Life Insurance - Expatriate Issues

Expatriation, together with marriage and having children, should be one of those occasions at which you consider whether you have adequate life insurance cover.  Life insurance constitutes a fundamental part of any financial planning strategy because it protects your family against the risk of premature death or ill health, and the sometime catastrophic financial consequences. Arguably, you should have plans in place both to protect your life (and that of your spouse) and your income, before you move onto considering investments.

Reasons for reviewing your life insurance cover before proceeding overseas include the following:

• Your existing life insurance may not provide cover if you become resident overseas.

• Expatriate assignments often mean that families become more reliant on one, higher paid, income.

• Your income and cost base will often increase as a result of expatriation; to include private schooling, health insurance and potentially the maintenance of overseas property, and

• Any (unplanned) return to Australia because of death or health issues will result in additional costs

If you are on an employment contract overseas, then the amount and breadth of insurance cover is an unexciting, but nonetheless important aspect, of your salary package. Employers have an increasing tendency to provide money in lieu of services to expatriates where it is tax effective. However, this is one situation where employers will normally be able to source coverage much more easily and at considerably lower cost than individuals through a group or corporate scheme. If your employer does not provide a robust level of cover it is up to you to enter into personal arrangements - this is not an optional expense.

Life insurance is not simple ...

We provide an overview of some of the more commonly available forms of insurance and the options available to expatriates seeking new or additional life insurance cover. You should seek professional advice if you are seeking life insurance, particularly as an expatriate, because of the various additional complexities which could affect cover.

Exfin provides no obligation access - via our Inquiry Form - to life insurance brokers in Australia and worldwide, who are familiar with the particular issues surrounding both the coverage of Australians while overseas. Our approach is to try and arrange coverage through Australian insurers and brokers first - because it is usually more cost effective and provides continuity on return to Australia. If this is not possible, and Australian insurers may decline to cover expats in certain countries or occupations, then coverage is almost always available through International insurers.

Complete the Inquiry form