'Global Citizens' Scrambling For Life Coverage After 9/11
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As the war against terror grows from the Middle East to the Philippines, the need for death benefit coverage is on the rise for U.S. resident aliens and nonresident aliens.
These "global citizens"–individuals who work and reside in multiple countries throughout the year–suddenly find themselves faced with the real threat of danger to their safety and the safety of their families.
However, at the same time the need for life insurance coverage is becoming a priority, reinsurers are becoming more cautious about the risks they will accept.
Already stinging from the liability associated with the World Trade Center attacks, reinsurers are reassessing their risk profiles for insureds on a country-by-country basis. Mergers in the reinsurance market already had the offshore and domestic alien marketplace stepping up underwriting requirements and shifting risk from the reinsurer to the carrier.
Residents of other countries, who used to find U.S. life coverage a commonplace transaction are today finding fewer U.S. carriers willing to step up to the plate and issue contracts to nonresident and resident aliens
All is not entirely hopeless, however, for those agent advisors who have clients from other countries. If those advisors are armed with knowledge of how to approach the constantly changing global marketplace, they can obtain coverage for their clients without undue delays and possible declinations by observing a few "global rules."
1. Know your client. Find out how many days out of the year your client spends in which countries and the nature of the visits–whether business or personal. A citizen of Afghanistan, for example, may be insurable if he spends all his time outside of the country and has significant interests elsewhere. Likewise, a European who travels to the West Bank, even on occasion, may be a challenge.
2. Get the client to "think like an American." In most other places throughout the world, the depth of questions U.S. carriers and reinsurers ask of insureds is considered rude and invasive. Too bad. Your client should be prepared to answer direct and thorough inquiries into his business interests, travel habits, income, and health.
