Most expats are too busy dealing with the day-to-day money issues that crop up and often fall into the trap of not arranging personal life insurance cover.
Unfortunately, many do not find out the value of taking out the right life insurance until the unexpected happens and they find they lack the protection they assume they had with cover from their employers.
Many expats put off arranging their own life or health insurance because they believe they are covered by their employers, but this is not always the case.
For instance, if an expat has to stop working and return to the UK because of serious illness, the policy rarely ever pays out.
It’s a sad fact that most expats are better off dying from a serious illness than recovering but remaining unable to work, because life insurance pays out when other policies do not.
Employer packages can fall short
That’s because as soon as the expat stops working they are no longer an employee and cannot make a claim.
Only the unexpected reveals the shortcomings of the life cover provided by many employer benefit packages.
Take some time out to read the small print of the employer package to ensure the cover is adequate for your personal needs.
It’s true that taking out expat life insurance is more complicated and more expensive than comparable policies back home, but that extra outlay is worthwhile for the security and peace of mind you and your loved ones can enjoy.
What cover do you need?
Life insurance can provide a financial safety net under a number of circumstances:
Income protection offers an ongoing income if someone can no longer work due to illness or disability.
How long the cover lasts and how much income is paid depends on the level of contributions and the terms offered by each provider
Private health cover depends on the country where you live and the medical standards offered by local hospitals. You might have to consider repatriation or evacuation to another country to treat some serious conditions
Critical illness insurance pays out on diagnosis of specific serious illnesses, such as cancer, heart attacks or strokes. How much is paid depends on the policy and the level of contribution.
Life insurance pays a lump sum if you die
The cover an expat needs depends on their personal circumstances.
Tailoring the package
Speaking to a life insurance expert will show up the gaps in any existing insurance policies and highlight the level of cover needed in the country where you intend to live.
For example, medical costs are much higher in some countries and expats may need an interpreter for dealing with doctors and medical staff.
Insurance is a vital protection against the unexpected and needs tailoring to each expat’s local and personal circumstances.
For expats on the move, portable policies are available that offer adjustable levels of cover in different countries. These polices remove the need to cancel and set-up new cover for each posting.
It’s not easy to buy life insurance online, so it’s best to speak to a qualified adviser who will find the most suitable policy for you.