LIFE INSURANCE
WHAT is a term life insurance?
The term life insurance is an insurance policy that will provide a lump sum cash payment in the event of an unforeseen death. Term life insurance is the most important coverage for expatriates as it provides a financial safety net for their family and dependents. It also gives the flexibility to cover only the duration of your expatriation. Indeed, term life is by nature limited in time and you can choose to cover only 1 year, or a longer period of time (up to 30 years!) and adjust it through the different phases of your life.
The expat term life insurance, also called international life insurance, is purely a protection tool, and most products do not have accumulated cash value. For that reason, term life premiums are usually affordable, as long as the insurance is purchased at a relatively young age and when the insured is healthy. The premium will increase significantly with age and insurers will apply loading if you have existing medical conditions. Of course, your lifestyle will also be a significant factor in the calculation of the premium. Being a smoker will significantly increase your insurance premium. The country of expatriation may also impact the premium.
DO I need term life insurance as an expatriate?
Although most companies will include term life policy in the employee benefits package, it is important that expatriates consider buying their own policy as well, for 2 reasons:
- The corporate coverage amount may not be enough to cover your family’s financial needs in the event of an unexpected death.
- The corporate contract will cover you only during the time spent in that particular company. When you leave the company, the coverage will stop and your age or medical condition at that time may restrict you from buying a term life policy on your own.
How to buy term life insurance?
Usually, you need to buy the expat term life insurance through an insurer registered in your country of residence. If you do, make sure you buy from a reputable company that will allow you to continue paying the premium even if you leave the country. Alternatively, a few companies are able to provide offshore policies. You will only need to do your medical check-up locally or in the nearest country if such a service is not available in your country of residence.
Contact us to understand the options available for you and select the right plan to suit your needs.
