Expat Insurance Consumer Guide

Expat Peace of Mind Insurance
A Consumer Guide

| page 2 |Expat Peace of Mind Consumer Guide
Dear Reader,
Choosing the right kind of insurance protection isn’t easy.
That’s because you are bombarded with advertising, unfamiliar jargon, confusing claims and
simply bad information. Insurance products have in the past, and continue to be, mis-sold and
sales people sometimes resort to high pressure sales to sell you products which are not adapted to
your own unique needs. Peace of mind insurance provides vital protection for any family but at the
same time the terms, conditions and small print can be difficult to interpret and match with your
requirements.
So, how do you ever find the right cover for you and your family?
You start by reading this consumer guide. In this fact-filled booklet, you’ll discover how the different
types of peace of mind insurance can guarantee the financial wellbeing of you and your family in
the face of unfortunate unforeseen life events.You will find clear explanations of each type of peace
of mind insurance and the issues to consider when deciding the right plan for your family.The
guide also reveals some sobering statistics and case studies.You will also find out how to self-assess
your life insurance needs with a handy checklist as well learning the biggest misconceptions and
mistakes involved with personal insurance policies.
We wrote this guide to help you better understand personal protection insurance in all its guises.
Ensuring you have the right cover is vital to the future wellbeing of your family and your peace of
mind.We hope this guide will provide some clarification and assist you in making an informed
decision when determining your insurance needs.
At Infinity we are dedicated to educating and informing expat consumers about insurance
protection and if you have any questions you’re invited to contact us by email at enquiries@
infinitysolutions.com or to arrange a free, no obligation consultation with one of our qualified
professional advisers.
Kind regards,
Trevor Keidan
Managing Director
Infinity Financial Solutions
infinitysolutions.com

Contents
This table of content is hot linked to allow you easy access to any section of interest.
A letter of welcome
Peace of mind insurance and financial planning
The different types of peace of mind insurance
• Medical insurance
• Life insurance
• Term life insurance
• Whole life insurance
• Critical illness insurance
• Income protection insurance
The importance of peace of mind insurance cover
Case studies
• Case study 1 – Jeremy’s story
• Case study 2 – Kim’s story
• Case study 3 – May’s story
How to assess your life insurance needs – a handy checklist
The importance of regular review
How a broker can help you
The six biggest misconceptions about POM insurance
Eight mistakes to avoid when choosing POM insurance
Four important questions to consider with employer-based insurance schemes

Peace of mind insurance and financial planning
Peace of mind insurance is the rock on which the security of any family is built
Financial planning is the process of meeting your life goals through the proper management of your
finances. It involves putting in place a strategy to reach those goals, whether they are saving for your
retirement, investing in an education fund for your children or purchasing your own home. These
aspects all fall into the category of wealth creation and growth and are a key part of any financial
plan. However, there is a second aspect to a sound financial plan which is even more important and
that is protecting your existing assets and financial resources and ensuring the future wellbeing of
your family.
We spend much of our lives building up our assets and accumulating things of value such as cars,
homes, savings and investments. Many of us make the foolish assumption that because we are
working and can afford those things now, that we will always be able to do so and we neglect to
protect our wealth. As millions have found out too late, that is not necessarily the case.
Your most valuable asset is not your car or even your home; IT IS YOU!
It is your ability to earn a living and provide for your family now and in the future. All your plans
and dreams for your family - owning your own home, a university education for your children and a
comfortable retirement – are based on the assumption that you will be able to earn, provide for and
support them until you retire or they have the ability to support themselves.
Speculation
Short Term
Investing
Medium Term
Saving
Cash Property Retirement
Life Health Income
Protection & Peace of Mind
The foundation upon which solid financial planning
goals can be achieved.
Wealth
Protection
Wealth
Accumulation
Financial Planning Pyramid

But what if you lose that ability to earn a living?
How long could you survive without a monthly salary before financial disaster ensues?
Peace of Mind insurance is a catch-all term for the different types of insurance which protect your
wealth by safeguarding you and your family against the potentially damaging financial impact
of unforeseen life events.That could be anything from loss of income due to an accident or illness
which would prevent a family member from working, to the death of a family member. For the
purposes of this guide the term,‘Peace of Mind Insurance’, covers four different kinds of insurance
policy: life insurance, medical insurance, critical illness cover and income protection.
Although usually optional, it provides the foundations from which all your other savings,
investments and assets are based and can grow.Without protecting your wealth and your ability to
generate wealth or income you are like the archetypal man building his house on the sand – your
property, investments and pension could collapse in the blink of an eye.

