Can you buy life insurance on your father if he lives in another country?
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Asked March 8, 2011
Most life insurance is not based on a particular place, but rather follows the insured person wherever they may go. There are even very good reasons for considering life insurance more important when a person is living outside of the United States, such living in a country with an unusually high crime rate, or countries that are openly antagonistic towards US citizens. At the most basic level, a small life insurance policy will make it possible to bring the deceased back hoe for a proper burial should the unthinkable happen.
Higher risk countries will incur the highest premiums costs on a life insurance company. Because the risk of death is higher, the insurance company charges a higher premium to recoup some of the costs and mitigate the risks to the company. As an example, if your father lived in Mexico, it would cost more than twice as much to purchase a life insurance policy for him than if he lived in a more peaceful country such as Canada.
Consider the reasons for taking out the insurance policy. If your father is in a high risk country but will be coming back to the States in a few years, it makes more sense to purchase travel insurance or some other form of term insurance than to buy a whole life policy with inflated premiums. Once they are back in the country, or have moved to a place with lower personal risks, a whole life policy can be purchased. In some countries life insurance will not be available except through high risk insurance companies, because the threat to human life is so likely that conventional insurance won't take the risks.
Answered March 8, 2011 by Anonymous