Find out Now How Serious Illnesses Can Leave expats Financially exposed!

What If You Were Uninsurable?

I’m sure you’ve all thought “Ohh! I need to sort out my life insurance cover” and then something else more important comes along.

Right!

Or it may have been health insurance that you needed to set up… 

Either way the point is something else has taken priority! And you know what… 

If you were to really think about it, whatever it was probably isn’t anywhere near as important as either of those two things. 

Don’t thinks so?

Well by the end of this we’re sure that you’ll have changed your mind!

We all know we need to sort out our insurance. Though it’s a chore, boring and hey, you’ve always got time! 

Right? 

Though in reality the answer to that is who knows…

So, today we're going to take a look at why putting these things off can come back and bight you in the butt...

But before we do that we want to quickly talk about this...

If you have life insurance that you set up back home or in another country. Then there's an 80% chance that your policy isn't going to cover you where you live now.

If you want to know more about this then read "Financial Assumptions Expats Make That Will Cost You Big!

If you want to be sure that your life insurance is going to work when it's needed then we can help.

Here's our "Expat Life Insurance Confirmation Pack".

It's completely FREE and has resources to help you confirm your life cover still works. Plus it gives you a step buy step guide of how to do that and gives you questions that you should be asking.

So CLICK the image below and get your's NOW!

What Get's You Moving?

The amount of times that someone asked us to help them get insurance, after they’ve had some kind of health scare, simply beggars belief. In pretty much every case they started acting after it's too late to do anything about it. 

In the past we've written a post about expats being underinsured. It was prompted by an article we read saying that 60% of people in the UK who should have life insurance, didn’t.

And even after they’d had a trigger event such as the birth of a child or buying a house… 

They still didn’t get any insurance! 

Though these aren’t really the triggers that will make you act. The things that will really get you moving are serious illnesses or a major health scare. These are what shake you up and gives you the kick up the backside that you need. 

Getting Insurance Cover, The Cost Of Delay

You’ve had a health scare and it’s made you realise that you have to sort out that insurance. Finally, you get the ball rolling and start filling out the insurance application forms. 

What you’re going to find out is that the impact of that health scare could be quite shocking when it comes to insurance. There's a strong possibility that you're left financially exposed.  

We say this a lot...

“you don’t buy insurance with your wallet, you buy it with your health” 

Now you’re going to find out how true this is! For some of you at this point what you may come to realise is that actually you’ve left things too late. 

So if you haven’t sorted out your life or health insurance and you keep putting it off we've got something that's going to make you think.

What’s the cost of getting sick? 

What’s the impact on the cost or even your ability to get insurance cover?

Heart Attack

So you’ve heard the saying “about as serious as a heart attack” (sorry we had to). Though in all seriousness if you’ve had one then you’ll know just how vulnerable it makes you feel. If you haven’t then take our word for it or ask anyone who has. A sudden sense of mortality makes you want to act and get things sorted out for our loved ones. 

So, if you apply for insurance after having a heart attack what are you going to find out? 

When it comes to life insurance… 

You’ll find that you’re going to pay a loading of at least 225%. And this is a best case scenario assuming that you’ve had a good recovery and got things under control. 

What does this mean in reality? 

Well, if the normal premium for the cover you want was £100 per month Then your best outcome is to be paying £325 for the same benefit amount and cover period. 

If you haven’t made good progress and there’s some complications Then you’re looking at an even bigger loading or even a decline of cover. If the loading gets over 300% then this will lead to an automatic refusal. 

As for health insurance at the very best… 

You’re looking at a complete exclusion of the cardiovascular system. Though more than likely you’ll be looking at a refusal of cover. 

As an expat then this means you’re funding your healthcare out of your own pocket. Whilst you may have cover from your employer now, change company and you may struggle to get added to the new scheme.

Angioplasty or Stent

If you’ve had a diagnosis of atherosclerosis (hardening or narrowing of the arteries) then you may have undergone angioplasty or had a stent implanted. Again this is often another prompter for you to apply for insurance. 

What’s the impact of waiting until after the event going to be on your application? 

Again assuming that everything has gone without a hitch You’re maintaining a healthy lifestyle and have no ongoing symptoms… 

For life insurance you’re looking at a 200% premium loading. So what would have cost you £100 pre-diagnosis is going to cost £300 now. 

