Will moving to a different state affect my life insurance policy?
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Asked August 19, 2013
The premiums you pay for life insurance are affected by many different factors, including your place of residence. Some countries are safer to live in than others, and the expected life span varies by geographic region, even within the United States. How much variation you will face depends both on where you originally purchased the policy as well as where you are moving to.
Within the United States, some regions are safer or provide a statistically longer life. For example, if you are moving from a northern state to Arizona, the statistics would be in your favor because that state is recognized as being more congenial, especially for older residents. And even though you may not think of it that way, a location which is prone to natural events like earthquakes or hurricanes is riskier to live in and will therefore cost more for coverage.
If you are moving to a country with poor medical standards, at war, or having other socio-economic concerns, your rates will be higher if you can even get coverage at all. We tend to take hygiene for granted in this country, but there are many places overseas where fresh water is hard to get and medical care is questionable at best. Since life insurance is based on your expected lifespan, countries with health or medical concerns could cause a large increase in your premiums.
Your best option is to contact your insurance company and give them specific information on where you intend to move to. The company can then give you an answer based on their actuarial tables. There is no certainty that your rates will change at all, and you may end up with a lower cost than you had before.
Answered August 19, 2013 by Anonymous