• zTermLifeInsurance Blog

  • Saturday, September 04, 2010



When you are working overseas on a short assignment, your financial sense sometimes takes a beating—the exchange rates are different, and you find the dollar stretches further than you thought it would. In such a situation, it is but natural to think about how much you should get term life insurance for.

To help decide that, remember that any life insurance, and especially term life insurance, is meant to ensure the minimal financial impact of one’s demise. Also remember that term life insurance is of maximum utility to those who are under 30 years of age. So, realistically, you must calculate not just “how much you are worth” but “how much your family will need” to be safe financially.

To calculate that, determine the annual expenses of your spouse and children, add any mortgage payments that are ongoing, an estimate of future expenses such as college education, and add a small amount for incidental expenses. You’ll need to also adjust the rates keeping in mind a minimal inflation rate, and subtract what your spouse will contribute to the expenses.

The figure you arrive at will be a rough calculation of how much term insurance you will need, in dollar terms. Whether you are living at home or as an expat, plan for absolute terms, and not for the currency of the country you live in now.
Many a time, term life insurance, especially for expatriates, is fraught with many questions: Do I really need it; I’m only abroad for a couple of years? How much should I get term life insurance for? How long should the insurance be for?

One of the questions that is usually glossed over when purchasing term life insurance is usually: Who gets insured? It is assumed that insurance is only for the primary breadwinner of the home, so that his/her absence will not affect the financial status of the family much.

However, it is important to think about the value of the work that the other spouse does at home. Let us say he/she takes care of the home and the children. When he/she passes on, there will now be extra costs in terms of childcare and household work, for which people may need to be hired.

This care can run into thousands of dollars a month, and so, it is important to remember the financial impact of the demise of both the employed and the non-employed spouse at home. Also remember that term life insurance is cheaper than whole life insurance and works well for periods in life where debts are maximum.


Expats in their prime of life think that some policy that covers their health should suffice—after all, they are not going to be working in a dangerous job, or in a strife-torn country. However, remember that term life insurance is of prime importance regardless of where you are posted abroad.

If the unthinkable happens, let’s say because of an accident, your dependents might be eligible for Accidental Death and Dismemberment benefits, but remember that this payout depends on whether the accident qualifies as “covered.”

Also, ADD benefits are typically in the $50,000 range, and might not be sufficient to cover the financial security of your family after you pass on. Term life insurance must be purchased keeping in mind the long-term financial goal and security needed for your family. If you have a mortgage on your property, then term life insurance becomes nearly a necessity.

Term life insurance can be purchased for a variety of plan periods, and it is the cheapest insurance available in the market. Whole life insurance is a more complex undertaking, and you might want to use term life insurance especially if you are young and restless.


Term life insurance is a great option for expats who are looking to provide a stable financial future for their family in case of their demise when living and working abroad. One such plan, the IC+ Term Life Insurance plan, is a good option to cover those who live and work outside the U.S.

To apply, the plan requires three main forms: the application, the financial questionnaire, and the medical questionnaire. The application for insurance is available online, and must first be filled by the plan applicant.

The financial questionnaire is required only if the total sum assured is $350,000 or higher. The financial questionnaire to be filled will depend on the purpose of insurance, which will be determined by the company only after the receipt of the application form. Alternatively, a financial questionnaire can be requested in advance.

The medical questionnaire, completed by a doctor within 30 days of the application date, is required only if the sum assured is above a certain amount. If the plan holder is aged 35 or under, the limit is $225,000. The amount decreases with increase in age, and a medical questionnaire is required for all applicants above the age of 65.
It’s over a month into the new year; have you stuck to your resolution to set up a plan for your family’s future? Term life insurance should be one of your first steps in that planning process.

There is no time like the present to think about your family’s future. If the unexpected happened and you passed away, how would they pay for the mortgage, auto, and credit card bills you’d leave behind? Those add up to quite a bit of money, and you don’t want to burn your entire savings on those expenses.

Term life insurance gives you an affordable way to make sure they can pay for whatever bills may come your family’s way if an accident or illness should suddenly claim your life. It can also be used to fund funeral costs, which can be extremely expensive in and of themselves.

Taking care of your family’s future is more than just a new year’s resolution; it’s an everyday priority. Term life insurance will offer you and your spouse peace of mind in knowing that the loss of your income will not lead to the loss of your house, your car, or the other items you hold dear.


Did you remember to rent out your home? How will your finances work? Will you have a place to live when you go abroad? The to-do list of a soon-to-be expat may seem endless. To this is added the question of term life insurance: Will I be able to get term life insurance in my new home country?

While it may be possible to receive some term life insurance in your new country of residence, it is almost always a better deal to purchase term life insurance from the United States. The insurance companies offering the policies are probably more reliable, keeping in mind U.S. regulations.

However, term life insurance is usually not on top of people’s checklists. More pressing concerns such as banking, housing, renting out the current residence, and the operability of electronic gadgets are among some of the concerns that expats face when they prepare to go abroad.

These are all valid points, as is the question of how children will adjust in a foreign country. The loss of friendships is among the top concerns of children and while this may seem trivial to adults, it is important to accord the problem some attention. However, it is crucial that term life insurance is not ignored by the expatriate.

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