What is personal insurance, and why do I need it?

Commonly, expats are not fully covered for life insurance by their employer when living and working abroad.

Whether you’re a professional, just starting your career, a parent, in transition or nearing retirement, life insurance can help you to protect the future of the people you love.

Here’s a look at the different types of personal insurance available to individuals currently living and working away from home:

Income protection: protects your savings

It can’t replace you, but income protection insurance can replace your income to protect and support your loved ones should anything happen to you. 

It helps to pay off debts, and day-to-day living expenses including housing, food and clothing; as well as your child’s university education and your retirement, without you having to tap into your savings.

Critical illness and total disability insurance: pays the bills whilst you recover

Critical illness cover is crucial when living overseas as you need to have safeguards in place to replace your monthly income if you don’t have savings to cover you should you become seriously ill or disabled. It's also applicable if you don’t have an employee benefits package to cover yourself and your family during the time you take off work to recover from sickness.

This type of cover gives a tax-free ‘lump sum’ – a one-off payment, to help pay for your mortgage or rent, debts, or pay for alterations to your home such as wheelchair access should you need it, but it’s your choice how you spend it.

Read more about personal insurance

Whole of life insurance: leaves a legacy

Whole of life insurance covers your family should anything happen to you during your working life. It makes sure your children; favourite charity, spouse or partner receives a financial legacy.

Whole of life insurance accrues a cash value if you don’t claim on the insurance, so you can cash the value of the plan in once you reach retirement if you no longer need it. Alternatively you have the option to leave your plan in place and use it to pay for inheritance tax.

Life insurance: takes care of everything

Life insurance proceeds guarantee everything from your family to your estate is well taken care of.

Life insurance can help to pay for major life events such as buying a house, paying for a wedding, or getting a degree. This works if you buy ‘whole life insurance’ and then decide to change your needs, so the cash value in your policy, or the ‘living benefits’ can be borrowed against for you to do what you need to do.

By paying the premiums of your whole life policy, you begin to build cash value; you can then access those funds via policy loans. Remember though, loans accrue interest and decrease the death benefit and value.

Personal Insurance alleviates worry and allows greater peace of mind, leaving you secure in the knowledge that both you and your family are protected against any eventuality, so your family can continue to enjoy your current lifestyle should any unforeseen circumstances occur.

Whilst you’re living abroad, arrange a free meeting to find the best quote to suit your personal situation.