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Will Moving to a Different State Affect My Life Insurance Policy?
Life changes and the good news is your life insurance policy, including your term life insurance and whole life insurance, can change with it. When it comes to managing your life insurance policy, there are many things you need to do when your life does change, such as moving or you get divorced or married. Here is a look at some of the most important things to talk to your life insurance company about during the time you have a policy with them.
Moving Life Insurance – When Does It Matter?
Moving with life insurance is not necessarily a complication. If you take out a life insurance policy, you will provide the agent with information about where you live and where your beneficiaries – the person to receive the death benefit – lives. However, there are some situations where you need to let the agent know that you have moved. First, you want them to be able to find you and your beneficiary, so providing your new address is always important. Moving does not necessarily mean your premiums or your coverage amount will change, though.
If you have life insurance through your employer and you are switching employers, then you may need to change life insurance companies. This can be done in house with your human resource manager. In other cases, you may elect to maintain your current life insurance policy with your older employer. This may make it less complex and costly to make a change. You also need to let your life insurance company know if you are planning on moving out of the country. This may impact your rates and your coverage availability.
What Factors to Tell Your Agent – Life insurance Beneficiary Changes
Another key time to talk to your life insurance agent is when you need to change your beneficiary. Remember, this is the person who will receive funds if you die during the time the policy is in place. You can change your beneficiary at any time. You should update your policy if your beneficiary dies or is no longer the person you desire to receive those funds. For example, if you get divorced, you may want to make a change. Also, if you list your children as beneficiaries, be sure that they also are updated such as if you have another child.
Will Your Life Insurance Payout Change Based on Where You Live?
The life insurance payout received does not change most of the time. In fact, you agree to the terms of the life insurance payout at the time you select the policy. As long as you maintain all requirements for that policy, such as making payments on time, you should be able to keep your policy in place with no changes to it. Keep in mind that life insurance payouts are the amount a beneficiary receives. If your policy has a cash value, that can change from time to time as the value of the policy grows.
Can You Change Your Insurance Company or the Type of Life Insurance You Have?
You can change life insurance companies. To do so, though, you need to cancel one policy and open another. This can be limitedly beneficial in some situations depending on the type of policy you select. You can also maintain more than one policy if you would rather keep both in place. If you need to change life insurance companies, contact your agent and talk about your needs and goals. Most often, there are solutions available to help you.
How Does Life Insurance Work When You Die?
When you die, someone needs to notify your life insurance company about the death. If you have an attorney managing your estate, they can handle this. In all cases, you want to be sure the life insurance company is able to send the beneficiary the funds from the policy. This is not something that can be altered after death and, once they do so, those funds are not a part of your estate nor are they taxable funds. That means your beneficiary receives exactly what you desire.
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