Life Insurance for Expatriate Australians and Migrants
Moving countries, together with marriage, having children and starting a business, should be one of those occasions on which you should consider whether you have adequate life insurance cover. Life insurance is a fundamental "building block" within any financial planning strategy because it protects your family against the risk of premature death or ill health, and the sometimes catastrophic financial consequences. Arguably, you should have plans in place both to protect your life (and that of your spouse or partner) 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, or it may expire after a certain period of non-residency.
- 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, international 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 and, typically, corporate life cover is limited to one or two years employment income - which is totally inadequate cover on a stand alone basis. If your employer does not provide a robust level of cover it is up to you to enter into personal arrangements which provide sufficient additional cover - life insurance should not be considered an optional expense. The emphasis should be arranging comprehensive, quality cover which represents good value; preferably before you depart Australia.
Arranging Life insurance
In the website 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 - including the fact that cover may not be available in your host country.
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 working or resident in certain countries or occupations, then coverage is almost always available through arrangements with International brokers and insurers.