Is My Insurance Valid?
In my previous articles I went over the question of having enough money in retirement.
Today, it’s time to ask yourself a very important question which is important to both you and your family.
Are my life and health insurance policies valid?
Going into 2021, the last thing you want is an expensive medical bill to pay or your family being left with a mountain of bills.
The coronavirus pandemic has many of us thinking about worst case scenarios. It’s only natural that people are considering whether, in the event of their absence, their loved ones would be financially protected. If you’re reading this, you’ve probably given it some thought yourself.
Having the right protection in place is an aspect of financial planning that is often overlooked. While insurance could be more complex and costly when living abroad, it could protect you and your loved ones in the event of the unexpected occurring.
Adequate protection – or insurance cover – can provide peace of mind for you and your family. It means you can safeguard a desired quality of life for your loved ones and help avoid any financial hardship if long-term plans change through becoming unemployed, ill health or loss of life.
There hasn’t been a deal agreed yet that covers financial services, which may affect your insurance.
If you’re no longer resident in the UK or you’re thinking of leaving the UK in the near future, depending on the type of insurance you have and with which company it may no longer be valid once you leave.
You need to contact your insurer as soon as possible to find out if your coverage is still valid and if not what your options are.
The European Insurance and Occupational Pensions Authority (EIOPA) issued a one-page guide targeted for consumers that have a life insurance policy or pension from the United Kingdom (UK) and living in the European Union or considering moving residence from the UK to the EU.
You can find it by following this link – Consumer Guide Brexit
What if I don’t have any insurance cover?
If you are no longer covered by your old policy or you are seeking cover for the first time you need to understand what you need and why.
Types of cover
There are various types of personal protection policies available. In general, it’s always important to ensure the cover you have is adequate for your circumstances and your family members know the details of what you have in place.
The type of protection available includes:
Life insurance – these policies are designed to pay a lump sum if you die. You can choose how much cover you need, how long you want it to last, and change the amount and policy duration at any time, subject to the terms and conditions within it.
If your circumstances change, such as a moving abroad, check that the policy is still valid as many companies will not cover you once you change from your home residence country.
On average 50% of folks living abroad do not have any life cover.
Income protection insurance – this kind of protection can provide an ongoing income if you are no longer able to work. This usually kicks in after a deferred period of time, and your premiums will usually depend on the length of the deferment period.
Private health insurance – depending on your circumstance e.g. your home and host country, you may be eligible to free or subsidised healthcare. The extent of this provision and the quality of local healthcare services are likely to be key factors in deciding whether to have private health cover or not. If healthcare is not state provided or subsidised, the costs of even minor or routine medical treatment can quickly mount up over time.
Critical illness insurance – this will provide cover, within set criteria, in the event of a permanent disability or diagnosis of a specified, serious illness. Depending on the level of cover – which again can be altered if required – this could help to pay living expenses and the costs of moving if illness means you have to retire early.
Equally, if you’re relocating abroad with a company that provides insurance, read the small print carefully to check that cover is adequate and for which eventualities. If not, you may need to supplement it with your own policy.
If you are worried about your insurance coverage during this time or would like more information on possible investment opportunities you can take advantage of my free 60-minute consultation by clicking Contact Me Today for an initial informal chat.
I would be happy to review your current financial plan, offer some tips for creating one or answer any questions you might have pertaining to your investments.
Look out for the next blog article which will go over the next important question you should be asking yourself in 2021.
Until next time happy investing!
About the author
Colin MacGregor is an independent financial advisor working across Europe for Professional Investment Consultants S.A. (Europe) www.pic-europe.com.
He has over 10 years experience in the advisory sector and currently resides in Prague, Czech Republic.