If things aren’t so positive you’re looking at a larger loading or a simple decline. 

As for health insurance.. 

Again at best it will be a complete exclusion of the cardiovascular system. This is an enormous one, making the viability of a policy questionable. 

If there are other complications then your application could be declined.

In the article that we wrote a couple of weeks ago we talked about the potential consequences of relying on your corporate benefits package too heavily. An example we gave was one of our clients who worked for a large international cosmetics company in Singapore.

Here it is one more time:

He wasn’t interested in health insurance because he had his company plan. A very common response with expat employees… 

Given the stature of his employer he assumed the scheme was comprehensive. He thought it would cover any medical situation that he or his family were going to encounter. 

What he didn’t realise was that this plan didn’t cover day patient procedures. When he got the diagnosis of atherosclerosis he was happy to undergo the angioplasty procedure to correct the issue. 

He contacted HR to find out how to arrange it through the company health insurance policy. So, imagine his shock when he found out that this procedure wasn’t covered. 

Why wasn't it covered?

Well, that was because it’s classified as a day patient procedure. As medical care improves more procedures get included as outpatient care. On some policies cataract surgery won’t be covered on an impatient only policy. 

What was the upshot of this for him? 

He had to pay a bill of SGD19,000 and that was over 10 years ago. So imagine how much that would cost you today! 

Though that wasn't the worst thing about all this for him. When he came to us to ask if we could set up a health insurance policy for him. He found out he had an even bigger issue and he’d acted too late. 

We applied for him and he was given an exclusion on the policy. He’d pay the same premium as anyone else of his age and yet the policy wouldn’t cover any condition connected with the cardiovascular system. 

This made the policy unviable and meant that he’d be paying for his own healthcare in future

Cancer

This one is a bit more tricky when it comes to giving any clear definitions on the impact it’s going to have getting life insurance… 

The types and degrees of severity are much broader than the conditions we’ve looked at so far. One thing that’s different is how long ago did you have it. The longer you’ve been healthy the better and your chances of getting accepted increase. 

Though for certain it’s still going to effect your ability to get life insurance and if you can then it’s definitely going to be more expensive. What we can tell you is this… 

Whenever we’ve submitted an application for a cancer survivor The applications always gotten declined! We talked to numerous international insurers whilst researching this article. And at the time of writing not one had a client on risk who had a history with cancer. Each one said they’d assess every case on an individual basis. 

Though the experiences that we’ve had when applying on behalf of clients who've suffered from cancer has a common theme. If you’ve suffered from it and got through it getting life insurance is going to be a challenge. 

As for health insurance it’s a pretty similar story. 

Whatever you’ve had in the past will result in an exclusion. Irrespective of how long ago that was, they won’t cover you for it.

 Though the likelihood is they’re not going to accept your application.

A Stitch In Time...

A guy came to us wanting advice on setting up health insurance for when he retired. He’d been an expat for the past 25 years. He was still working and expected to continue for the next 3 years or so. This meant that he was still covered under his company scheme. 

When he retired he wanted to spend 3-4 months back in his home country and the rest of the time somewhere in Asia. This meant that he wouldn’t have access to a state health care system for 8 months of the year. The visa that he was going to get required him to make a provision for his own healthcare… 

So, he would need to have some health insurance to get his visa approved. 

He’d been very healthy and didn’t have any significant health issues for his age. A big thumbs up in his favour! 

Our initial advice was to point him in the direction of his current company scheme. We suggest that he ask his employer if it was possible for him to remain on that scheme after he retired. He could take over the responsibility for paying the premiums.This may sound crazy, though some insurers provide employers with this option for their employees.

The benefit for you as an employee is you’re not going to have to deal with pre-existing conditions. Plus you get the discounts that come with a group scheme, WINNER! 

Unfortunately this wasn’t an option on his company scheme. So, when he left the company his cover was going to end 

Our second suggestion was to set up a personal policy now. He could do it with a higher excess to reduce the premium he’d pay. Then later on he could reduce the excess (as long as he remained healthy) and pay a higher premium as and when he became fully dependent on the policy.

