As an expatriate living abroad there are many uncertainties, upheavals, unknowns and concerns especially when it comes to fiscal matters. Life insurance is important to consider for your peace of mind as you will want to protect your loved ones in the event of your death.
The type of life insurance you need depends on your objectives and you need to assess the level of insurance required in order for your family to maintain the same standards of living in the event of your death. A number of options are available including:
Insurance against your untimely death for the fixed number of years at a fixed price for the term.
Insurance which can be used to pay off a mortgage or other loans in the event of your death, during the outstanding period of the loan. With this type of insurance, the death benefit decreases over the term and shrinks to practically nothing in the final year. Premiums for this type of insurance are generally lower than for a regular term policy or a whole life policy with the same face value.
Insurance that covers your beneficiary in the event of your death whenever it occurs. The benefits are paid upon the insured’s death or at an age specified in the policy (typically at the age of 100 or more).
Insurance that can be used by expatriates, who wish to insure themselves one year at a time, depending on their changing circumstances.
In terms of health insurance, it is important to ensure that you and your family are covered in your new country of residence and also while travelling. Always make sure that you are comfortable with any restrictions or limitations in policies recommended to you and be aware of any excess you may be liable for in the event of a claim.
Medical costs and standards of treatment available may vary from one country to another. It would be beneficial to find out which services are available in your country of residence and which services are covered by your insurance. You might want to consider the option to repatriate in the event of an emergency.
An increasing number of companies offer health insurance in the marketplace. The offers may vary in terms of specific features, benefits, exclusions and exceptions so it may be daunting to choose the one that is right for you. A financial consultant can go through these options with you and advise on the best possible offer to suit your need
Critical illness insurance can ease the stress and financial strain in the event that you are incapacitated due to a serious illness.
Financial expenditure and outgoings will not cease if you are taken ill. However your ability to provide for your family will cease. Critical illness insurance is designed to provide a payout in the event that you are unable to work due to serious and ongoing illness.
Income protection insurance is used to replace a percentage of your income if you are unable to work due to injury or illness. It provides a lump sum or regular scheduled payments if you become debilitated and are unable to continue working.
The insurance may provide close to 75% of your salary if you are unable to work due to sickness or an accident.