The different types of peace of mind insurance
In this section we take a jargon-free look at each type of peace of mind insurance, explaining what
it is, how it works, why it’s important and what to look out for.
Medical insurance
What is it?
Medical insurance protects against the risk of incurring medical expenses. If you or any member of
your family covered under your medical plan becomes sick or incurs an injury, the insurer will cover
the payments for treatment subject to any predefined exclusions.
How does it work?
When you take out a medical insurance policy, the provider will ask certain questions to establish
the medical histories of those to be covered and use that information to work out the monthly
premium which you will have to pay. Obviously, the older you get the more likely you are to need to
claim on the policy and the higher the premiums are likely to be. Similarly, if you have a pre-existing
medical condition which involves ongoing costs, it will either be reflected in a higher premium or
any treatment pertaining to the condition excluded from cover.
Why is it important?
Life is unpredictable and your medical requirements can change overnight.The cost of medical
treatment is high and has consistently risen ahead of inflation for many years. Increasingly
overloaded state systems are less and less likely to pick up the tab and expats are unlikely to be
eligible for free treatment in the country in which they are resident.
You just never know when you might need costly treatment that would be prohibitively expensive
if you had to pay for it yourself. Purchasing medical insurance transfers this risk to the insurer so
no matter what happens, you will have access to the most effective treatment and the best medical
facilities available. It is just the same as transferring the risk of being burgled to an insurer, only your
health is far more valuable than the contents of your home.
Having a comprehensive medical insurance policy in place offers you peace of mind, sparing you the
worry of how you will deal with the financial implications of any medical care you and your family
might require. International medical plans generally provide the insured with greater choice of
hospitals, doctors and medical treatments than would normally be available.

What are the issues to look out for?
This is a checklist of questions to consider when you are choosing a medical insurance policy:
• Geographical coverage – are you covered in all the locations where you and your family will live,
work and travel?
• Do you want to include or exclude USA cover?
• Is the policy local or international? Generally local policies are less expensive but have reduced
benefits, lower payment ceilings and a more limited geographical range.
• Pre-existing and chronic conditions – does the plan you are considering offer cover, restricted
cover or full cover for a stated period. Be clear what coverage is offered.
• Is there a moratorium option if you have a recent pre-existing condition that is no longer an
issue?
• Is the policy individually or community rated? This relates to how premiums are calculated. Is the
insurer looking at you as an individual or as part of a community? If it is a community how does
your claims/health history rate against the community to which you belong?
• If you or a member of your family have got a pre-existing condition look for a Medical History
Disregarded (MHD) policy.These are usually available as part of a corporate or group plan.
• Choice of hospital and treatment location – do you have free choice of where you can seek
treatment? Are repatriation and treatment in alternative countries covered?
• Do you need or want cover for outpatient care? (for example a GP or specialist care)
• Are you covered for emergency evacuation for yourself and a companion?
• How much are the annual deductibles or excess? (That is the amount of any claim you will have
to cover out of your own pocket and electing to pay nil is sometime offered as an option).
• What is the maximum pay out stated in the policy and does this differ depending on the type of
claim?
• Does your insurer offer direct settlement to the healthcare provider or do you have to pay first
and claim back costs?
• If you are transferring from a group scheme to a personal policy does the policy offer continuous
transfer terms with exactly the same benefits and premium?
• Is there flexibility with regard to premium payments – can you pay monthly or annually and
which would suit you best?
• In what currency can you pay the premiums?
• Are you covered for alternative or complementary medicines?
• What are the terms with regard to age limits and renewability?
• What provision is there for emergency medical advice and treatments? Many insurance providers
provide hotlines and other support services.
• Are there any additional benefits such as free health checks? Ask your provider for information on
availability and frequency.
• If your employer offers a medical plan does it provide adequate cover for you and your family?
Top up policies are available to bridge the gap between existing cover and extended needs.
• If maternity cover is important be aware of waiting periods as they can vary for new plan holders
(usually 10-12 months).

