Term Life Insurance Articles
How Moving To Another State Can Affect An Existing Life Insurance Policy
2010-09-26
If you are moving to a different state, it might affect your existing life insurance policy. Since different states have different state laws, this could also have an impact on your existing life insurance policy. Before moving to a different state, it might be a good idea to contact your insurance company and find out if the move will affect your existing life insurance policy. If it does affect, you must figure out what your future course of action should be.
Since life insurance is a state regulated product, an insurance company can only sell its products within a state and this must be approved by the state regulator. Each individual state has the right and the authority to set its own insurance standards and regulations. Each individual state also requires that the insurance companies follow those standards to be given permission to do business in the state. When you purchase a life insurance policy, it will generally be controlled by the laws of the state where the application was signed and not by where the insurance agent or carrier is based.
Insurance policies can differ from state to state. There are many insurance policies and products that are available in some states, but are not available in others. The benefits offered by the same insurance company can also differ from state to state.
In some cases, federal gift taxes and state inheritance taxes may also apply to life insurance policies. It is important that you speak to your insurance company or tax adviser about income tax consequences surrounding your life insurance policy when you move to a different state.
Another way of checking if moving to another state has any effect on your existing life insurance policy is by using the internet. There are many websites which offer various life insurance related advice. You can visit forums and websites that are meant specifically for life insurance related queries and perform searches and ask questions. You can also visit the official website of your insurance company and look for answers.
If you are planning on moving to different states, it is important that you speak to your insurance company about the effect it might have on your life insurance policy. Even though it may not have too much of an impact, state regulations do come into play mostly at the time of an insurance claim. Also, things like free look provision could vary from state to state. Clearing your doubts about your life insurance policy will ensure that you do not have any issues with the policy after you have moved to a new state.
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If you are moving to a different state, it might affect your existing life insurance policy. Since different states have different state laws, this could also have an impact on your existing life insurance policy. Before moving to a different state, it might be a good idea to contact your insurance company and find out if the move will affect your existing life insurance policy. If it does affect, you must figure out what your future course of action should be.
Since life insurance is a state regulated product, an insurance company can only sell its products within a state and this must be approved by the state regulator. Each individual state has the right and the authority to set its own insurance standards and regulations. Each individual state also requires that the insurance companies follow those standards to be given permission to do business in the state. When you purchase a life insurance policy, it will generally be controlled by the laws of the state where the application was signed and not by where the insurance agent or carrier is based.
Insurance policies can differ from state to state. There are many insurance policies and products that are available in some states, but are not available in others. The benefits offered by the same insurance company can also differ from state to state.
In some cases, federal gift taxes and state inheritance taxes may also apply to life insurance policies. It is important that you speak to your insurance company or tax adviser about income tax consequences surrounding your life insurance policy when you move to a different state.
Another way of checking if moving to another state has any effect on your existing life insurance policy is by using the internet. There are many websites which offer various life insurance related advice. You can visit forums and websites that are meant specifically for life insurance related queries and perform searches and ask questions. You can also visit the official website of your insurance company and look for answers.
If you are planning on moving to different states, it is important that you speak to your insurance company about the effect it might have on your life insurance policy. Even though it may not have too much of an impact, state regulations do come into play mostly at the time of an insurance claim. Also, things like free look provision could vary from state to state. Clearing your doubts about your life insurance policy will ensure that you do not have any issues with the policy after you have moved to a new state.
