If the last two years have taught us anything, it is that we should expect the unexpected. That’s why life insurance is a key element of a sound financial plan. We take a look at the main mistakes people make when it comes to life insurance. Life insurance mistake number 1: no life insurance This…
It almost goes without saying that it’s crucial for all expatriates to have full insurance protection for their health, life, business, and property.
However, people often only discover whether they have the right levels of cover when it comes to claiming. This is why good advice can be as important as the insurance itself. We provide access to a wide range of insurance services for expats in Asia.
Infinity works with leading insurers to offer clients a wide range of insurance products, including:
- International and local medical health insurance
- Life and Critical Illness insurance
- Accident and disability insurance
- Income protection
- Personal indemnity insurance
In Cambodia, we have been able to extend this cover to include general insurance – covering personal possessions such as property, vehicles, and belongings.
Nobody likes to think about it, but financially protecting yourself – and your family – from untimely death, illness, or accident could be the single most valuable investment you make.
Our partners are some of the world’s leading insurance providers, and our relationships with them allow us to provide outstanding levels of cover but with discounted premiums.
Finding a life insurance policy as an expat can be a daunting and confusing task. There are many unique factors to consider, but that does not detract from the importance of taking care of your family and loved ones in the sad event of your death.
Generally speaking, there are two kinds of expat life insurance: Permanent/Whole life insurance or level term life insurance. Permanent life insurance involves a standard premium paid for a long period of time, and the payout remains the same. Expat term life insurance involves set periods fixed to a specific payout amount. Once the fixed period is over, you can adjust the payout amount. Permanent life insurance has higher premiums than expat term life insurance.
Ultimately, what you are looking for is coverage that will satisfy your needs and the needs of your family members should you suffer unexpected or accidental death in a new country. Often in the life of an expat, the company you work for can give you a new life in a different place that might change your cover needs and the type of insurance benefits you are looking at. It is important to find coverage that works for your personal needs.
When you are living abroad, you will have minimal options with insurance companies in the country where you have citizenship. This makes it a far better option to consider an international life insurance company instead.
This is appropriate both for travelling or living abroad. The most popular of these kinds of policies is the term life insurance policy, where you pay and receive cover for a predetermined amount of time only. This might mean that your coverage is annually renewable, but due to the flexibility of these plans, it remains the more popular choice.
If you already have a domestic life insurance policy, be aware that it likely will not cover occurrences overseas. Try to find an international life insurance policy with worldwide coverage.
In the initial stages of purchasing expat life insurance, you will need to figure out how much you want to ensure your life for and who your beneficiaries should be. Once your policy term is active, you can rest assured that your nominated beneficiaries will receive a payout as long as you make sure that your premiums are paid every month.
With some international life insurance companies, a clause states that if you are diagnosed with a terminal illness or dread disease and have fewer than a year to live, the benefits will be paid out to you before you pass away. This will mean that the power to dispense this life benefit as you like will lie with you.
There are certain things that are usually covered in international life insurance plans; for example, the following benefits are standard for more term life insurance:
- Common causes of death (including both illness and accidental death)
- Death benefit while living and/or working abroad
- Death while in the country for which you have citizenship
Then there are also things that international life insurance usually does not cover:
- Pre-existing medical conditions
- Negligence, criminal activity, or substance abuse
- War or terrorism in a country you are warned not to go to
- A death that is not reported within one year
- Death in a country where international life insurance does not reach
These things are not included in cover for a number of reasons, but they are quite standard even for term life policies that are flexible. Some may consider suicide cover after a certain period has passed, but it is unlikely.
Ultimately what you are looking for in international insurance with a life benefit is comprehensive cover, value for the amount that you pay each month. If you find that term life insurance is not for you, then you can opt for comprehensive life insurance in the form of a permanent insurance plan. The monthly premiums for whole life insurance are considerably higher, but you are not limited to isolated term lengths. If you are willing to pay a little more, your cover will likely reflect that.
When you have paid all of your monthly premiums, the product is purchased in full and cover within the contracted parameters is guaranteed. You will be covered well into your elderly years. However, you should be aware that some of these policies pay out fewer benefits based on your age and might not provide coverage for situations like suicide. For a long time, basic coverage provided did not even include HIV/Aids, although that has changed in recent years.
A particularly comprehensive insurance plan will include things like travel insurance, income protection insurance, or permanent disability, but that might incur additional costs. You might also find an insurance plan that has portable expat life insurance coverage.
While whole plans offer some people the security that they need, others require flexibility. Term life describes a kind of life insurance coverage that covers a predetermined amount of time. Usual the minimum is five years, and the maximum is thirty years.
For a large expatriate group, term life insurance is the best option. It is the most affordable option and offers the flexibility to an expatriate group they need while travelling the world.
Insurance needs change depending on where you are in your life. Term life insurance offers life insurance policies that grow with you. Life overseas is exciting, and your family’s future needs to be taken care of appropriately should the worst happen.
Your family might grow early on, which would require greater coverage, you would still be considering education for your children, and you might end up in different countries later in life. But when you have done most of your travelling, your career or business is established, and your family is scattered and living their own lives, then your coverage needs will be lower, and when your policy term comes up, you can decrease your benefits to match your income and the small number of eventualities you still wish to cover.
While not all processes are standard, there are some steps that you can count on during the process of getting life insurance.
These days it is most common to follow an online application process, but regardless of the process that you follow, you will first need to get a quote. There are usually medical questions to answer during this step, and some companies might require a more detailed medical history.
You will likely be offered different options based on your death benefit needs and your medical history. Some options will have guaranteed premiums, but others might not. Be sure that you have established premiums accurately and will still be financially secure based on your current annual salary with the premiums that you settle on.
With any plan, you will need to pay regular premiums for the duration of your contract term. Anything like travel obligations for your work should be declared, and you should be aware that certain countries are listed as “excluded countries” for expat life insurance.
Most expat life insurance plans will accept cancellation for any reason at any time. You will need to supply written notice, but they are not likely to decline a cancellation.
Especially in a situation where you are looking for guaranteed premiums, there will be exclusions and key benefits. In order to get the best out of your plan, it is important that you are completely transparent with your history.
Basic exclusions for any expatriate group are as follows:
- Trying or succeeding to commit assault
- If the life assured participates in war in any way
- Any participation in criminal acts
- Suicide or otherwise harming yourself, regardless of state of mind
If you want to ensure that your life benefit stays for your family members, then you should avoid any such acts that are excluded from your cover. Even flexible plans like level term life insurance would have some exclusions to their benefits.
I began investing with Infinity in 2018 adopting a cautious investment strategy to protect my capital – retirement in mind. Infinity established and has subsequently successfully managed a low risk investment portfolio primarily using initially Stephen Bottomley and currently Elmira Donald; both capable consultants.
I would like to take the opportunity to thank you for the excellent service that you have provided over the last couple of weeks. You helped make a laborious process much, much easier. Thank you.
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