International Life Insurance vs. Domestic Plans – Understand the Difference
Many U.S. expats dream of living abroad and find it to be a dream come true. Perhaps you’re retiring at your favorite destination or working abroad. You may have a spouse or children joining you for this adventure. You're probably drawing funds or a salary from accounts in the U.S. These things can complicate your finances. They also make you and your family more vulnerable if something goes wrong while you live overseas.
You can protect your lifestyle and options overseas with international life insurance for U.S. citizens.
Many U.S. expats dream of living abroad and find it to be a dream come true. Perhaps you’re retiring at your favorite destination or working abroad. You may have a spouse or children joining you for this adventure. You're probably drawing funds or a salary from accounts in the U.S. These things can complicate your finances. They also make you and your family more vulnerable if something goes wrong while you live overseas.
You can protect your lifestyle and options overseas with international life insurance for U.S. citizens.
Why American Expats Should Consider an International Life Policy
People move to a new country hoping for the best. But sometimes, the worst can happen, such as an accident that leads to a health crisis or even death. Would your spouse or family be okay financially if that happened to you? For example, could your spouse afford to stay in your home or return to the U.S.? Would your mortgage be covered? What about some support for your surviving family or caregivers? If these challenges arise, international life insurance for U.S. citizens provides protection for you and your loved ones.
Quote Request: International Life Insurance
- Comprehensive coverage across multiple countries, with plans offered by our leading insurers.
- Choose from flexible options—including term life, whole life, and renewable life insurance.
- Request a quote to receive personalized advice from licensed agents specializing in global life insurance.
Protect Your Family and Estate While Abroad with Life Insurance Settlements
When you pass away while covered by a life insurance policy, your insurer issues a lump-sum payment to a person you choose. This payment is often called a death benefit, and the person you choose to receive it is your beneficiary.
The payment can help your beneficiaries with money for funeral and legal costs after your death. These costs are often higher around an international death, especially if you want your remains returned to your home country.
By designating your estate or a trust as the beneficiary of your life insurance policy while also having a will, you ensure that your estate will manage and execute your desired payout according to your wishes.
Get Help for Accidents or Terminal Illnesses with Life Insurance Outside the US
International life insurance may also help you with a death benefit paid to you if you become permanently disabled or if you are diagnosed with a terminal illness. For this coverage, you can pay for an accident benefit or income protection as part of your plan.
Examples of being permanently disabled include injuries that you don’t recover from, like losing a limb or being blinded. If this happens, the death benefit you are eligible for is paid directly to you. Even if you have medical insurance, the funds from a death benefit can let you make your home accessible, get support services, or recover physically and mentally.
If your plan covers a confirmed terminal illness diagnosis, the insurer will pay you or your preferred beneficiary the death benefit. The most common terminal illness diagnosis is cancer. This benefit can fund more support, extra care, and terminal planning.
Quote Request: International Life Insurance
- Comprehensive coverage across multiple countries, with plans offered by our leading insurers.
- Choose from flexible options—including term life, whole life, and renewable life insurance.
- Request a quote to receive personalized advice from licensed agents specializing in global life insurance.
What’s the Difference Between US and International Life Insurance?
As a rule, a domestic life insurance plan does not cover you if you live permanently outside the United States. You can check with your domestic life insurer before you move. But your domestic life insurer may not offer an international option for you, or you may not like its limitations.
International life insurance for U.S. citizens protects you globally as you live overseas. Plans of this type may also be called global or cross-border life insurance.
Important Limitations of Domestic Life Insurance for Americans
Why is global life insurance for U.S. citizens important? The limitations on domestic plans for life insurance companies may reduce or remove benefits for people living outside the U.S.
Some domestic life insurance plans for U.S. residents will cover a death outside the United States — if that death occurs during short-term travel. However, if you live outside the U.S. or travel long-term, you may violate the terms of a domestic life insurance policy.
If you move overseas without telling your domestic life insurer and then pass away there, your claim might be contested and denied due to material misrepresentation. That means you did not provide your insurer with accurate information about your residence and related risks. Your insurer would not be obliged to pay your death benefits.
Most domestic life insurance plans allow you to have beneficiaries outside the U.S., but it is not standard. They usually ask for extra information or steps to confirm a foreign beneficiary. They may prefer to limit your foreign beneficiaries to your immediate family. Payouts from domestic U.S. plans to foreign beneficiaries may also be slow, complicated, and only available in U.S. dollars. If the insurer is suspicious of the beneficiary and their connection to you, the insurer may contest the benefit payout.
International Life Insurance Provides Global Coverage
International life insurance provides you and your beneficiaries with secure global coverage. Your beneficiaries won’t have to deal with the delays, second-guessing, or risks associated with covering an international life using a US domestic plan.
Another advantage of international life insurance is greater freedom in choosing beneficiaries. With a joint life policy, your spouse is automatically your beneficiary. However, you may both want to share the death benefit with other family members. Living internationally often runs in families! So, an international plan allows you to live overseas and support your family and care network where they are. You can be confident that your life insurance will coordinate and pay out to them wherever they are.
