Life insurance for expats in Asia – are your family protected if you move?
Written by Carl Turner on October 21, 2016.
Did you know that moving country often invalidates your life insurance? Many people don’t and this can leave them and their families vulnerable. That is why it is extremely important for expats to check their existing life insurance when moving and preferably opt for a policy which will cover them wherever they go. An international life insurance policy is usually the best option for this.
Life insurance protects your loved ones financially in the event of your death. A lump sum payment will ensure that they can cover their living costs even when your salary is taken away. Life insurance payouts are used in many different ways including:
• To pay the family’s everyday living costs including rent/mortgage, bills and food
• To settle any inheritance tax liability payable on an estate
• To pay off any outstanding debts including a mortgage and credit card bills
• To set up a retirement fund for a spouse or partner
• To cover ongoing school and university fees for children
• To pay the costs of relocation back home and cover the cost of renting or buying a property there
If you are moving, you need to contact your existing insurer to find out whether or not your policy is portable. As mentioned above, often this is not the case and it will be invalidated after three months of living abroad.
In that case, you will need to look at new cover to meet your changed requirements.
Even if your insurance is not invalidated by the fact of you moving, other factors may come into play which affect it. These include major life changes such as marriage, divorce or the birth of a child, changes to your employment status or taking up a dangerous hobby. Taxation is also a consideration – the level of cover you had in your home country may no longer be sufficient once you move.
International life insurance policies are undoubtedly the best solution for expats as they are specifically designed for those living and working abroad and potentially moving around a lot. They will have benefits above those offered by domestic policies including:
• Worldwide coverage wherever you go, however temporarily
• Portability when moving countries permanently
• Terrorism cover (subject to terms and conditions)
• Peace of mind that you can renew annually whatever the state of your health
• Possible add ons such as critical illness insurance and personal accident cover
If you want to protect your family’s financial future and would appreciate the peace of mind offered by an international life insurance policy, please feel free to get in touch. I have a wealth of experience in this field and work with all the major providers to be able to get the best deal for your individual requirements.