Life insurance is one of those ‘things’ that we all know we should have in place, and yet we are often guilty of putting off the purchase of cover because it’s not something any of us really like to think too much about – i.e., our own mortality.
As expatriates we’re often forced to face up to realities we’d like to avoid – for example, Britons moving abroad usually have to begin forking out for medical insurance which can draw ones attention to how healthy or otherwise one is! If you move to certain nations you also have to consider getting public liability insurance in place, and by being forced to focus on protection against all of these potential negatives means that putting off the purchase of life insurance becomes even more commonplace!
And yet…do you have a family, a spouse, children? Do you have a mortgage, debts or other financial liabilities and commitments? If the answer is ‘yes’ to any of these questions then really, you need to think about whether you need life insurance cover. Sigh – however, the good news is that we’re here with some top tips about how expats can potentially get cheaper life insurance and save on their annual premiums…
Having hopefully convinced you that you really do need to face the fact that you may need life insurance, our number one tip is: -
If You Don’t Need it, Don’t Buy it!
Sorry to be contradictory here!
If you buy a house in the UK you’re practically bullied into buying life insurance by your mortgage provider…but not everyone actually needs cover…even expatriates. For example, if you have no debts, no dependents and are fairly footloose and fancy-free, what’s the point of having an insurance policy in place that will pay out when you die? Who will benefit, who will really need the money?
What’s more, even those who do have dependents and/or liabilities may not need as much life insurance as they may first think…as an individual you need to look at things such as what your employer may pay out for ‘death in service’ benefit if you die whilst at work. Also, some premium bank accounts from onshore and offshore providers have a level of life insurance included. So, tally up what cover you have where and with whom – look also at your medical and even car insurance to see if that provides you with cover – and from that position you can determine if you need cover and if so, how much. Don’t over buy cover!
Shop Around for Quotes
As is always the case with insurance, if you shop around you get such a wide array of quotes to choose from! It’s certainly not worth buying the first product you see or are offered because it’s not necessarily guaranteed to be the best! You need to shop around…which can be easier said than done. In the UK and the US there are a million price comparison websites, but in other expat hotspots there are fewer easy options to compare online. The good news is that an online comparison site is coming along apace in Spain – watch this space for updates – and we’re sure that other nations will follow.
In the meantime however, if you are ‘in country’ and speak the lingo you can go online and search out for some local quotes, or you can speak to an expat financial adviser to see what they can offer. Whilst selling life insurance is not bread and butter for these guys, they will help if they can because any business is good business! Use our expatriate financial services pages if you want to find an adviser who can help you.
It Doesn’t Always Pay to be Loyal
Whilst loyalty to a partner is certainly preferable (!) and loyalty to an employer can sometimes be advantageous, it seldom pays to be loyal to your insurer! Many people assume that life insurance is a ‘once purchased’ item and that you just face the premiums each year as they invariably increase – however, this is absolutely not always the best approach. Insurers change the basis on which they offer cover, you may change your lifestyle and become healthier (!), your liabilities may increase or decrease, and premiums and offerings change annually. Therefore, you should consider reviewing your cover and who insurers you annually to make sure you’re not over paying for the level of insurance you need.
We hope these tips have helped you to determine whether you need cover and if so, how best you can get it in place as cheaply as possible – but if you want another bonus tip for free, here it is – give up smoking and lead a healthier lifestyle! This will cut your premiums by as much as half!
