It is all
too easy to overlook the need to protect you and your family
should the unexpected happen. But have you ever consider how
your family would cope financial if you were to die, or were
to become ill. Do you just want them to "get by" if you die
or do you want them to continue with the lifestyle you
sought when you became an expatriate? Similarly illness can
be just as, if not more financially devastating. Both these
needs can be cheaply and easily even for expatriates, with
simple policies which can cover almost any eventuality.
Protecting your family in the event of death
in the expat world works like it does the world over, if you
die it pays out a lump sum of money. This can be invested to
produce an income or the lump sum can be used to replace
two basic types of life cover, term assurance, and whole of
Assurance – Term assurance for expats is available from
a wide number of insurance companies. Term assurance has no
investment element – you pay the monthly premiums and they
provide a fixed amount of life cover for a fixed term. If
you die during the term then the policies pays out.
assurance is the cheapest type of cover, and is ideal if you
have a known liability for a fixed period, such as a
mortgage or dependent children.
life – Whole of life cover is life insurance which
provides life cover for the whole of your life. i.e. there
is no fixed term, and providing you keep up the premiums it
will pay out at some point in the future. This type of cover
tends to be more expensive than term assurance. It has
various uses, but one of its main uses is to provide cover
to pay for an inheritance tax liability.
As an expat
looking for life cover it is essential to find a provider
which offers the most competitive rates, and one you can be
sure will be able to pay the proceeds should the worst
Protecting you and your family in the event of illness
Most of us
with children or dependents, or a mortgage know we should
have life cover to protect our loved ones. But have you ever
considered what would happen if you were to become seriously
ill or unable to work for a long period of time.
employer may provide sick pay for a number of weeks or
months, but what would happen after that came to an end?
Your outgoings would still remain. Perhaps you could use
savings, or return to your home country. But what would
happen once you had used up all of your savings, and if you
returned home you would still have the problem of having no
to this potential problem could be a policy which pays out
in the event of an illness. There are two types of cover
which can protect you and your family in the event of ill
health, a critical illness policy or an income protection
protection policy is designed to replace your income if you
become too ill to work. The amount of cover is usually
restricted to around 60% of your earnings. At the outset you
would also decide when you want the payment to begin, and
would select a “deferred period”.
Smith earns £100,000 p.a., and his employer provides him
with pay for a period of six months if he was unable to work
due to accident or sickness.
you select a policy with a deferred period of six months,
i.e. you would need to unable to work for six months months
before the plan began to pay out. The longer the deferred
period the lower the monthly payments will be.
protection covers you for almost every illness, and will pay out for as
long as you are unable to work up until the end of the
policy contract, which you would select to coincide with
illness works in a very different way to income protection.
This type of plan is designed to provide a lump sum of money
in the event of diagnosis of one of a number of specified
illnesses covered vary from company to company. The
following lists shows some examples of the illnesses
Replacement or Repair
critical illness plan, the ability to claim does not depend
on your ability to work, it is based on the diagnosis of the
illness. So you could have a heart attack and return to work
within six months. The policy would have paid out.
If you were
unable to work because of stress then the critical illness
cover would never pay out but an income protection policy
illness is often used to protect a mortgage, and is often
taken out in conjunction with an income protection policy.
Although both provide benefits in the event of sickness,
they offer different types of cover.
an expat, and want to ensure that you and your loved ones
are protected in the event of your death or ill health, and
want to discuss your options and get some free quotations
without obligation then contact us to speak to an independent financial
adviser for expatriates, on +353 874 641 868 or