Retiring Abroad? You Might Invalidate Your Life Insurance

Maldives Resort (Wikipedia)
Maldives Resort (Wikipedia)

While reviewing life insurance policies, I noticed that some have a clause which would make it impossible for your family (or other named beneficiaries) to collect your life insurance benefits if you are residing outside of the United States when you pass away.

In the past decade, the number of Americans retiring in sunny locations abroad has increased, and is expected to multiply further as baby-boomers retire. According to the Wharton (business) school at University of Pennsylvania, in 2012 there were 350,000 Americans collecting their social security retirement benefits abroad. The travel industry estimates that an additional 3.3 million baby-boomers are planning to retire abroad.

If you are planning to retire abroad, check your life insurance policy for a residency requirement.

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