Life insurance
What is it?
Life insurance is a means of protecting your loved ones financially in the event of an untimely death.
It compensates them for the loss of your income by paying them a lump sum (or regular payments)
to mitigate the financial impact of your passing away. Life insurance is invaluable in maintaining
financial stability for a family at a time of great stress. Immediate expenses can be covered, debts
paid off and provision made to take care of your regular outgoings, particularly those on large debts
such as a mortgage, but also day-to-day expenses, education costs, childcare requirements and other
loans.
How does it work?
There are two main types of life insurance – term insurance and whole of life insurance.
Term life insurance
Term Insurance offers protection for a specified period of time, usually in a plan lasting from ten
to thirty years. When your plan expires, you may, subject to underwriting considerations, renew
it for another term or, in some circumstances, convert your plan into a permanent insurance plan.
However, be aware that premiums may rise in both cases.
If you die, the named beneficiary (or beneficiaries) on your policy receive the face value of your
plan and this figure is directly related to how much your premiums cost.The most important
considerations when choosing this type of plan are the face value, the premium and the duration of
your term coverage. Obviously the face value will be linked to premium and you will have to balance
your requirements with your budget.
Term insurance is often used to cover specific temporary needs, for example mortgage repayments
over the term of a home loan. If over the course of the term the policyholder should die, the
insurance will pay off the remaining debt, ensuring that your loved ones left behind don’t have to.
Once the debt has been paid off, the policy terminates or can be terminated.
Whole of life assurance
Whole of life assurance provides coverage for the policyholder’s entire life. It only expires once the
policyholder dies. For this reason, premiums are considerably higher than for term insurance but
they remain fixed at a predetermined rate as long as you continue to pay the premiums. Needs
covered by this kind of insurance include; supplementing a spouse’s income if you pass away,
funeral expenses, capital gains tax payable upon your death (Whole of life assurance is frequently
used to protect against inheritance tax liabilities) or to leave a legacy.
Whole life insurance policies also offer a savings component that accrues cash value over time and

can be used to offset future premiums in the later years and also provides a surrender/ encashment
value.The portion of your premium that is invested often generates a cash value with interest
and therefore works a bit like a savings account. As a result, it is important to choose an insurance
company with a proven track record of financial stability to safeguard your savings. With a whole
life policy you can dip into your savings if you need to by taking a policy loan from the cash value
of your plan. At the time of death under a whole life plan, your beneficiary will be paid the fixed
amount that is the face value of the plan and may also receive an additional payment in respect of
the investment element depending on the structure of the policy. If at any time you wish to cancel
the policy, you can redeem the cash value, also known as the surrender value.
Variations of whole life insurance include universal life insurance which offers flexible premium
payment while accumulating cash value at a quicker rate than standard whole life plans and
variable life insurance which enables the policyholder to allocate a portion of their premium to
certain investment funds specified in the policy.This kind of policy is akin to investing in a mutual
fund and offers certain tax advantages to the policyholder, although there is also risk involved and
these policies must be sold with a prospectus and are regulated by the relevant financial services
authority.
Why life insurance is important and what can it be used for?
In spite of the fact that we don’t want to face the thought that we will get sick or die, the truth
is that millions do every day. Not one of us can guarantee that we will remain healthy enough to
provide for our loved ones for the rest of our/their lives.
If you or your spouse become sick or pass away, the right life insurance will ensure that those left
behind can continue to enjoy the same standard of living, stay in their home and remain at the
same schools.You can also factor life insurance into your inheritance tax plan to safeguard those left
behind against punitive capital gains tax payments.
What are issues to look out for?
This is a checklist of questions to ask when you are choosing a life insurance policy:
• Is term insurance or whole life insurance more appropriate to your needs, or do you require a
combination of polices?
• Make sure you correctly nominate your beneficiary to make sure any claim goes to those as you
intend.
• Writing the the policy in trust is often advised as this allows the proceeds to pass to your
beneficiaries outside of probate so that there are no extended waiting periods. Probate can often
take 6-24 months to be resolved.
• Do you need a single policy to cover just yourself or joint life policy for both yourself and a
spouse?
• Are there additional benefits available such as annuity payments or tax advantages?
• Do you need the policy to be local or portable? Bear in mind that many policies may not be valid
if you move country.