Yes, you have the flexibility to select the currency in which you pay your policy premiums. Typically, expats opt for payment in either US dollars (USD), British pounds (GBP), or Euros (EUR). The currency you select for premium payments will also be the currency of your death benefit.
If you frequently travel for work or reside overseas for extended periods, safeguard yourself with a global life insurance plan. Such a plan ensures comprehensive coverage while accommodating your nomadic lifestyle, allowing you to move as often as necessary. Additionally, these plans extend coverage to you and your spouse, even if you reside in different countries, either temporarily or permanently. Whether you spend more time abroad than your spouse or both frequently change locations, a global life insurance plan offers peace of mind.
If you have a family member or employee who is a U.S. citizen based overseas, you can buy international life insurance for them. In this case, you are the policyholder, and they will be the life insured. If you are purchasing a policy like this, consider international term life insurance for Americans. Policyholders can choose how long the insured is covered, for example, five years.
Quote Request: International Life Insurance
- Comprehensive coverage across multiple countries, with plans offered by our leading insurers.
- Choose from flexible options—including term life, whole life, and renewable life insurance.
- Request a quote to receive personalized advice from licensed agents specializing in global life insurance.
Secure Yourself Further with International Income Protection Insurance
Living abroad brings unpredictable circumstances, where unforeseen events may render you unable to work. Depending on the social security system of your new country and your entitlement to sick pay as per your contract, you may need more income sustainability.
The William Russell Income Protection Plan offers a replacement income of up to 80% of your salary if you become ill or injured and unable to earn money while living abroad. The plan provides proper global coverage for expats who frequently travel internationally. You can apply for this if you are under 60 years old and your occupation is office-based.
William Russell Life Insurance
- Cover when living & working abroad.
- Insure your life up to $2m and safeguard your family’s financial future.
- Insureds can include expat income protection insurance in their policy or purchase as a standalone policy.
How to Apply For International Life Insurance
International life insurance for U.S. expats can provide substantial death benefits. Applicants can elect a sum insured of up to $6.5 million. Your insurer will ask you to provide a thorough application to support the benefits requested.
As an expat, if you’ve applied for a visa, you have what you need for an international life insurance application. The application will require much of the information you've provided for a residency visa. For example, the insurer will ask for a photocopy of your passport, medical exams, and proof of residence for your new country. You'll answer some questions about your lifestyle and may need to provide some past medical records to support your application. Some insurers may ask you for a quick interview for security and clarity. After you submit your application, it takes some time to receive your coverage. Your insurance broker will let you know how soon you’ll be covered.
Our partner insurers, such as, Unisure and William Russell, also provide health and life coverage to expat groups. If you are interested in a group plan, request a free quote!
You can apply for international life insurance while you are still in the U.S. Insurance brokers recommend applying for these policies 90 days before departure. The plan’s coverage will begin when the covered person leaves the U.S. When you do this, coverage can even start when your plane leaves U.S. territory.
It's okay to apply for international life insurance as a U.S. expat while settling into a new life overseas. You can sort out your residence location after you apply; changes within a country won’t affect your international plan application. Stay in touch with your insurer and inform them about any changes in address and visa status in your new country.
Unisure Life Insurance
- Fairly priced and supported by first-class service.
- Coverage is guaranteed for the entire policy term.
- Insure your life up to $6.5m.
- U.S. coverage valid when issued prior to entry
International Insurance Plans Have Some Limits
Understanding the limits of international life insurance means knowing what to expect. A global life plan often has an age range for eligibility. Applicants typically must fall between 18 and 69 years of age to apply. Accidental death coverage may cease to apply if you are 70 years of age or older.
Life insurers prefer to cover individuals who pose a reasonable risk to insure. Maintaining good health, making positive lifestyle choices, and avoiding dangerous occupations or hobbies are helpful.
For international coverage, life insurers may deem some countries, like North Korea and Venezuela, too unstable to be a reasonable risk for resident expats. Ask your insurance broker if the countries you plan to live or visit are covered.
What if you move back to the U.S. within your coverage period for international life insurance? If you move back to live in the U.S. once more, some plans, like Unisure, will still cover you. Other plans, like William Russell, will be terminated.
International life insurance plans may not allow you to have a contingent beneficiary. A contingent beneficiary is a backup or entity that receives benefits if your primary beneficiaries are unavailable or refuse the benefit funds. However, global plans allow you to name multiple beneficiaries to split the death benefit.
Insure Your International Lifestyle Today
International life insurance for U.S. citizens supports and protects you, your household, and your overseas lifestyle. You may be in a new country to make the most of your budget or because you have the resources to be anywhere you desire. Either way, the benefits of international life insurance can support you during a crisis.
Ready for the next steps? Request a quote to understand how much you should insure your life for and how long your policy should last.
Quote Request: International Life Insurance
- Comprehensive coverage across multiple countries, with plans offered by our leading insurers.
- Choose from flexible options—including term life, whole life, and renewable life insurance.
- Request a quote to receive personalized advice from licensed agents specializing in global life insurance.
