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FRONTIER MAGAZINE ISSUE 04 - AUTUMN 2013 FRONTIER MAGAZINE ISSUE 04 - AUTUMN 2013
have life protection in place should be right up
there with making sure your savings account
and pension are in place.
For most domestic citizens, obtaining life
insurance can be a simple task, but for expats,
thisbecomesmorecomplex.Manycompanies
headquartered in one jurisdiction will not
be prepared to cover overseas residents. If
you already have a policy, be sure to check
exactly the kind of cover it offers. Don’t take
for granted that you’ll be protected.
For those without a policy in place, or who
are in search of a new one, you may be
better off sourcing your life insurance from
an international company. Always check the
level of cover that is provided through your
employer, as there is a strong chance that
you will find that this won’t be suitable for your
family’s needs.
In Switzerland and France most financial
institutions that provide large loans or
mortgages will also provide insurance to cover
such debt. However, the fact that you have a
level of cover does not automatically mean
that it will be enough. It is important to check
and see what your family may require in such
an event and address any shortfall.
While you may arguably benefit from a lower
premium if you source your life insurance
locally, chances are you will be better off
working with an international company that
has experience working with international
workers. This is especially true if there is a
chance of a future relocation.
If something happens to you, your family
may find it difficult making a claim with a local
company. Or misunderstandings may arise
over the level of cover in different jurisdictions.
Life insurance is generally sought to make
life easier following the death of a loved one
who provided financially. So the claim process
needs to be as smooth and hassle-free as
possible.
Of all the financial issues that need to be taken
care of – such as savings, investments and
pensions – adequate life cover should always
take priority. Unfortunately, in my experience,
this is often overlooked by many international
financial advisors who seem overly keen to
put investment opportunities at the top of the
agenda.
As important as other aspects of financial
planning can be, one should never let them
take precedence over life insurance.
There are many forms of life insurance,
including Critical Illness. It’s not a case of one
size fits all or “I’ll just take that one”. To get it
right will require shopping around or having a
good advisor to assist you.
While it may not be the most obvious choice
when it comes to ordering your finances,
critical illness can cover you against a wide
range of illnesses, including heart attack,
stroke, and common forms of cancer, and
should not be underestimated.
Having peace of mind can prove priceless.
Gavin Pluck - European Director
Guardian Wealth Management
Tel: +41 22 710 7864
www.gwm-intl.com
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W
inston Churchill was a man of many
wise words but it is these words that
ring particularly true for me.
Most of us hear the word “insurance” and
think of cars, holidays and houses. Very few
of us think of our own lives and the security
of our families. But ask anyone what their
number-one priority is and the majority of
people will say the welfare of their family.
While we quite happily invest in our future and
that of our family through pensions, savings,
medical insurance and good education, I
often find that less importance is placed upon
protection products. It’s a worrying trend that,
while we seek to make the most of our money
through the good times, we can often find
that there is little provision in place for the
bad times.
As an international worker, having peace
of mind that your family – wherever it is on
the globe – is protected in the worst-case
scenario, cannot be underestimated.
Yes, there’s a part in each of us that thinks
“it won’t happen to me”. But if life teaches us
anything, it’s that things don’t always pan out
like we’d hoped. Having the right life insurance
in place means you can protect the well-being
and independence of those around you at
a time when they will be feeling the most
vulnerable.
I often ask clients why they don’t have life
insurance. Some simply make the mistake
of thinking that, because they’re relatively
young, fit and healthy, they’re not the “target
audience” for life insurance. After all, isn’t a
life policy for those at risk of something bad
happening?
Then there are those who don’t believe they
need it because they don’t yet have children.
And of course some just want to put off having
to incur extra costs in the belief that it’s a
waste of money until they’re older.
But these assumptions can be costly. If
there is anyone in your life who depends
on you financially, then surely there is a
moral obligation to try to ensure that they
are protected in the event of something
unexpected happening. When looking at
life insurance, you need to ask yourself the
obvious questions: Would your family be OK
financially without its breadwinner? How long
could they rely on your savings? Knowing the
answers to these questions will often be a
deciding factor on what solution is best for
you.
My mother, like many of her generation,
doesn’t like to give too much thought to the
unthinkable, and will usually deflect such
questions about life insurance with phrases
such as “Don’t worry, God will look after me”.
While that’s a nice thought and may well be
the case, I know that additional income would
have made her life much easier following the
death of my father.
We know that God works in mysterious ways –
but so do many insurance policies. That’s why
it will help to have the guidance and advice of
a financial adviser who can recommend what
is best suited to you.
Of course, relocation to a foreign country,
and having to contend with a new job, new
surroundings, new language and new culture
is undeniably challenging, and brings with it
many things to consider. But ensuring you
“If I had my way I would write the word ‘Insure’ upon every door of every cottage and upon
the blotting book of every public man, because I am convinced that with sacrifices which are
inconceivably small, families and estates can be protected against catastrophes which would
otherwise smash them up forever.”
Plan for the Worst,
Hope for the Best
By Gavin Pluck, European Director, Guardian Wealth Management