• How much cover do you need? To work this out you will need to assess both your fixed liabilities
(mortgage,children,loans/debts) and your income liabilities (salary x number of years left to work).
• How long do you need cover for?
• Is there flexibility to increase or decrease cover?
• Do you need currency flexibility?
• Do you need payment flexibility?
• If you have group cover via your employer, does this leave you vulnerable? With group cover you
are not in control as the policy is with your employer.You lose your protection if you lose your job
or your employer cancels the policy.
• Do you practice any dangerous activities which increase your risk of accident or death and are
they declared and covered?
• Do you have a medical condition which may reduce your life expectancy which should be
disclosed to your insurer?
• Is there a family history of cancer, stroke or diabetes which should be disclosed to your insurer?
• Will the insurer require you to have a medical?
• Could whole life insurance be useful as part of an inheritance tax plan to cover capital gains
payable by your beneficiaries upon your death?
• Are your premiums fixed and guaranteed or could they increase or decrease over time?
• Are there any hidden fees which you should be aware of?
Each individual’s life insurance requirements will be different which is why it is prudent to contact a
professional financial adviser who can help you work out your exact needs and assist in choosing a
policy or combination of policies suited to your unique situation.
Critical illness insurance
What it is?
Critical illness cover is an insurance policy which will pay out a tax-free lump sum if you are
diagnosed with one of a list of specific medical conditions or injuries listed on the policy. Usually
these would include cancer, stroke, heart attack and debilitating illnesses such as multiple sclerosis.
Most policies will also pay out if you are permanently disabled as a result of either injury or illness.
How it works?
Should you be diagnosed with a specific critical illness as defined by the plan, you make a claim and
receive a one-off lump sum. Most insurers currently list 53 conditions on their list of cover and it is
regularly updated. Critical illness cover only pays out once, at which point the policy is terminated.
Most polices will not cover you for any existing conditions which you knew about when you took
out the policy and will apply an exclusion to this effect.The younger you are the less expensive your
critical illness policy will be so it makes sense to take out a policy when you are young. Insurers look
particularly at family history, smoking and body mass index when assessing the risk so expect to
pay more if you have a family history of cancer, stroke or heart disease, if you smoke or if you are
overweight.

Why it is important/what can it be used for?
Finding yourself unable to work can quickly deplete any savings you have. Critical illness cover
provides a financial cushion which can be used to cover those living expenses which don’t go away
just because you are ill – mortgage payments, utility bills and general living expenses – enabling
you to keep your savings intact while maintaining the standard of living that you and your family
enjoyed prior to your illness.
A lump-sum payout may also be invaluable in giving you access to expensive medical treatment or
in making necessary changes to your home should you be permanently disabled.
Having the peace of mind of knowing that your living costs are covered if you are ill enables you to
focus your attention on getting better. If you fail to recuperate properly from an illness, you could
find yourself in a vicious circle of getting ill, taking time off without pay, going back to work too early
and becoming ill once again.
This is a checklist of questions to ask when you are choosing a critical illness insurance policy:
• Are you covered at least for the conditions which give rise to the most claims, namely cancer,
heart attack, stroke, multiple sclerosis, benign brain tumour and coronary artery bypass?
• Do you have any pre-existing conditions which should be declared to the insurer?
• If exclusions apply, is it better to accept them and not have cover for certain conditions or to
accept a higher premium which covers you?
• Is it a good idea to have a‘waiver of premiums’clause which means that if you are unable to
work through ill health your premiums will be paid for you?
• Would fixed or renewable premiums suit you better? With fixed premiums you have the security
of knowing how much you will be paying in the future. Reviewable premiums may be less
expensive in the short term but will rise as you get older and present a higher risk.
• Do you want to link the cover to specific liabilities e.g. to pay off a mortgage?
• Does the policy cover you for Total Permanent Disability i.e. if you are disabled and unable to carry
out your job, regardless of the illness you are suffering from?
• Could your occupation affect any Total Permanent Disability cover in your policy?
• Do you want to include an indexation clause which increases your cover each year in line with an
index (e.g. the retail price index) so that payouts increase in line with inflation.
• Is partial cover included for less severe illnesses?
• Does the policy allow benefit flexibility with the option to increase or decrease cover according to
your circumstances?
• Does the policy allow term flexibility with the option to alter the duration of your cover?
• Would you benefit from guaranteed insurability options which allow you to increase cover at
particular times without needing a further medical?
• Are there any additional features such as discount for exclusions, critical illness buyback, benefits
such as annual health checks or claims support helplines?

