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Article - "Expatriate Insurance" By David Tompkins, President, Expat Financial As appeared in
Monthly International Relocation Newsletter
vol.2, no.12 December 2000
Most expatriates know that they need to obtain
their own insurance coverage - but what types of coverage are
required?
The first coverage most expats think of is health
insurance. While the country you are moving to may have a government
health plan that you can join, you might want to think twice because
state plans are often of poor quality and what happens to your
coverage if you move or require treatment back in your home country,
such as the USA.
Private health plans are made up of two types of
plans, "in-patient" and more comprehensive "in-patient
and outpatient" plans. In-patient expenses are primarily incurred
while in a hospital-including accommodation and surgeon's,
anesthetist's and physician's charges. For those who want more, a
comprehensive plan would cover the in-patient care as described above,
along with a wide array of outpatient care. Such expenses include:
psychiatry, organ transplants, rehabilitation, home nursing,
childbirth, home delivery, general practitioner's consultations, eye
& ear specialists, other specialists such as dietetic guidance,
vaccinations, lab tests and analysis, x-rays, scans, EKGs, hearing
aids, physiotherapy, chiropractors, osteopathy and a certain amount of
prescribed drugs.
Common additions to your health plan include
dental, vision and evacuation. Medical evacuation is well recommended,
especially if you are traveling a lot or are living in a third world
country. You also have to decide if you want a plan that will cover
pre-existing conditions, how large a deductible you want and if you
want to be able to get treatment and coverage for the USA and Canada.
Make sure you will be able to maintain your current insurance coverage
if you are planning on having children, as all other plans have a
twelve-month waiting period for maternity expenses. Expat Financial
offers international health plans from many different carriers to meet
your own unique needs.
Another coverage expatriates think of is life
insurance. Basically, you want to have enough coverage to pay your
last expenses (funeral & bills), pay off any mortgage or loans and
then have a pool of capital left over that your heirs can live on for
a set number of years. Many financial advisors recommend having life
insurance equal to seven to ten times your annual earnings. There are
many types of coverage. Term insurance is the most popular and least
expensive over the short term - your premium remains the same for a
set number of years, increases as you age and then cancels around age
60. Some term plans allow you to convert to the more expensive Whole
Life and Universal Life plans, which allow you to have coverage for
life at an unchanged premium. If you live in a dangerous country or
engage in a risky occupation, your premium will be increased or you
may not be able to get coverage. Make sure your insurance is with a
reputable company and that you can keep the coverage if you return
home. Expat Financial offers international life insurance to
expatriates around the world from several different carriers.
Finally, it is important to protect your most
valuable asset, your ability to earn an income. Disability insurance
is the most difficult to underwrite because it is also quite
expensive. Expat Financial offers an excellent plan that can cover up
to 75% of your income with benefits starting after three or six months
and payable to age 65. Only white-collar occupations are covered. For
many expatriates, their employer plans may be their only option. Make
sure that your plan covers both accident and sickness.
In searching for the right plan, the Internet is
the first and easiest way to obtain information on the plans and
carriers available. You can also ask your fellow expatriates. Because
not all plans are made for all people, talk to an insurance broker who
offers several different plans and carriers. A consultation costs you
nothing as the insurance company you choose compensates the broker.
At the end of the day, make sure you have all your
insurance bases covered with the plans that fit your needs and budget.
Remember, what you are buying is not just protection, but peace of
mind.
About the Author: David G. Tompkins, BA, CLU, runs
Expat Financial/Tompkins Financial Group Ltd. - an international
insurance brokerage. He can be reached via tompkins@expatfinancial.com
or http://www.expatfinancial.com
or 604-351-5278 or in North America at 800-232-9415
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