It is well known that those living abroad must obtain special insurance policies, such as international health insurance and international property insurance. However, some expats overlook the importance of overseas life insurance.
An expat life insurance policy is much like a standard life insurance policy that would be provided by an employer, but with some important differences. Here is how expat life insurance can protect your family while you are living and working overseas.
Your Existing Policy May Not Be 'Portable'
Assuming their existing life insurance policy is borderless and will protect them in every country, some expats neglect to obtain a new policy. Unfortunately, if tragedy occurs, these individuals’ families are often unable to collect on a life insurance policy. This can leave these families in a financially dangerous position.
Many life insurance policies contain exemptions that exclude coverage if you travel or move abroad. Even if a policy covers a specific destination country, many (if not most) standard policies are 'non-portable'. This means the policies are not valid as expats move from country to country. In addition to moving, check to see if the policy covers you whether you change jobs, retire, or move anywhere in the world. By obtaining an expat term life insurance policy, you can ensure continuous coverage for your family during your time abroad.
Check Medical Underwriting & Exclusions
Typical life insurance policies under $500,000 don’t require medical underwriting. Before purchasing a policy, check to see if the coverage amount requires any medical underwriting.
Although life insurance policies cover against death as a result of illness, accidents, and acts of war and terrorism, it’s crucial to find out exclusions.
Life Insurance Can Provide Important Funds
A proper expat life insurance policy can provide important funds to ensure the financial security and comfort of your family. Some of these expenses include:
- Settling the estate, including paying legal expenses
- Paying off debts, allowing the family to be free from financial obligations to others
- Providing resettlement back to the home country
- Reserves to cover future educational expenses for the family
Since 1947, Clements Worldwide has been a leading provider of international insurance for expatriates and international organizations. Clements offers car, property, life, health, and specialty and high risk insurance to clients in over 170 countries. To learn more about international life insurance, visit Clements Worldwide.