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PLANNING FOR THE WORST ENSURING YOUR LOVED ONES ARE TAKEN CARE OF


Do not worry if you have built your castles in the air. They are where they should be. Now put the foundations under them HENRY DAVID THOREAU

Introduction An increasing number of professionals of all nationalities have been moving and working abroad in the last decade. Whether you are a young executive or a high net worth individual with a diversified portfolio of global assets, you will have specific financial requirements and objectives. Offshore financial products and services can help you achieve financial security and provide you with the quality of life you require as an expatriate or international investor. Investing in international accounts is no longer the premise of the rich and famous; all expatriates living abroad may now enjoy flexibility, among other benefits, by investing their money overseas. The offshore financial industry has become more popular as financial institutions from around the world have entered the offshore market as a result of the high demand. There are now many providers that offer a broad range of services ranging from saving schemes to pension and retirement plans and wealth management accounts to lump sum investment products. Over the years, deVere has developed strong partnerships with some of the world’s leading investment houses and insurance companies, all of which offer some of the most competitive products in the marketplace and a high level of protection for the investor. In this guide, we aim to provide you with essential information on family health and life insurance planning for international investors or expatriates. In addition, one of our experienced financial consultants can assist you further by taking you through some of the options available to you that will help you start saving for your healthcare and other related insurance provisions as early as possible. If you and your family are relocating abroad, one of your first priorities from a financial point of view may well be to establish the appropriate healthcare coverage and related insurance provisions such as critical illness or income protection insurance. Cost of services abroad can differ greatly from charges you have been accustomed to in your home country, therefore, it is essential to make sure that you are fully covered. Making sure that you have these important insurances in place will give you greater peace of mind, coupled with a higher sense of security for you and your family. Below we highlight some of the key insurance covers you should consider when moving abroad.

Health Insurance In terms of health insurance, it is important to ensure that you and your family are covered in your new country of residence and also while travelling. Always make sure that you are comfortable with any restrictions or limitations in policies recommended to you and be aware of any excess you may be liable for in the event of a claim.

PL ANNING F OR T H E W ORS T: ENSURING YOUR LOV E D ON E S A R E TA K E N C A R E OF


Medical costs and standards of treatment available may vary from one country to another. It would be beneficial to find out which services are available in your country of residence and which services are covered by your insurance. You might want to consider the option to repatriate in the event of an emergency. An increasing number of companies offer health insurance in the marketplace. The offers may vary in terms of specific features, benefits, exclusions and exceptions so it may be daunting to choose the one that is right for you. A financial consultant can go through these options with you and advise on the best possible offer to suit your needs.

Critical Illness Insurance Critical illness insurance can ease the stress and financial strain in the event that you are incapacitated due to a serious illness. Financial expenditure and outgoings will not cease if you are taken ill. However your ability to provide for your family will cease. Critical illness insurance is designed to provide a payout in the event that you are unable to work due to serious and ongoing illness.

Income Protection Insurance Income protection insurance is used to replace a percentage of your income if you are unable to work due to injury or illness. It provides a lump sum or regular scheduled payments if you become debilitated and are unable to continue working. The insurance may provide close to 75% of your salary if you are unable to work due to sickness or an accident.

Life Insurance As an expatriate living abroad there are many uncertainties, upheavals, unknowns and concerns especially when it comes to fiscal matters. Life insurance is important to consider for your peace of mind as you will want to protect your loved ones in the event of your death. The type of life insurance you need depends on your objectives and you need to assess the level of insurance required in order for your family to maintain the same standards of living in the event of your death. A number of options are available including:

Term of Life Assurance – Insurance against your untimely death for the fixed number of

years of your children’s education.

“Decreasing” Term Insurance – Insurance which can be used to pay off a mortgage or other

PL ANNING F OR T H E W ORS T: ENSURING YOUR LOV E D ON E S A R E TA K E N C A R E OF


loans in the event of your death, during the outstanding period of the loan. With this type of

insurance, the death benefit decreases over the term and shrinks to practically nothing in the

final year. Premiums for this type of insurance are generally lower than for a regular term

policy or a whole life policy with the same face value.

Whole of Life Insurance – Insurance that covers your beneficiary in the event of your death

whenever it occurs. The benefits are paid upon the insured’s death or at an age specified in

the policy (typically at the age of 100 or more).

Annual Renewable Life Insurance – Insurance that can be used by expatriates, who wish to

insure themselves one year at a time, depending on their changing circumstances.

When you consider which option may be the best for you and your family, you might want to consider the following:

• If you and your partner have no children, would you like to know that your partner would

be financially independent for the rest of his/her life in the event of your untimely death

(i.e. mortgage paid, credit card cleared)?

• If you have children, the above costs may apply in addition to the costs of education

• If your parents are still alive and if you were to pre-decease them, would you like to leave

them a “nest egg” for old age?

A number of life insurance policies are available to you and your family and it is worth considering what options may be available to you when it comes to your financial peace of mind.

Receive financial advice Make sure you familiarise yourself with the necessary steps to make the most of your advantage as an expatriate and understand the different options available. If you haven’t started planning yet, now is the time to start. As an expatriate, you are in a privileged position, so make the most of the options available to you as early as possible. At the deVere Group, our consultants work with some of the leading investment houses and insurance providers. All our employees have been trained to provide the best advice and are familiar with the local knowledge/requirements of the region you live in/may relocate to. We can help you find a health plan and/or related insurance provisions that are right for you and your family.

About the deVere Group The deVere Group is the world’s largest independent financial consultancy group. We work with international investors and expatriates to find financial services products that suit their medium to long term requirements for investments, savings and pensions. With in excess of US$7 billion of funds under administration and management, deVere has more than fifty thousand clients in over a hundred countries. Our independence and ability to offer financial products that are tailor-made to fit an individual’s needs are behind our success. As a result we now have offices in over forty countries. You can find us in Abu Dhabi, Brussels, Dubai, Geneva, Hong Kong, Johannesburg, London, Mexico, Moscow, Shanghai, Tokyo and Zurich, amongst others. The advice we provide is free and without obligation.

PL ANNING F OR T H E W ORS T: ENSURING YOUR LOV E D ON E S A R E TA K E N C A R E OF


www.devere-group.com invest@devere-group.com

The companies below are part of the deVere Group: deVere and Partners (UK) Ltd is authorised and regulated by the Financial Services Authority (469151). deVere Recruitment Ltd (503055) are an appointed representative of deVere and Partners (UK) Ltd. deVere and Partners Investment Services (Pty) Ltd is an Authorised Financial Services Provider in South Africa. deVere and Partners (Belgium) BVBA is authorised by the Banking Finance and Insurance Commission (CBFA) in Belgium and registered on the intermediaries register under number 61476, category insurance brokers. The following group of companies operates under the same license in Belgium: - deVere and Partners (Cyprus) - deVere and Partners (Belgium) Limited BVBA, succursale Luxembourg S.a.r.l. - deVere Germany GmbH

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Guide to Health and Life Insurance Planning  

Investing in international accounts is no longer the premise of the rich and famous; all expatriates living abroad may now enjoy flexibility...

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