The reason for doing this now… 

He was healthy so he’d get full coverage and If he did get ill he’d still be covered on the policy though claims would be at the higher excess level. Not ideal, yet better than an exclusion or cover being declined. 

We gave him several options, basic emergency health insurance to more comprehensive policies In the end he said that he’d rather wait… 

He didn’t want to be paying for something that he didn’t need, after all he’d got the company insurance Instead he’d get a policy nearer the time. Unfortunately a year before he was due to retire he was diagnosed with cancer. 

It was treatable! He had surgery and a course of radiation therapy. They’d caught it in time, the treatment was successful GOOD NEWS!!! Unfortunately, it had a massive impact on his retirement plans. 

He could no longer get health insurance. He tried and there wasn’t a company that would accept him The visa that he needed required him to have health cover so, this was no longer an option. 

After he left his company his cover would end.

Multiple Sclerosis (MS)

We’ve had several clients who have had an MS diagnosis over the years One in particular springs to mind because they took critical illness cover out on their policy. At a very difficult time this was a shining light that helped them come to terms with the changes their family faced. It took away the financial worries and allowed them to focus on what they needed to do to fight it. 

What if you don’t have cover? 

Again we went straight to the source and asked the insurance companies. If someone has MS what were their chances of getting life insurance and at what cost? 

What we got back was that having MS didn’t automatically mean they’d get declined. Once again it depended on severity and type. They went on to say that if the application was accepted then there's going to be a loading of at least 200%. 

In all likelihood it’s safe to assume that there are more applications that don’t get accepted than do. 

As for health insurance things are pretty clear! You’re NOT going to get accepted for cover. Type and severity don’t matter in this instance it’s going to be a straight up decline. Insurers say that there are just too many associated complications for a policy to be viable.

Crohn's Disease

Crohn’s disease is something that has become more and more common over the past 20 -30 years. It can develop at any age, though it most commonly occurs before 30. There's no cure, though management of the condition through medication is possible. There are also fatalities from Crohn’s disease though they're not common. 

Due to the fatalities life insurers insist applicants with Crohn’s are medically assessed. If acceptable then there is likely to be a loading though this will depend on each individual case. It’s also reasonable to assume that your premium will double. If it is severe enough then the insurer will decline cover. 

As for health insurance then Crohn’s won’t lead to an exclusion only a decline.  The issue is that symptoms can be quite wide ranging.

Asthma

Living overseas as an expat can mean you get exposure to some serious air pollution. Prolonged exposure can lead to people developing asthma. So if you’ve developed asthma and you need to apply for life insurance what can you expect? 

Once again this will depend on each individual case… 

Factors that are considered would be history of attacks, response to treatment. Other considerations would also be environmental conditions. Where you live will make a difference. If you’re living somewhere with heavy pollution then this is only going to aggravate your situation. 

It also varies greatly from one insurance company to another. We’ve had applicants who’ve received a loading with one company and then been offered standard terms with another. If you’re getting a loading then it would usually start at around 100%. In very rare situations then there could be a decline for life insurance 

If you’re applying for health insurance… 

Then you'll get an exclusion applied to the policy You’ll pay the same premium as everyone else though any condition of the respiratory system won’t be covered. Lets be frank that’s a pretty big one!

Other Influencers On Insurance For Expats

There are other illnesses and conditions that’ll impact your life insurance application. There's even more that will effect an application for health insurance. We’re not going to go into them all. 

Though what you can safely expect is this… 

It’s almost certain that you’re going to pay more for your life insurance There’s a good possibility that you won’t be able to get any at all… 

That’s you “Uninsurable” 

As for health insurance you’re definitely looking at an exclusion. They really don’t like pre-existing conditions, most likely you can expect to have cover declined. Though this can depend on how you apply for your cover

A False Sense Of Security For Expats

Life insurance is generally medically underwritten, so you know exactly where you stand. You’re either accepted on standard terms, receiving a loading or getting declined. 

This isn’t always the case when it comes to health insurance… 

Many insurers will provide cover on a moratorium basis or fully underwritten. 

With moratorium underwriting all pre-existing conditions from the past five years get excluded. If there’s no recurrence of symptoms then the insurer could extend cover. 

