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Baht/$ 33.50/55
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GOLD |
14,450
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NETWorth
ANDREW WOOD
It is becoming more and more common these days for people to reach the age of 100. Although it is not considered as special these days, it is unusual for anyone to attain that status. In practice, actuarial longevity levels are now around 86 years owing to healthier lifestyles, more exercise and advances in medical science and gene therapy.
It still remains the case, though, that many of us will fall foul of natural causes, misadventure, hereditary and other events a good few years before our expected term. Although medical discoveries and treatments continue to advance in leaps and bounds, mortality still takes its toll via major critical illnesses in five major areas: heart disease, stroke, cancer, organ failure, brain- and age-related illnesses such as Parkinson's, dementia or Alzheimer's diseases.
These criteria do of course change periodically to reflect risks assessed by insurers as to their liabilities in changing circumstances and new potential dangers to the indemnity they are insuring. Bird flu and mad cow disease are two notable modern instances of concern, along with resurgent diseases of yesterday, such as multi-antibiotic-resistant strains of TB, and childhood measles.
The hidden issues for everyone relate to indemnity and age-limit exclusions, and the cost of indemnity cover in later years when such protection is most needed, but often less affordable. This tends to be moreso for expats who are more exposed to the risks of tropical and environmental pathogens.
Whether you will retire early or at a mandatory age is to most extents irrelevant. As an expat who has perhaps amassed provisions for a reasonable retirement, you could now be considerably exposed to financial liability in the event of critical illness circumstances striking. If these events occur, how is the family unit financially positioned to cope with such an emergency? Even if indemnified for primary risk events, does your insurance cover make provisions for ongoing rehabilitation, relapses, secondary attacks or related consequences occurring?
Another issue to consider is the indemnity coverage being extended to your spouse or partner as a joint policyholder. Should one of you be more predisposed to such risks, will it impair the other's ability to claim in later years? If you do decide to cover for your partner, it may be prudent and more cost effective overall to initiate single policies covering each of you separately.
Insurance cover should be a priority, not an option: Critical Illness Cover or CIC policies should not be confused with basic health insurance. Also known as medical insurance, this will cover the actual cost of medical expenses incurred in the treatment of sickness and disease when you are sick.
As distinct from this there is cover for additional expenses incurred in coping with these serious diseases. There will be possible loss of earnings and often additional costs of home or other essential care that will not be covered by your medical insurance.
It is more common these days for insurance cover to be rolled into a life assurance policy. Some policies will actually pay a capital sum assured prior to death where a serious disease has been diagnosed and a specific estimated life expectancy has been projected. When that life expectancy is within defined limits then the capital sum will be paid immediately. This will often assist families in dealing with the difficult financial aspects of these trying and stressful times.
Unlike every aspect of in-depth financial, planning protection risk strategies needs to be assessed according to the unique circumstances that best suit each family unit. Arguably, not all disasters are catastrophic, and not all serious diseases are fatal. On the other hand, calamities can turn into disasters very easily. Should you not be suitably insured or be negligently uninsured as so often happens this could be financially disastrous for you. Whether lifestyle events involve hurricanes, accidents, skin cancer or plain misadventure, the difference between surviving financial or medical disasters can simply boil down to the regular premium costs of an insurance policy.
It is also important to assess the actual requirements that suit your individual circumstances. This will likely need to be balanced against your assets. It may well be that your own assets would provide good financial stability in the event of a serious disease or a resulting death. Some expats will often have life insurance to cover the inheritance tax in the event of their demise.
No matter your circumstances, if you feel you need to consider the options available to you and assess the real risks you or your family or dependent s may face you are well advised to consult your professional independent financial adviser as he will be able to help you integrate this into your overall strategy.
Questions to the author can be directed to Barclay Spencer International on 0-2653-1971 or e-mail to info@barclayspencer.com
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