by Guest » Tue May 01, 2012 10:24 am
I have got life insurance policies for my wife, son and myself. However, I'll need to go abroad for job related purposes, and intend to take my family with me. Will the insurers deny coverage? Will I need to cancel all of our policies? What is going to happen to the cash value, which I have paid for this long?
Posted: Wed May 02, 2012 12:02 pm Post Subject:
Will the insurers deny coverage? Will I need to cancel all of our policies? What is going to happen to the cash value, which I have paid for this long?
Unless you are planning to stop paying premiums for the policies you have, everything will remain intact. You don't have to cancel your life insurance nor can it be terminated by the insurance company because you are going to be out of the U.S. But there can be exclusions in the policies for death due to terrorism, which happens with some regularity in other parts of the world, and if such an exclusion is in your policies, then you may be able to have the policies amended to cover you and your family for an extra fee. Read your policy to find out if this is true (only a few policies have such exclusions).
If your bank account will be closed or is changing, you will need to make arrangements to change your automatic payments to the new account or change to "direct billing" where the insurance company sends you a statement every month, three months (quarterly), six months (semiannual), or year (annual). Simply call the insurance company's toll-free phone number to make the necessary change.
If you decide to cancel your insurance, you would be entitled to receive the accumulated cash value, minus any surrender charge listed in the policy. If you simply stop paying premiums, your cash value would probably be consumed by the insurance company to keep your policies in force as long as there is any money left in the cash accumulation.
My recommendation would be to do whatever is necessary to keep your policies in force. Do not cancel them or let them lapse due to non-payment of premium.
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