Life Insurance

Life Insurance: Some Options

In general, if you are an expatriate seeking life insurance whilst overseas, you have three options:

1. "Host Country" Life Insurance : You can seek life insurance cover in your host country from a reputable firm.  This may be the preferred solution if are likely to remain in the host country for a very long period of time and your future costs are likely to be in the local currency. If, however, on any premature death the family’s long term costs are likely to be more Australian dollar related (for education, housing, support) then you are taking a potential risk regarding exchanges rates and, in some situations, your family’s ability to transfer any payment out of the country.  Additionally, in developing countries, the local premium rates are likely to reflect lower life expectancies and country risk.
   
   
2. International Life Insurance : There are circumstances where it may be appropriate to consider an “international” or “offshore” life policies.  These are policies issued outside of national jurisdictions and are available in a range of major currencies.  If you intend being overseas for a number of years these may be a good fit, but should be the subject of discussion with a professional adviser to ensure that they meet your personal circumstances and that there are no untoward tax or other consequences.  Also carefully review the premium rates against alternatives (they can sometimes be high) and consider the possible impact of any currency movements on both premium payments and final payouts.
   
    
3. Base Country (Australian) Life Insurance :   Generally it is true to say that getting life insurance cover for non-residents from base country insurers is difficult, and sometimes impossible depending on the country of residence. Insurers set premiums on the basis of local mortality tables – covering a non-resident often introduces an additional level of risk which they will wish to quantify in some manner and, if appropriate, reflect in a premium.  Where the risks either can’t be quantified or are too high, or there are other significant factors at play – such as the prevalence of insurance fraud in the host country – insurance companies may refuse cover entirely.   

Exfin provides access to advisers who can provide specific advice in relation to whether coverage is available through an Australian or International insurer and what premium rates would apply.  In the course of time we intend to provide a more accurate picture of the coverage offered by Australian firms so that existing and future expatriates are aware of any coverage limitations. 

Complete the Life Insurance inquiry form