How Expats Can Save Money on Essential Insurances

There is just so much to organise when you’re in the process of setting up a whole new life abroad!  Who would have thought it would take so long to get visas in place, shipping sorted, pets vaccinated and vet ready and your children into your chosen school abroad? 

The amount of time it takes to get every essential aspect of your new life in place can leave you with very little time for the last few essentials such as health and travel insurance for example…and I’m sure that’s what insurance companies are banking on!

Expats are forever being inadvertently (?) ripped off when it comes to insurance.  They end up doubled up with some insurances, under insured in other areas and basically paying well over the odds for the essential yet basic insurance products which they need.  Well, in this article we’ll show you how expats can save money on essential insurances without cutting cover…

If you’re planning a new life abroad, chances are you haven’t even thought much about the insurance you’ll need to have to cover your health care needs, or the policy you’ll need to make sure your family is protected if something happens to you.  And if you haven’t thought about these policies, you probably haven’t thought about getting travel cover in place and a policy to cover your new home and its contents have you?  You see it’s these boring but essential details that get left until the last minute when you have little time and even less patience left to sit down and sift through the many, many insurance policies out there!

This is probably what insurers are banking on because let’s face it, insurance is a game.  You pay to play and the ultimate goal is for you to be able to get your insurer to pay up should the need arise, when all the while their objective is to never part with a penny of their profits!  So they hope you’ll come to them when you’re desperate and rushed, and when you don’t care what the policy says, as long as it comes in at the right price and the large print selling the product vaguely describes the type of policy you need.

Unfortunately, this means that the vast majority of expats are not only spending more than they need to on insurance, but that they don’t even necessarily have the right type and level of insurance in place!  So, here are 5 top tips to help you save money and even time on getting your essential insurances in place: -

Use a Financial Adviser to Find You the Right Policy

You might think it’s overkill getting a financial adviser involved with finding a decent health or life insurance policy but in reality it’s not.  You see, you can ‘bribe’ an adviser to do all the leg work for you, because then if they do get you the best products you are highly likely to call on them again when it comes to getting all your savings and investments in order.  So, because they know it is 100% in their best interests to get you the absolute perfect insurance policy, they will go the extra mile on your behalf to make sure you have the right product from the right provider at the right price.  It benefits them in the long-term and it benefits you from the word go.  If you find a decent adviser who will help you in this way, you can be pretty sure they are reputable and trustworthy!

Be Prepared to Shop Around

Whether you use an adviser or not, be prepared to shop around between insurers and see whether you can compare like for like.  See which insurers are offering any extras for the same premium, see which insurers are cutting out the rubbish from their policy and thereby reducing the premium you pay.  Not all policies are the same, and not all providers are the same either.

Think About the Excess You Pay

Generally speaking, the higher the excess you’re willing to pay, the lower the monthly premium.  So, think about how often you’re likely to need your insurance and what level of excess you’d be comfortable affording.  Factor this in when collecting quotations.  The more fiscal responsibility you’re willing to take, the better the potential premium you will ideally pay.

Pay Up Front

Did you know that if you pay in monthly or quarterly instalments for your insurance cover you could be adding up to 30% APR in the form of interest on the amount owed month by month!  If you don’t pay up front you’re massively ramping up that which you ultimately pay the insurance provider.  So avoid this rip off interest rate and pay for your policy up front on a year by year basis if you can.

Get Back to Basics

So many insurance companies now add a whole host of bells and whistles to their products so that you end up double-covered for some things.  Look closely at each product you’re interested in and see what exactly you’re covered for.  For example, if you have a travel insurance policy in place for when you move abroad, you don’t need to have that include valuable items outside of the home if your home contents cover deals with such items.  Avoid doubling up on cover. But at the same time, make sure you are covered for everything.

Getting all the insurances in place, not doubling up and ensuring you’re not paying over the odds is a complex juggling act – which is just one more reason why using the services of a financial adviser as a starting point can be of benefit.  When you’re moving abroad you have little or no time available to sort all of these things out, so let someone else take the strain!  Just ensure you apply due diligence to your selection criteria when picking a financial adviser.