Is it possible for a national of Barbados, living in Barbados to buy life insurance from a United States based insurance company?

UPDATED: Oct 9, 2012

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UPDATED: Oct 9, 2012Fact Checked

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Asked October 9, 2012

1 Answer

Some United States based insurance companies may be licensed to sell life insurance in Barbados, but it is far more likely that you can purchase a policy in Barbados that protects you here in the States. This process is not very common in the United States, but countries such as Canada and the United Kingdom are taking interest in purchasing policies overseas. Because the Barbados economy works differently than in United States, Barbados gives investor the opportunity to invest in things that are not available in policies bought in the United States.

To find out whether a specific company is licensed to sell insurance in Barbados, contact the insurance company directly and ask them. Life insurance is not as carefully regulated as home or health coverage, but companies must still be licensed to do business in Barbados before they can start selling life insurance policies.

Barbados life insurance policies are exempt from seizure or collections. Life insurance policies sold in Barbados provide the same protections against taxation state and national governments. This will prevent the government from tapping into the policy while you are alive, eliminating most of the taxation on the policy. This exemption make Barbados a safe place to buy and sell insurance, and is used as a bargaining tool by the Barbados government to attract new businesses to the island.

Considering the many benefits of purchasing life insurance in Barbados, it might be cost-effective for a Barbados national living in Barbados to buy life insurance from some other country. It is not so much a question of what is allowed or disallowed; it is a matter of which location will provide you with the best results in the long term, and U.S. markets may not always be able to compete with the lower rates.

Answered October 9, 2012 by Anonymous

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