Will my US/Canada Life Policy Pay?
Monday, July 26 2010 @ 10:19 AM EDT
Contributed by: Kevin Bradley
Confusion may stem from Expats residing in Panama who wish to APPLY for life insurance in the USA. Some US/Canada companies do not wish to issue a NEW policy to foreign residents.
The other major exclusion in the standard life insurance contract is for misrepresentation/false information on the application. If your DOMICILE is the Rep. of Panama and you state that you live in USA/Canada, the policy may not pay for the first 2 years (incontestable period). If you had cancer and failed to disclose this on the application (committed fraud), the death benefit may be denied in the first two years. After this time has passed, the policy becomes “incontestable”. If a USA/Canada life insurance policy is in force and you come to live in Panama after it is issued, the benefits may not be denied.
By the way, health insurance works differently. If you change DOMICILE to the Republic of Panama and maintain a USA P.O. Box or use a friends address, your benefits may be denied. You should check your coverage to verify the consequences of changing residence/DOMICILE from the USA to Panama.
For more information, email firstname.lastname@example.org or call 322-1605.