| Life Insurance for Expatriates | | |  Policies designed for UK Expatriate community UK based advisors (not a call centre) Wide policy wording responding to local needs Immediate cover (by email) if required - Fast Policy issue | Guide to Expatriate Life Insurance Number One- Think Protection Then Investment - alas life insurance is something that most of us would rather not think about. Unfortunately it is something that we need to consider, particularly if we have dependents, or outstanding finance commitments or a mortgage or a property that would result in financial hardship for our families if we were no longer around to provide an income to meet payments. Let us start off by dealing with the confusion relating to the differences between life insurance and life assurance, well there isn’t any, insurance tends to be used for general insurance products such as motor & home insurance uk and assurance tends to be used to describe the various forms of life insurance. I try to think of the two as insurance being cover something that may happen and assurance against something that will happen (although not always within the policy term)
Life insurance is all about death, regrettably we all have to die sometime and by insuring our lives against death, we can help alleviate any financial hardship that may befall our loves ones. Life insurance is designed to provide a lump sum payment in the event of the policyholder’s death. This sum insured as it is known, is usually chosen by the policyholder and is paid out before the expiration of the policy. This simplest form of life cover is called Term Life Assurance. At the end of the policy terms if the policyholder is still alive, generally there is no payment at all. In simple terms this type of Term life insurance is used to safeguard a loan or a mortgage. Mortgage.
Say you are married with two small children and you have just taken on a new mortgage of £150,000 to be repaid over 25 years. The mortgage provider will want you to provide some security for the loan and this is done by means of a term life insurance policy. At the end of the 25 years when the mortgage is paid off, the policy will expire. The sum insured must be maintained at £150,000 throughout the period of the mortgage if you are repaying on an interest only basis. If you have a repayment mortgage whereby the amount owed reduces each year, you could consider a decreasing sum insured term life insurance policy whereby the sum insured decreases in line with the actual amount owed.
In the above example, a sum insured has been picked to cover a mortgage although in practice most people want to choose a higher sum insured so as their dependents will be left a sum of money in the event of their death. The ability to purchase term life insurance depends on a number of factors, your age, whether you are a smoker or not and if you have any pre existing medical conditions. IN some cases, usually because of sum insured, the life insurance company may want you to attend a medical before they provide you with term life insurance cover. Term Life Insurance is available from a number of insurance companies and at Assetsure; we have a separate life and pensions division that will only be too pleased to discuss your requirements with you.
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