Income protection insurance
What it is?
Income Protection Insurance is an insurance policy designed to replace lost income in the event of a
long term illness or injury/accident.
How it works?
Income Protection Insurance differs from Critical Illness Cover in that rather than receiving a lump
sum the insured receives a percentage of their gross salary or take-home pay on a monthly basis.
These benefits are received until either you are recovered and can work again or until retirement.
Payments are usually tax-free.
Why it is important/what can it be used for?
State-offered statutory sick pay or incapacity benefits are usually significantly below average
earnings and will not usually enable you to sustain the standard of living you and your family are
accustomed to. Furthermore, as an expat you may not be eligible for state benefits either in your
country of residence or your home country or benefits may simply not exist at all.
If you become unable to work due to illness or injury, regular payments from your income protection
policy will enable you to cover your ongoing living expenses including payment of your mortgage,
school fees and so on.
• It may be possible to take out a waiver of premium option which means that you don’t have to
cover premiums if you are receiving benefits from the policy.
• Most plans have a three or six month deferment period before payments are made.
• Usually payments cover a maximum of 75% of salary for two years and then will continue to pay
if you are medically unfit to do a job that you are reasonably qualified to do.This is a contentious
point which is perhaps best explained with an example: a lawyer has a serious accident and
is paralysed and cannot work. His Income Protection Policy pays out for 2 years and then he is
reassessed. If he could reasonably work as, say a legal paraplanner, then the insurance may stop
however, if the only job he could do is flipping burgers then the payments would continue.

The importance of peace of mind insurance cover
Most of us would consider it folly to fail to insure our car and our home and these insurances are
often a condition of receiving a finance deal for a car or a mortgage.We value these things and fear
the costs of repairing or restoring them if anything was to happen to them.
Yet many people fail to insure something far more valuable, namely their ability to live a
comfortable life and provide for their family if they can no longer work due to illness, incapacity or
death. Your capacity to make a living is your most valuable asset and it is nonsensical not to take
out peace of mind insurance to cover it.
If you compare the value of your car against your future earnings, you’ll see just why it is so
important.To take an example, if you are a 30 year old earning $50,000 a year and become
incapacited so you can no longer work, your potential earnings over the next 40 years are $2 million,
not even taking into account future pay rises, other benefits or inflation.
Unfortunately, critical illness and sudden death are more common than most of us think.Without
cover, you are leaving yourself and your family extremely vulnerable to the negative impact that
either of these events would have on your finances and lifestyle.
Let’s look at some stats and facts:
• There were 8.2 million cancer deaths worldwide in 20121
.
• 14 million cases of cancer were reported worldwide in 20121
.
• Cancer will strike more than one in three of us during our lifetime2
.
• Every two minutes someone in the UK is diagnosed with cancer2
.
• Cancer is the biggest source of claims for both life insurance (46%) and critical illness (66%) 3
.
• Heart disease is the most common cause of death in the UK4
.
• 1 in every 4 deaths in the US is due to heart disease5
.
• Stroke kills almost 130,000 Americans each year—that’s 1 out of every 19 deaths6
.
• On average, one American dies from stroke every 4 minutes6
.
• There are approximately 1.1 million stroke survivors living in the UK7
.
• In 2013, an estimated 2 million Americans were declared bankrupt due to unpaid medical bills8
.
• One child in 290 loses a parent before they’ve finished full-time education9
.

