We often meet Expats with families who would prefer to have additional life insurance coverage besides the already existing standard corporate pension plan’s next of kin coverage.
This is especially the case for younger Expats who are still building their personal capital and who would be greatly serviced with an additional coverage for a 5-10 year period.
The benefits of a collective corporate coverage:
- Lower costs as there is just one contract;
- Possibly less or no medical intake questions/tests;
- Thus also making coverage more affordable for older employees;
- If it is insurance and not pension based, there might be less compliance demands.
The benefit of getting the corporate coverage right now is that due to the extremely low interest rate and more than expected increased longevity, the costs for such a coverage are half of what they used to be.
B) Type Of Coverage
We can distinguish two basic type of coverages:
- Annuity based : Providing an annual pay-out for a number of years.
- Capital based : Providing a one-time capital when passing away.
It has been our experience that if the event occurs, families prefer to receive a one-time substantial capital. Often between € 500.000,- to € 750.000,-.
C) Quotes And Coverage Selection
We can assist your company selecting the best quotes and coverage during which process we will pay attention to the following aspects:
- Type of coverage: Annuity/Capital based;
- Amount of coverage and if indexation is included as of annuity pay-out;
- The insured period;
- Type of premium: Constant or variable;
- Tax situation for Company and Expats regarding premium and pay-out;
- If the coverage remains intact after international relocation by the Expat;
- If there is a claim to early pay-out in case of severe illness;
- The quality level of the General Conditions of the coverage;
- The reputation of the provider.