• zTermLifeInsurance Blog

  • Thursday, July 29, 2010

Whether you are residing overseas permanently or temporarily, whether you are staying for professional reasons or just to experience a new culture, it is important to protect your financial interests and those of any dependents in your life. International term life insurance provides a method of financial protection any international resident can trust.

If you lose your life while overseas, your international term life insurance plan will provide financial security to your beneficiaries. It can be used to pay large outstanding bills, as well as smaller ongoing expenses. Can your family survive without your income to support them? The answer is likely no, which is why the support provided by term insurance is so important.

In addition to the everyday bills that most people have - mortgages, car payments, utilities, etc. - international residents who pass away overseas generate additional uniques costs. One such cost is repatriation. Your family will likely want your remains brought back to your native country, and that can be quite expensive. International term coverage will assist with that cost.

You will determine the total amount of coverage provided to your beneficiaries, so take these types of expenses into account when purchasing your plan. You will want to have enough coverage so that your family does not have to worry about financial problems in your absence.


Term life insurance plans are increasingly being seen as the de facto plan for life insurance needs. The payout options for term life insurance are also becoming more and more nuanced, and they are no longer confined to a one-time payment.

Apart from the lump sum payment option, most term life insurance plans also feature an annuity method of payment. This means that the death benefit will be paid annually to the beneficiary. There are several types of annuity payments that are available. All insurance companies may not offer all the options, but it worthwhile checking.

Life income annuity payments are payments made for the life of the beneficiary. It can be with a certain period, in which case the payments are locked down for a certain period, and if the beneficiary passes on, the payments are made to his/her beneficiary. This is typically the case for insurance that benefits a spouse and thereafter, the children. Regular life income annuity payments are made to the beneficiary until he/she lives.

In last survivor annuity payments, which are valid only when there is more than one beneficiary, annual payments are made until the last beneficiary passes on. There are a few more annuity payout methods that term life insurance plans feature. It is important to take the advise of a financial adviser if you are the beneficiary of a term life insurance plan.
Term life insurance is one of the safest, most important investments you can make to protect your family in the event of a tragedy. You may already realize the value of term life insurance, but do you know what questions to ask when buying it?

A good first question to ask is simply "how much coverage do I need?" This may be a simple question, but a lot will go into answering it. You want to make sure you consider large debts like mortgages and car payments as well as smaller monthly expenses like utilities and even groceries. The pain of losing your income will need to be offset through your life insurance package, so you want to take careful consideration to buy enough coverage.

Next, find out if any circumstances are not covered under your policy. You certainly don't want an issue to arise in which you have perished but for some reason your family cannot collect the benefits. That will only serve to create more frustration for them.

Finally, ask whether your policy applies to international travel. If you are staying overseas, you will want term life insurance coverage that will not only pay ongoing bills but cover things like repatriation of remains.


While purchasing term life insurance is one side of the coin, the other side of the coin is receiving the benefits. This is often an overlooked aspect of term life insurance, as insurers and planholders both tend to ignore this aspect of it. However, it can be very important to the beneficiary.

If you are a beneficiary of a term insurance plan, the insurance company will likely ask you the method of death benefit payout you would like. Some companies allow the plan holder to set this as well. There are two basic types of payouts: Lump sum and annuity payments.

A lump sum payment, as the name suggests, pays out the death benefit in one go. Most people prefer this mode of payment, due to various reasons. Typically, people with mortgages to pay off or those who are hesitant to deal with insurance companies opt for this method of payment. It is hassle-free and simple, but comes with its own set of problems.

For one, the lump sum payment presupposes that the money will be invested wisely elsewhere. That may not be the case if the beneficiaries are minors, or otherwise unable to make financial decisions. Also, although the death benefit is tax-free, the interest on the lump sum is taxable.
For anyone with a spouse or children, providing for those dependents is the most important priority.This is especially true in the event of a tragedy, such as the loss of your own life. Term life insurance makes for the best available way to protect those people who matter most to you.

There are many different ways to provide for your family's well-being should you lose your life. From simple savings accounts to risky stock investments, there is no shortage of ways to try and protect your spouse and children during what will be a difficult time emotionally and fiscally.

But term life insurance is the most stable, most lucrative way to protect your dependents. You will determine the level of coverage you want upfront, so you do not need to worry about negative fluctuation as you do in the stock market. With stocks, you could invest a certain amount and wind up with far less than you started with. On the other hand, with a savings account you avoid that volatility, but you also stand to see a much lower return on your investment.

With term life insurance your dependents will receive far more than you invested. And you can customize that level of coverage to ensure they can pay off both their largest debts as well as smaller ongoing bills. This type of insurance provides for the most flexibility as well as the most reliable source of income for your dependents.


Term life insurance plans usually are purchased, filed, and ignored. However, plans that cater toward expatriates can offer additional services that will help navigate the new country and culture better. One such plan, with several assistance services is the IC+ Term Life Insurance plan.

Let’s say a plan holder, David Ardle, has suffered a medical setback. While the IC+ Term Life Insurance plan does not offer any monetary benefits to cover the treatment, it does offer several supplementary benefits. David can, for example, receive medical referrals from the travel assistance services offered by IC+ Term Life Insurance.

Also, the assistance services extend to dispatch of a physician to where David is, as well as making emergency travel arrangements for family members to join David, if required. A simple phone call is usually enough to initiate these assistance services. If in a country where English is not spoken much, translation services are also arranged.

The plan also offers assistance in replacing prescription drugs with locally available brands. However, remember that David is likely to also have medical insurance, and it is important that the care given by physicians is covered by David’s medical insurance plan.

Page 2 of 15 pages  <  1 2 3 4 >  Last »



Categories

Recent entries

Archives

Features Listings
<< July 2010 >>
S
M
T
W
T
F
S
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

McAfee Secure sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

Page copy protected against web site content infringement by Copyscape