You won’t know if you have cover for something until you make a claim. At that point they’ll either honour the claim or refuse to pay. Unfortunately, this can mean that claims are slow because they have to review its merits. When you’re facing an emergency this isn’t what you want. If you do experience symptoms in that probation period then you start over again So, the likelihood of you having a chronic condition covered is pretty much zero. 

With a fully underwritten policy there’s a full assessment of your medical history. Any serious pre-existing condition is likely to get an exclusion. Though this isn’t always certain and a condition could receive cover straight away. The good thing is you’ve got complete transparency you know what you can claim for before you pay the first premium. 

As a result claims get approved far quicker. More and more companies seem to go for the moratorium application basis as standard. 

We would always recommend that your application is fully underwritten. You’ll know exactly where you stand If you have suffered from something in the past and have no recurrence. Then you can always make a case for cover. If you do want your policy to be underwritten then make sure you request this before you apply because the application forms will be different. 

In our experience a policy written on a moratorium basis often disappoint. That's because there’s an expectation that you’re covered and then it turns out that you’re not… 

Though there may be some circumstances where it would work better for your personal situation.

Caveat Emptor

Not all insurers are equal! 

Quite often as an expat it can be tempting to look towards the local insurance market as a solution. Even more so if your partner is local. These policies can appear to be cheap and hassle free to set up. 

Though what are you getting? 

You're getting a policy that isn't designed for your expat life. As a consequence you could leave your family financially exposed. There's a really big chance that you've got something that isn't going to pay under certain circumstance. Or might a policy that could end up paying way less than your family needs.

If you’re paying for something and not getting anything in return then what’s the point… 

Right? 

If your insurer hasn’t mentioned exclusions it doesn’t mean they’re not there.

Getting Let Down

We knew someone who took out a policy with Malaysia’s oldest insurance company. They completed the medical questionnaire in detail and with complete honesty. He stated that his wife had had some benign fatty cysts removed from her breasts several years before. 

It wasn’t anything uncommon and there had been no further treatment required. The policy had been running for about five years, premiums were never missed. 

Now, they’d received some devastating news, his wife had breast cancer. So, they submitted a claim on the policy to pay for her treatment. 

The insurance company DECLINED!!! 

Their reason was that this was a pre-existing condition. There'd been no mention of exclusions when the policy was set up. They went to their physician who provided clear evidence that the two were unrelated 

The insurance company still refused 

The only option legal action

Happy Wondering

It really isn’t unusual for an expat to move from one country to another every 3-5 years. If you don’t have insurance that moves with you… 

Then you’re going to have to set up new policies. And the thing is there's a very good chance that a domestic policy isn’t going to do this for you. Whether it’s one from back home or the country where you currently live. 

When you move cover is going to end It’s that simple!

 As we’ve seen above, a change in your health can have a significant impact on your ability to get insurance. 

Don’t think that you have a choice in this either. If you have a domestic policy and keep paying premiums… 

The insurance company will keep taking them. They just won’t honour any claims when you or your family make them. 

If you want to be sure that your life insurance is going to work when it's needed then we can help.

Here's our "Expat Life Insurance Confirmation Pack".

It's completely FREE and has resources to help you confirm your life cover still works. Plus it gives you a step buy step guide of how to do that and gives you questions that you should be asking.

So CLICK the image below and get your's NOW!

Summary

So if you haven’t update your insurance since you became an expat it's time to stop putting it off. A local policy isn’t going to cut the mustard either! 

Think that you’re never moving to another country… 

Think again shit happens, circumstances change people move on! 

Being healthy makes getting insurance much easier and cheaper. None of us know what’s around the corner and it doesn’t matter how fit we appear to be. People still get sick! 

If you’re living overseas then international insurance is your best option. In fact it’s your ONLY viable option. Why? Well because it guarantees that you’ve got continuous cover. 

Get sick… 

Doesn’t matter, you’re already covered, your premiums don’t go up and claims will get paid! 

You won’t get left high and dry when it comes to health insurance then this is even more important! 

You may need to get treatment in another country. A local policy won’t let you do that an international one will 

You get it, Right?

So, here's one more chance...

To get our "Expat Life Insurance Confirmation Pack".

It's completely FREE and has resources to help you confirm your life cover still works. Plus it gives you a step buy step guide of how to do that and gives you questions that you should be asking.

So CLICK the image below and get your's NOW!