Case Studies
Case study 1 – Jeremy’s story
Jeremy was 27 and healthy when he was involved in a car accident in Hong Kong and broke both legs
and his pelvis. He was hospitalised for two months for extensive reconstruction surgery and required
further outpatient treatment for 12 months.The total cost of his treatment came to over HK$1.2 million
(US$155,000). Jeremy did not have a medical insurance policy and had to cover the cost out of his own
pocket. He was fortunate to have an inheritance to fall back on – this had been set aside as a deposit to
purchase his first home but those plans have been put on hold.
Case study 2 – Kim’s story
Kim’s husband, Ben, contracted an aggressive form of lung cancer in 2013 and he died suddenly age 38
while working as an expat in Malaysia. Kim was left to return to the UK and bring up her three young
children alone. As Ben had no life insurance in place, Kim was forced to sell their family home and rent
a small apartment for her and the children. Prior to Ben’s death Kim was a stay-at-home mum but
found herself forced to go out to work. Having been out of the employment market for many years she
was only able to secure a job paying below average wages.The family continue to struggle to make
ends meet.
Case study 3 – May’s story
May was devastated to be diagnosed with aggressive breast cancer at the age of 41. Fortunately her
cancer was treatable although she had to undergo a lengthy and draining six month programme of
chemotherapy combined with radiotherapy. May was so ill that she could not continue to work in her
role as an architect while the treatment was ongoing.
Fortunately she had taken out a critical illness policy which paid out a lump sum of US$142,000.This
enabled May to keep up repayments on her mortgage and cover all her bills and living costs, giving her
the time to rest and recuperate. One year later May’s cancer is in remission and she is back at work full-
time, having been able to dedicate all her time to getting better.

How to assess your life insurance needs – A handy checklist
Use the checklist below to make an assessment of your life insurance needs.This is not an
exhaustive list but it covers the most common costs that people take into consideration. Equally
there will be things on the list that may not apply.

Potential Needs Estimated Cost
• Immediate costs ............................................................................
• Repatriation of family to home country ............................................................................
• Outstanding debts: ............................................................................
• Credit Card ............................................................................
• Bank Loans ............................................................................
• Car Loans ............................................................................
• Overdraft ............................................................................
• Annual day to day living costs for family ............................................................................
• Multiplied by how many years ............................................................................
• Outstanding mortgage balance ............................................................................
• Future home purchase ............................................................................
• Future family health care/medical insurance ............................................................................
• Children’s schooling ............................................................................
• Children’s tertiary education ............................................................................
• Education/retraining to enable spouse to return to work ............................................................................
• Life insurance policy for spouse ............................................................................
• Other insurance ............................................................................
• Spouse’s retirement/pension ............................................................................
• Other ............................................................................

The importance of regular review
Once you have all your peace of mind insurance in place, it is important to review it on a regular
basis.This should be at least once a year to make sure your insurance plans continue to meet the
requirements of you and your family. As life changes, so do your needs and a failure to review them
could leave your family vulnerable if you become ill or die. Modifications may also be necessary as
your plans for the future change and develop, or as you pay off mortgages or other loans.
As big life changes occur you will need to adjust your insurance accordingly, in particular after the
following events:
• Taking out a mortgage on a new/bigger house
• Getting married
• Getting divorced
• Having a child or grandchild
• If you have a second family (a new spouse or children)
• A change in health
• A change in your employment situation
• Desire to send your children to private school/university
• If the beneficiaries of your policies change for any reason
• Moving to a different country
• If you inherit a significant amount
• If you have a business which becomes successful
• If you have significant inheritance or tax liabilities
• If you need to care for elderly relatives
How a broker can help you
As with any big financial commitment, it is advisable to take advice from an expert who can help in
the following ways:
• Assessing your needs to ensure that your assets are adequately protected
• Finding you the most competitive rates
• Explaining clearly all the terms, conditions and provisions of the policy
• Researching and assisting you in selecting policies which adequately meet your requirements
• Providing an ongoing service by updating any changes if a new beneficiary is added, reviewing
and updating your polices.
• Providing assistance should you need to make a claim
Most agents are paid a commission from the insurance company whose product you buy so you
won’t pay any extra for employing their services but their expertise will be invaluable in helping you
select the right product.

