Each day, the number of people choosing to work abroad increases more and more. Unfortunately, this significant change can cause high levels of risk, pointing out the importance of having life insurance coverage to protect you and your loved ones if the worst happens.
Therefore, you should consider purchasing life insurance as an expat. Here’s what you need to keep in mind!
Table of Contents
Types of Life Insurance
The first thing you should take into account is the type of life insurance you can get as an expat. There are two types – permanent or whole life insurance.
Permanent life insurance covers you for a particular period, typically starting from ten years. This insurance type provides flexibility in choosing coverage amounts based on your life stage. However, once the term ends, so does your life insurance, which some find unappealing as they might not be able to renew the policy in the event of sudden health changes.
On the other hand, the whole life insurance might be more suitable if you’re working abroad. It costs more, but there aren’t any limitations on the term length, and you’re covered until your later years.
Statistically speaking, most expats tend to benefit more from international insurance, as they give the flexibility to adjust coverage according to particular needs. However, whole life insurance is better if you’re concerned about potential health changes that may make you ineligible for coverage in the future.
Amount of Coverage
When deciding how much coverage you may need, there are three points of view – short-term, medium-term, and long-term. Therefore, your decision relies mainly on how you perceive things and what you think will be the best at that moment.
In the short term, life insurance can cover immediate expenses, such as funeral costs, end-of-life care, and support for the remaining family members. Furthermore, medium-term life insurance takes care of debts like student debts and mortgages so that your family members can function with reduced income but without any financial issues.
Lastly, if you’re thinking long-term, you must consider factors like income disparity and the financial well-being of you and your partner. For example, life insurance replaces the cost of unpaid labour for families with a stay-at-home parent. Also, long-term life insurance includes expenses like counselling, tuition, childcare, and housing costs.
Life Insurance Expenses
After choosing the type and the amount of coverage, it’s essential to consider the costs of your life insurance. The price depends on different factors, such as age, health condition, lifestyle choices such as smoking, and of course, the type and the amount of coverage.
In general, women pay less than men due to statistical results about their lifestyle and health. Moreover, insurance companies require you to fill out a medical history questionnaire so that they can give you their best services for the best price. However, it doesn’t mean that if you’re younger, you’ll get a better deal. Sometimes the difference in price for a 30-year-old and a 40-year-old is not significant at all.
Therefore, you should consider purchasing life insurance or expat health insurance. Here’s what you need to keep in mind!
Conclusion
Life insurance is a necessary part of everyone’s life as it provides benefits after your death so that your family can have a better financial situation, especially if you’re an expat. Therefore, you should consider the above mentioned factors and choose the right company to get the best insurance for working abroad.
