I have group employer life insurance policy with Prudential through my work that has the right to be converted to whole life without health questionnaire. Here's the catch, I am a Canadian working in Washington State on an H1B. I am having health issues and may have to return to Canada. Is it possible for me to hold a Washington State life insurance policy if I have left the state and return to Canada?
Conversion of life insurance policy to Canada?
- Thread starter ComanDer
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It looks like I found the answer here: https://www.prudential.com/media/managed/BlackBrochure_noFL.pdf. Of course, after searching for days I find this once I post this thread. The section is:
Is the CONVERSION Process the Same If I Live Outside the U.S.?
It is not a requirement that YOU be a U.S. citizen in order to exercise YOUR conversion right under YOUR GROUP LIFE INSURANCE CERTIFICATE. If YOU were an insured employee based in the U.S. with a CONVERSION right, YOU have the right to convert YOUR group life insurance coverage to a CONVERSION POLICY even if YOU relocate to outside of the U.S. (provided the insurance laws in the foreign country in which YOU reside allow YOU to exercise YOUR conversion right). If YOU reside outside the U.S., all premiums for a CONVERSION POLICY must be paid in U.S. dollars and it is required that all banking must be done through a U.S. bank.
Is the CONVERSION Process the Same If I Live Outside the U.S.?
It is not a requirement that YOU be a U.S. citizen in order to exercise YOUR conversion right under YOUR GROUP LIFE INSURANCE CERTIFICATE. If YOU were an insured employee based in the U.S. with a CONVERSION right, YOU have the right to convert YOUR group life insurance coverage to a CONVERSION POLICY even if YOU relocate to outside of the U.S. (provided the insurance laws in the foreign country in which YOU reside allow YOU to exercise YOUR conversion right). If YOU reside outside the U.S., all premiums for a CONVERSION POLICY must be paid in U.S. dollars and it is required that all banking must be done through a U.S. bank.
- 1,405
Yes, that should be no problem. You will have to maintain a U.S. bank account to make the premiums payments. In the event of a death benefit payment, you need to ask if there any tax issues on either side of the border.
- 15,041
There is no US requirement that an individual surrender their policy if leaving the country, whether permanently or temporarily. I tend to doubt Canada would have such a rule, although it is possible.
As the clause you cite states, you will have to keep a US account to pay the premiums with US dollars. Additionally, you should expect tax consequences in at least the US. It has been some time since I looked, but at a certain dollar amount, life insurance becomes taxable when left to a non-US citizen. Here is one link about the topic.
https://jh1.jhlifeinsurance.com/jhl...0VgnVCM1000003e86fa0aRCRD&siteName=JHSalesNet
While over a decade old, here is another article about it as well.
Estate Planning, Life Insurance And The Non-Citizen Spouse | ThinkAdvisor
That does not consider any Canadian tax implications.
As the clause you cite states, you will have to keep a US account to pay the premiums with US dollars. Additionally, you should expect tax consequences in at least the US. It has been some time since I looked, but at a certain dollar amount, life insurance becomes taxable when left to a non-US citizen. Here is one link about the topic.
https://jh1.jhlifeinsurance.com/jhl...0VgnVCM1000003e86fa0aRCRD&siteName=JHSalesNet
While over a decade old, here is another article about it as well.
Estate Planning, Life Insurance And The Non-Citizen Spouse | ThinkAdvisor
That does not consider any Canadian tax implications.
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