The six biggest misconceptions about POM insurance
1. Policies taken out in your home country are automatically valid when you are an expat
In fact, the converse is often true and moving country will invalidate a policy in many cases.
Always check all policies if you are relocating and take the necessary steps to ensure that you
remain covered wherever in the world you are.
2. Death in Service cover will be sufficient for your family’s future needs
If your employer offers Death in Service this will help provide for your family but it is unlikely
to meet all their needs and even if they receive payments they are still likely to struggle (it
may not even cover mortgages or outstanding debts).
3. Your home country’s government will look after your family
Wherever you come from, state cover is basic and diminishing as governments are under
severe financial strain. As an expat your access to any help from your home country may be
limited. Even if you are eligible for cover, you will find that it may keep your head above water
but will not afford you a comfortable lifestyle and will not give you the wellbeing you desire
for you and your family.
4. Your country of residence’s government or your company will look after your family
Expats are unlikely to get a great deal of assistance from a foreign country’s government.
The granting of a working visa by a host country normally requires that the employer
will guarantee repatriation. If any assistance is provided it is usually likely to be on a
compassionate basis and for a limited time.
5. You medical insurance is unlimited
All medical insurance comes with a maximum pay out per year and this can vary dramatically
from one policy to the next. Check the policy terms and conditions carefully.
6. You will always be eligible for cover
As you get older, you may find it difficult to get cover and it will be more expensive as you
present a higher risk to the insurer.That is why it is often better to take out peace of mind
insurance at a young age, even if you feel invincible! Most importantly, if you are uninsured
and do contract an illness of disease it may be impossible for you to get any future peace of
mind insurance.
By taking out peace of mind cover
you insure your future insurability.

Seven mistakes to avoid when choosing POM insurance
1. Don’t buy insurance you don’t need
Most insurance will only be necessary while you are still actively employed and/or have dependent
children. Once you retire and your children are financially independent, you are unlikely to continue
to need as much insurance so don’t be persuaded to pay for policies you don’t need. It is however, a
good idea to continue cover for a partner to provide for them if they were to survive you.
2. Don’t sign before checking the small print
You should always make sure that you check over any peace of mind insurance policy with a fine-
tooth comb to ensure that you are clear on what is and isn’t covered. If you have any questions,
ensure that you have satisfactory answers before you sign on the dotted line. If in any doubt about
terms and conditions consult an adviser independent of the insurance provider.
3. Don’t be tempted to lie
You must disclose any and all relevant health information to any potential insurer. Saying you
don’t smoke when you do or failing to mention any existing conditions may mean you pay lower
premiums but you will be paying them for nothing if you come to make a claim and the truth is
revealed. Honesty is definitely the best policy. If you are not sure if something is relevant, mention it
anyway.
4. A life insurance policy doesn’t have to be for life!
Ironic as it sounds, a life insurance policy doesn’t need to last a lifetime. As with all kinds of
insurance, regular reviews and price comparisons are necessary to ensure that you continue to get
value-for-money on your policy. As market conditions change, better deals may be offered. If you do
decide to change policy, make sure the new policy is active before cancelling your old one.
5. Joint life policies could be a false economy
A joint life policy pays out only once, when either yourself or your partner dies.The surviving partner
is then left uninsured. Separate life insurance policies are usually only slightly more expensive but
will pay out upon the death of both partners providing continued cover for the surviving partner
and any dependents.
Separate policies are also a good idea from an inheritance tax point of view, and will make life much
easier if you separate from or divorce your partner.
6. Avoid dedicated mortgage insurance
Banks often try to sell mortgage insurance in tandem with a mortgage offer but this is usually not a
cost effective option because while the value of your mortgage diminishes over time, the insurance
premiums do not. Adding the value of your mortgage to an overall life insurance policy will usually
be a cheaper option.
7. Don’t use a company tied insurance agent
If you use an agent who works exclusively for a particular insurance company you will obviously only
be offered the products sold by that company. An independent broker on the other hand will be able
to shop around and find you the best policy suited to your own specific needs and budget.

