There are 4 basic types of personal insurances that we believe should be considered by every expatriate and international investor.
1 Life Assurance
Clearly the requirement for life assurance will vary depending on each individual’s circumstances but of course, as a general rule, one should consider whether life assurance is required if there are dependants to consider. Spouses, children and possibly even parents could be severely impacted in the event of the death of a breadwinner.
Specific protection can be put in place to cover a mortgage, university fees or simply to provide an income for dependants in case of the death of the family’s main earner.
There are two principle types of life insurance cover – Term Assurance and Whole of Life cover and we are well-equipped to provide advice on how these insurances work and which type of policy would be most appropriate.
2 Medical Insurance Cover
Many expatriate employment packages will include good quality medical insurance for the employee and immediate family members such as spouse and children. Such cover provides peace of mind so that in the event of some serious medical requirement then the insured person’s medical expenses will be covered. This is vital to consider when living in a foreign land. However, there are more and more instances these days where adequate medical cover is not provided. In such cases we have a range of options that we can advise on so that the ideal type of cover is put in place.
Some of our clients have a need for comprehensive cover so that any visits to the doctor are included whereas other clients might only require insurance for major medical calamities such as heart attack and stroke. It is a fact of life that if such an event were to strike without warning in a far-off land then the resulting medical bills could wipe out years of careful savings and investment.
Of course every individual’s circumstances are different to the next so please talk with our experienced advisers to explore which type of cover would be most appropriate for you.
3 Income Replacement Insurance
Often overlooked, this class of insurance can be an important component of a comprehensive financial plan. It provides an income stream if the insured person is unable to work due to accident or sickness.
Imagine for a moment the impact on an individual’s financial plans and aspirations in the event of a sudden total loss of income. Imagine if such a catastrophic event occurred with 15 or 20 years left on a mortgage or school fees plan. In most cases the outcome would be the complete destruction of any semblance of previous financial planning.
Imagine for a moment that the family breadwinner is a machine that generates X dollars per year in income. If you owned such a machine – would you insure it? Of course most right-thinking people would insure the machine and the income stream it generates. The notion of insuring a family breadwinner’s income is precisely analagous to the example of insuring the machine that generates money. The effect on the family of the loss of the income would be identical.
4 Critical Illness Cover
The purpose of such cover is to provide a capital sum in the event of the diagnosis of such life-changing medical conditions as heart attack, stroke, cancer and many others. This type of cover can also include optional extra benefits such as a daily cash sum in the event of a hospital stay, or permanent total disability for example.
Some insurance companies offer critical illness cover only as part of a life assurance policy whereas others can offer critical illness cover as a free-standing policy. As always when discussing complex requirements, a detailed discussion with a competent adviser is essential in order to identify the best option or combination of options.