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I'm planning on moving to a new state next year, but in the meantime I want to get some life insurance to protect my family from any unfortunate tragedy that may befall me along the way.

Looking into it, I notice that all life insurance policies are regulated on a state-by-state basis. So I'm a little concerned that if I buy the life insurance policy now, it'll cover me for a year, but then won't do anything for me for the other 20 years I have it, and that I'll still be on the hook for 19 years of payments.

Will I still be covered by the life insurance I buy in this state if I move to another state?

For reference, I currently live in New York State, and would be planning on moving to Maryland.

  • 4
    What does the insurer say about this? – Lawrence Jul 8 at 23:52
  • I'm almost certain life insurance is not affected at all by moving, even to another country – Fattie Jul 9 at 12:02
  • State regulation of insurance policies is generally regulation of sales of the policy; for the case of home insurance and auto insurance there are, of course, state-specific requirements for all policies sold in that state, such as auto insurance must provide for at least some specified amount of liability coverage etc. But, to the best of my knowledge, there are no state-specific requirements for coverage from life insurance policies except minor stuff like the suicide exemption cannot be for more than n months in NY, and a life insurance policy bought in NY should be valid in MD. – Dilip Sarwate Jul 9 at 14:29
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You are right that insurance in the US is regulated by each state. It is also true that some insurance companies don't sell policies in all states. You frequently see this with property insurance where fires and hurricanes can make it too expensive for a company and they decide to stop selling policies in an area.

Since you know that you will be moving, it would be easy to check if currently the companies you are considering offer policies in both states. I think that the nationally known companies do operate in all states, but you should check.

It is likely that If you move to another state and you are using a national company the insurance company will transfer your policies to another branch office in the new state. With life insurance unless you need to change the duration or the amount of the policy there generally is no need to even talk to an agent after the policy is put in place.

Homeowners and car insurance are linked to where you live. The zip code can make a big difference in the cost and coverage available.

I do know that If you move is out of the United States your life insurance coverage will change and it can depend on what country you are moving to.

So I'm a little concerned that if I buy the life insurance policy now, it'll cover me for a year, but then won't do anything for me for the other 20 years I have it, and that I'll still be on the hook for 19 years of payments.

With life insurance you can cancel it at any time, so even if you move to that one state where they can't insure you, the term of the policy isn't locked in. You find insurance with a new company and cancel the old policy. You should also get a refund for the partial year.

The risk in that case is that with a X year term policy with level premiums, by design you overpay in the early years to underpay in the final years. So If you know that you will be moving in a year or two, and you know they don't offer a policy in the new state, then you might consider a shorter term only 5 or 10 years instead of 20 years.

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  • MP, I'm almost certain that life insurance is not affected whatsoever by moving (even to another country). If that is true, I'm sure you agree it would be inconceivable you would cancel a policy and start a new one, just because of a move – Fattie Jul 9 at 12:03
  • You have to check the contract you signed regarding the policy. Depending on where country a cause of death that is vary rare in the US is more likely in another country so it not being covered could make a difference. – mhoran_psprep Jul 9 at 12:12
  • I couldn't agree more about checking the contract - I'm just checking one! - but I'm 99.999% certain that an inherent quality of life insurance is that it's completely bound regardless of address you move to; the OP seesm to be in the US and that seesm to be certainly the case w/ all US life insurance. For sure - check the contract or phone them! – Fattie Jul 9 at 12:17
  • I would think that life insurance isn't location insurance and it would not matter where you lived. However, I have read that the insurance policy is valid as long as the insurance company is licensed in the state that you move to. So it would make sense to buy from an insurance company licensed in all 50 states. – Bob Baerker Jul 9 at 13:02

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