Living Abroad? Here are 7 Reasons Why You Should Buy Life Insurance
Life insurance is never a pleasant topic for some of us. It’s kind of grim to talk about it, and contemplating our mortality and the people we will leave behind is truly scary. However, if you have dependents relying on you financially, it’s scary to think about how they will live without your financial support. This is when life insurance comes in. Life insurance helps our dependents be financially prepared when they’re not in the world anymore.
This is especially true for people living abroad. Most people living abroad are alone, which is lonely and scary as they have no one with them when something dangerous happens. This makes them more vulnerable, both physically and mentally. If you’re one of them, you know it’s not easy, but we must persevere for our loved ones.
It’s daunting to think about them being left alone with your support, which is why having life insurance abroad is essential, especially for your peace of mind. But if you’re not convinced, here are reasons you should have life insurance abroad.
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You Have Kids
Life insurance is a good way to keep your family financially secure, but how does life insurance work? In essence, it’s a financial strategy to make your family be prepared for any financial problems when you’re gone, especially when you have dependents.
That said, having kids is perhaps the most common reason people living abroad buy insurance. If you have children left in your country, then as parents, we need to ensure their education, housing, and other life needs are well met even if we’re gone. In addition, being financially secure for the future is not a pipe dream as you can do that with life insurance. In short, buying life insurance is a selfless act of love for our kids, grim as it may be.
You Have a Financially Dependent Partner
While many people nowadays are both working, we can’t deny that some couples only have one person working and the other is not working by choice or is not allowed to be brought with you abroad for work.
Also, there are times when both of them are working, but the other makes more than the other, or both are working but are still financially dependent on one another. Regardless of the situation, it would help to still buy life insurance. The general rule here is that the more you make, the more life insurance you should buy, especially when you’re living abroad and your partner is left in your country.
Your Company Requires It
One reason why expats need to buy life insurance is when their company requires it. This is for various reasons, but the most common is when a company will be hit severely when something happens to a valuable employee living abroad.
You Have Estate Taxes
Most people living abroad often don’t have any tax obligations while in another country or are living in one that doesn’t have many tax obligations. However, even while living abroad, a person is still not exempted from paying their taxes in their home country, especially estate taxes. So if you’re still paying your taxes in your home country and don’t want to bother your family members to pay them if you’re gone, then having life insurance is the way to go.
You’re Constantly on the Move
Having portable life insurance with you is wise if you’re a businessman or an employee constantly on the move due to work requiring you to change addresses regularly. Of course, you can buy a new insurance policy every time you move, but it can be very expensive. Luckily, there is portable life insurance you can buy that you can carry with you from one country to another without any issues.
Your Employer Can’t Afford Life Insurance For You
Most companies nowadays have group insurance policies with multiple incomes for life insurance. However, some companies don’t include their ex-pat employees. This doesn’t sound very pleasant, but it’s true as buying life insurance for employees working abroad tends to be more expensive than buying ones for locals. Luckily, there are a lot of companies that are offering international life insurance for expats to buy. It might be expensive sometimes, but at least your family is financially secure for the future.
Your Employer’s Expat Life Plan is Limited
However, if you have a company that offers expat life plans, then you’re one of the lucky ones. However, most of the time, these policies only provide a flat amount, which is not enough for your insurance needs, like covering your family obligations at home. That said, you can pad this out by buying a separate life insurance plan to meet all of your needs. There is even supplemental life insurance if you don’t want to buy a new life insurance plan.
Living abroad is exciting and scary at the same time. What’s scarier is what will happen to our family when we suddenly have our lives cut short in our time abroad. It may be scary, but we must persevere for our family. And if you want their future to be secured financially, then having an international life insurance plan is the way to go.
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