Life Cover - US based policy

Deb-Northants

Hi

Due to cost savings my employer (a US based company) has taken the decision to stop paying the premiums to our UK life insurance company and has added me and two other colleagues on to their US life policy.

Does anyone know of any drawbacks to this? I'm already aware that they wont pay the spouse and dependant compensation to any UK based employees, but are there any other issues to consider?

For information the death benefit would be paid into a Retained Asset Account.

Any advice would be gratefully received.

dogbot

Have a read though the old and new policy conditions.

A better move would be to find yourself a damn good IFA, have a chat to them and ask them to take a look though the policy to find out where you stand. You may need to agree a fee with them for this work but it could be well worth it.

somewhatnew

Yes - definantly speak to an IFA.

A problem could be where the insurance is written. If in the USA then in the event of a claim how does your partner deal with this? Another consideration could be inheritance tax - what are the rules in the USA? Would the IRS want their pound of flesh?

Speak to an IFA. They will be able to give more indepth answers.