address is up to date, so if a payment bounces you can be notified by post. (this is helpful to those with Aviva Life policies and looking to move back to the US) With Aviva, you miss one payment and the policy is cancelled.

I cant advise on Part 2 as I wasn't qualified to give advise, only facts.


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