Four important questions to consider with employer-based
insurance schemes
Many expats may be tempted to rely entirely on employer-provided peace of mind insurance.
However the following issues should be carefully considered:
1. Is the cover adequate for your needs?
Consider carefully whether the level of cover is sufficient for your needs.The size of company policies
varies enormously and you may find there is a considerable shortfall between what is offered and
your actual requirements.
2.What happens if you leave?
You should ascertain what happens if, for whatever reason, you leave your employment. Normally
the benefit stops as soon as you stop working for the company.This may leave you and your family
vulnerable.You should find out if your company policy is transferable and under what terms and
conditions.
3.What happens if you get sick?
If you have a company medical plan and you get sick you are covered but what happens if your
illness will affect future insurance ? An example would be if you contracted diabetes; if you later
leave your employer would you still have the benefit of full cover?
Is your future insurability at risk?
Relying solely on a company scheme could potentially impact your future insurability.This could
have massive consequences on your future protection needs.You could be left without cover for
pre-existing conditions that have developed during the period you are insured by your employer,
liable for far higher premiums for any kind of future cover or possibly find yourself or other family
members in a position of not being able to obtain cover at all.
If you have any questions about anything contained in this guide or want professional assistance
with any aspect of peace of mind insurance contact enquiries@infinitysolutions.com

1 WHO Agency for Cancer Research
http://www.iarc.fr/en/media-centre/pr/2014/pdfs/pr224_E.pdf
2 Cancer Research UK http://publications.cancerresearchuk.org/downloads/Product/CS_KF_
ALLCANCERS.pdf
3 Scottish Widows Claims history 2013
http://www.covermagazine.co.uk/cover/news/2346233/scottish-widows-pays-90-of-ci-claim
4 UK Office National Statistics
http://www.ons.gov.uk/ons/rel/vsob1/mortality-statistics--deaths-registered-in-england-
and-wales--series-dr-/2012/sty-causes-of-death.html
5 US CDC http://www.cdc.gov/heartdisease/facts.htm
6 US CDC http://www.cdc.gov/stroke/facts.htm
7 UK Stroke Association http://www.cdc.gov/stroke/facts.htm
8 CNBC http://www.cnbc.com/id/100840148
9 Aviva
https://www.aviva.com/data/media-uploads/news/File/RDhub_reports/Family%20
Finances%20Report%20Jan%202013.pdf
Infinity Financial Solutions Ltd is registered in Labuan, Malaysia (company number LL04446)
under the Labuan Companies Act 1990. Infinity’s operations are regulated and supervised by the
Labuan Financial Services Authority (LABUAN FSA) Licence Number BS200548 and are subject to
the legislation of the Labuan Financial Services and Securities Act 2010
Registered Office:
TMF Trust (Labuan) Limited,
Brumby Centre, Lot 42 Jalan Muhibbah,
87000, Labuan F.T. Malaysia
Infinity Financial Solutions Ltd is registered in Hong Kong (company number 1536776) under the
Companies Ordinance (Laws of Hong Kong). Under Hong Kong regulations, a person who acts as
an insurance broker must have authorisation from the Insurance Authority or be a member of a
body of insurance brokers approved by the Insurance Authority.The Hong Kong Confederation of
Insurance Brokers (“HKCIB”) is such a body that has been approved by the Insurance Authority.
Infinity Financial Solutions became a member of the HKCIB effective 21 July 2011, under
membership number #0462, transacting Long Term (including linked long term) Insurance
business.

Email: enquiries@infinitysolutions.com
Visit: infinitysolutions.com
Infinity Financial Solutions Ltd.
S08A0, 8th Floor, South Block,Wisma Selangor
Dredging, 142A Jalan Ampang, 50450, Kuala
Lumpur, Malaysia
T: +60 3 2164 6585, F: +60 3 2164 7081
Infinity Financial Solutions Ltd.
2202 Golden Centre,
188 Des Voeux Road Central,
Sheung Wan, Hong Kong
T +852 8155828, F +852 2815 5829

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