Its interesting how many people ask us "I am heading overseas to work, what do i do with my existing Income Protection, Life, or TPD insurances". We also get people who have left Australia to work overseas and want to take up personal insurance".
Now we are not licenced to provide advice around personal insurance, also known as risk insurance. So anything discussed in this article is general in nature and should not be taken to replace licenced advice. If you need a personal assessment we have advisers we work with who can provide these services for you. So let us know if interested.
So if your overseas working for a short term, what are some of the considerations that you need to consider. ?
The financial services regulations around the offering of financial products may not allow for foreign issuers to sell their products in that country. In addition, licensing restrictions of an insurance may limit its ability to sell its products to residents outside of Australia.
How long the applicant has been and how long they will remain, outside of Australia will effect an ability to be insured. This along with the applicants occupation will effect an ability to being insured. For these reasons getting insured early on would certainly make the process easier.
The relevant country category from the Department of Foreign Affairs (DFAT) is also important. Most Australian insurers will not offer any cover to those applicants residing in a DFAT 4 (high-risk country).
Local Australian legislation pre hibits insurers advertising products over seas. As such you will not come across advertising promoting services. You will need to contact an appropriately licenced Australian based financial adviser to assess your situation.
Typical Terms and conditions of Life Cover, Total and Permanent Disablement (TPD), and Crisis Recovery:
Generally the applicant must be an Australian citizen or a permanent resident of Australia.
Generally the applicant must intend to return to and reside in Australia within 5 years of taking the policy.
We see cover being capped to $5 million for Life Cover, $3 million for TPD (subject to age and occupation) and $2 million for Crisis Recovery (subject to age and occupation) from all sources.
Medicals and blood tests can be performed in Australia or overseas. This depends on the insurer but If performed overseas they must be completed in English using the insurers Australian standard forms.
All premiums and claims proceeds are generally made in Australian dollars.
Apply for Income Protection and Business Expenses:
General terms might include:
The applicant must be an Australian citizen or a permanent resident of Australia.
The applicant must intend to return to and reside in Australia within 3 years of taking the policy.
Minimum 30-day waiting period.
Indemnity cover only whilst working overseas.
Copy of contract outlining length/term of the contract if available.
Open ended contracts will be declined until the insured returns to Australia.
Special terms apply in the event of a claim overseas, whereby the insured must return to Australia within six months from the commencement of the disablement.
As you can see its not entirely straight forward. Contact us today to seek a review by a financial advisor for a free assessment.