Expat Whole Of Life Insurance Protection Policies
Expat Whole of life insurance protection is designed so the policy pays out a lump sum to your loved ones when you die. Expat Whole of life insurance is designed to last as long as you are alive before paying out on the expatriate life insurance part of the policy. You pay in a premium every month, quarter or year and when you die, the policy pays out a lump sum to your loved ones. That sounds pretty simple enough, and a great benefit to have. Yet only a small minority of people take out whole of life cover because the premiums can be more expensive – the vast majority of expatriates opt for term insurance instead. In some ways it can be said that WOL insurance is similar to universal life insurance. The main difference with universal life policies being people choose to pay the maximum premium possible for the first several years of coverage in order to build a large cash value, then use the cash value to pay premiums later on for the latter part of the whole of life insurance policy.
How do expat life insurance policies work?
The difference between an expat whole-of-life insurance policy and term insurance is that term insurance only runs for a set period before it ceases to pay out. For example this is usually on retirement on your 65th birthday. With term insurance you select how long you want the term of the expatriate insurance policy to last when you get a quote, for example 25 years. If you die in that time it pays a tax-free cash lump sum to your loved ones, but if you live beyond the term, your plan has no cash-in value. As you will see when you compare life-insurance quotes for expats, term insurance is a lot cheaper than whole-of-life cover, which is why so many more people take it out.
Can you use life cover policies to cut your tax bill?
The main reason people still take out whole life cover is to help cut their family’s tax bill, particularly inheritance tax (IHT). When you die, IHT is charged at 40 per cent on all your assets worth more than £325,000. This includes the family home, which means that millions now pay this unpopular tax. If you take out a whole of life policy and write it under trust, your beneficiaries will receive a cash free lump sum without the policy be added to your estate, this way they can use the money paid out to pay the IHT bill as this should get paid out a lot quicker than if it was added to your estate of assets. Tax planning is a complex area, and the rules are changing all the time, so you should consider getting in touch with UK Expat Pension Reviews for specialist advice about putting your life insurance in trust.
What to watch out for when buying a whole of life insurance policy!
Many expatriate life insurers guarantee they won’t increase your premiums and sum insured for the first 5 or 10 years of the policy. At this point, they will review your plan and may hike your life insurance premiums. Make sure you understand how this guarantee works. One of the biggest complaints about whole of life cover is that people don’t know their premiums could be reviewed and their premiums increased every 5 years making the policies vastly more expensive
What affects your life insurance premiums for expats?
How much you pay will also depend on the sum insured, your age, your location as an expatriate, current state of health, and how much you drink or smoke. The higher the risk, the higher the premium. You can take out a plan for one or two people, although it will only pay out once, on the death of the first person. You should always consider taking out waiver of premium with your life insurance policy because this will cover your monthly premiums if you fall ill and can’t make the payments. Some plans can also include sickness or disability benefits. With some expatriate insurance plans, you keep paying in until you die, which can be expensive if you live to 105. But with others, payments stop once you reach a set age, even though cover continues until you die.
Look Here For Details of One Of Out Top Whole Of Life Insurance Policy Providers
Our Whole Of Life plan is as flexible as life itself: one-stop cover that can blend whole of life and term with critical illness, while carrying some valuable and relevant extras too. It’s also a living plan, arranged to take account of changing conditions. So once you are covered you can forget about your personal insurance needs, and concentrate on living.
- Protection for the short and long-term
You can arrange term cover alongside whole of life for a specified period. This way, your clients can have additional cover during the anticipated term of a mortgage or loan, and still have a healthy lump sum for the family on death. And, of course, the combined premium can be significantly cheaper than a traditional whole of life, with premiums paid for life.
- Critical extra benefits, including critical illness cover
With just one premium, your can also benefit from critical illness cover and a host of valuable extra benefits too. This includes cover you will be glad to have in an emergency, but probably wouldn’t arrange separately if you didnt have this arranged with us automatically.
- Vanishing premium term.
As a client will receive your whole of life benefit, without having to pay premiums for the whole of your life. You can choose the premium term, stop paying at your chosen age, and still have a fully funded policy in place – even if you live to 100 (or beyond).
- Automatic benefit indexation
We will set up Whole Of Life plan to offset the effects of future inflation – maintaining real protection levels as you and your family get older.
- Family-friendly flexibility with guaranteed insurability option
If your circumstances change in the future – with a marriage or a new child – we may be able to increase your cover without medical underwriting, with our guaranteed insurability option.
- Second generation family protection included
When your take out adult Whole Of Life plan policies with critical illness cover, we can automatically cover up to three of their children to a maximum of USD 15,000 at no extra cost.
- Credit cards welcome – with no surcharge
People often prefer to pay their premiums by credit card, but understandably don’t want to pay extra credit card fees. With our adult Whole Of Life, that’s no problem – we welcome card payment, and we don’t add a penny in costs.
- Free and simple switching
We don’t charge to change funds, so you can switch between sectors and themes as frequently as you decide. And you won’t pay any initial charges from the fund manager, either. This can even be done
PLANNING WITH OUR WHOLE OF LIFE PLAN
Our Whole Of Life plan aims to provide comprehensive cover and offers a wide range of planning opportunities. Whether you want to give a gift of a life policy to your children, needs life cover for yourself, wants to set up life cover for a key man in your business, or needs something to protect your savings in retirement, Our Whole Of Life plan can be tailored to suit all of these valuable needs.
For international expatriates, there is often little in the way of support from Government in times of a health crisis, and Whole Of Life plan can help clients feel assured that the financial protection they need is available.
- A Whole Of Life plan for Children
Children grow up at such an alarming rate, at times it can be hard to keep up.
Starting a Whole Of Life plan when the child is young could mean a fully funded life insurance policy by the time they are old enough to leave home…
With life and critical illness cover that can be indexed over time, the value of their life benefits can grow just as quickly as they do.
- A Whole Of Life Insurance plan for Singles
Whether you are making those first steps towards starting a family or just looking to buy your first house, life and critical illness cover are crucial to helping them you get started and to stay protected. If you want a large policy, or a small one that grows with their financial needs, they have a partner in us.
With a policy that can be increased (without extra medical testing) if they get married and again if they have kids, LifePlan can adapt and grow over time with them.
- A Whole Of Life Insurance plan for Family
Our client’s financial planning needs change over the course of their lives.
Buying houses, putting children through school, planning for retirement and even paying for weddings all impact a client’s long term financial goals.
There is however, always one constant need. The need for life and critical illness cover.
Having an insurance policy is important to preventing the financial loss that can accompany the unthinkable.
- A Whole Of Life Insurance plan for Business
Protecting your business against ill health of key staff is just as important as protecting it from competitors.
By having in place an insurance policy for any key members of staff, a business can offset any financial losses it might face if they’re unable to work. If a key member of staff is unwell, it can jeopardize relationships and even put profits at risk.
For sole traders, having that protection policy in place can help them cope with the stress and financial loss that would accompany closing their business (even if only temporarily) should they be unable to work.
- A Whole Of Life Insurance plan for Retirement
Pensions take a lifetime to build, and once a person stops working, if anything happens to those savings, it is not easy to replace them.
If a client is unwell and needs to pay for treatment, ongoing care, or any house renovations that might be needed following their diagnosis, they would need to use their pension pot.
The big question is will their savings be able to cope?
Having a protection plan that can replace any of those savings and prevent any financial losses is crucial to long term financial stability.
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