Many contracts to chose from

APRIL designed a range of 9 contracts covering accident or illness for expatriates. These contracts range from a simple, straight forward, international medical cover, to more comprehensive cover including out-patient, dental and optical. They also have contracts working on a monthly revolving basis to cover those on short missions, student exchange programmes or training, and an integrated Mutuelle which work as a  one-stop-center for French who want to remain in the French Social Security System (CFE) – If you are French and want to know more, read this article in french.

Great Medical Cover

Their hospitalisation cover from their Magellan contract is the best Medical Cover I’ve seen. You are covered for 100% of actual costs, up to a maximum amount of healthcare expenses which range from 200,000 to 500,000 Euros – these doubles in the event of accident or critical illness.

I do like the fact that these cover includes pregnancy delivery, even for their most basic plan. Sweet.

Best of all, their prices also are sweet. You would pay from 336 Euro if you are a 21 years old on a 200K cover, up to 2,832 Euros if you are over 70 years old on a 500K cover.  Pretty cheap by international standards.

Cover for life

Many insurer do tell you that they will keep covering you in your old days. But it is very hard to find it in writing. April does write it down. The following lines can be found on page two of most of their contract:

APRIL Mobilité offers lifetime healthcare cover if you take out a policy before age 71. You are then covered for as long as you wish with no increase in premium regardless of the level of your expenses.

I love it. To the point that I am introducing their insurances to all my clients who are in their 50s, advising them to switch to APRIL. To me, this is the perfect option for those who want to retire internationally, with programmes such as the Malaysia My Second Home Program.  An international insurance, replicating the French Social System, with a lifetime cover.

As you can see, I like this insurer very much. The more I work with them, the more I like what I see. If you feel like you’d like to know more, I invite you to visit their website (APRIL Mobilité). Unfortunately it is in French, but they do have most of their brochures and information in English. You can also contact me directly and I’ll be happy to provide them to you.

I’ll wrap this post up with a few figures on APRIL Mobilité and the APRIL Group.

APRIL Mobilité in figures

• More than 35,000 persons are currently covered by APRIL Mobilité
• More than 1,000 companies use their service for their expatriates
• More than 3,000 students covered per year

APRIL Group in figures

• 2.5 Million person insured
• 3,200 employees world-wide
• More than 30 years in business
• ISO 9001 2000 certification awarded in 2002

Stripped down to its core, a life insurance provides your loved ones with cash after your death. This money can help your loved ones meet many important financial needs like your funeral costs, your children’s education, your spouse’s daily expenses and retirement plans, and much more. It gives ensures the people you care about the most will be provided for, even if you’re not there to care for them yourself.

The first question you need to ask yourself is whether you need a life insurance or not. To figure this out, you need to imagine the worst case scenario. What would happen to your loved one financially, were you to die tomorrow?

To help you answer this question, you will find here under a few common scenarios I come across regularly. So whether you’re in your 20s, a bit older, a bachelor, married , have children, or not, you will be able to make up your mind whether you need a life cover or not.

You’re Single
If you are single, you don’t really need a life insurance as no one depends on you financially. I only see three reasons for a single person to get a life insurance: (1) when you support your parents or siblings; (2) when you carry significant debt that you wouldn’t want to pass on to your family; (3) As you can guess, the best time to get insurance is when you don’t need it. And you need it least when you’re young, healthy and have a good family health history. So it can make sense to lock in coverage while you’re young and single, eliminating the risk of your not qualifying later in life because you’re older and not as healthy as you once were.

You’re a Couple
Many start thinking about getting a life cover when they get married. After all, once married you share everything with your spouse, including your finances. Therefore, it makes sense to protect your loved one should something happen to you, whether it is to make sure they can maintain their standard of life, or simply cover your debts (credit card, car loan, or mortgage). It also is a good idea to get a cover for the mother-to-be before she is pregnant as some companies don’t issue a policy to a woman during her pregnancy because of the potential health complications.

You’re a Family (Parents + Kids)
This is a no-brainer. Unless you are very wealthy, or your spouse family is, the only way to ensure your families well being is to get a life cover. And do not under-estimate the importance of getting a cover for your stay-at-home spouse. The replacement value of contributions such as child care, cooking, cleaning and other household activities are often underestimated. Think about your quality of life, or your partner’s, and get a cover for both of you.

You’re a Single Parent
If you don’t have a life cover as a single parents, go get one NOW! Your children’s financial future rest on your shoulder. What does happen if you’re not there anymore?

You’re Retired
Once retired, you don’t really need  a basic life cover *. Nevertheless, a life cover can still help your family as its proceeds are payable immediately, ensuring your beneficiaries can take care of funeral costs, and other debts without having to hastily liquidate your assets.

You’re a Small Business Owner
As a small business owner, you have one more reason to get a life cover. What would happen to your business if something happened to you tomorrow? Or maybe to your partner? Or a key employee? You got life cover options like a buy-sell agreement or a keyman insurance which can provide you with enough security and flexibility to help you get through these tough times.

At the end of the day, Life Insurance is the best way to ensure your loved ones well-being. Knowing when to get one, and why you get it, will help you define and optimize your estate planning. Now, did this post make you think about your current life cover? Do you plan to review it any time soon? If so, do you think I missed something here? Please feel free to react in the comment section here under.

* I am not discussing ILP cover and other schemes shielding your assets from the tax-man. I am focusing on simple, stripped down, life cover.

Michael, from The Global Assurance Blog, makes an interesting point in his A Change of Perception? article. He sees the healthcare systems all over the world as in dire need of an overhaul, gives a few example, and call for actions. Some food for thought.

Another interesting read for those who are looking to invest in these troubled times is How to Use Stock Screens and My Stock Screener Criteria by the Dividend Guy. Screening is one of the first step you should take in your evaluation process. I found this method solid.

Finally, my usual Economist articles. A lament for savers simply is the greatest article I read in a long time. It is music to my ears. I don’t want to summarize it here, so that you follow the link and go read for yourself.

Meanwhile, The new middle classes in emerging markets Special Report provides many nuggets of information as to what to expect from our world in the future. The middle class is on the rise, and its diversity will greatly impact the way our economic, social and political system will evolve. Particularly interesting for marketers and world-curious-citizens.

Can a simple “A” make such a difference? Let’s go back to their definition.

Insurance: an equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium

Assurance: The state of being assured; firm persuasion; full confidence or trust; freedom from doubt; certainty.

I think the difference is notable. Insurance is to get protection for specifics, while assurance is a lot more comprehensive. Medical insurance is typically what one can get in most countries, especially in Asia or America, while healthcare assurance is the preferred system for many European nations. The difference in perception can nurture surprises for European who are not used to be covered for specifics only. They usually expect to get the same level of cover as back home, even when picking the basic insurances.

Let’s review both to get a better grasp of their differences.

Medical Insurance
Typically local and international programmes and providers, who offer covers can be for emergency only or basic. They offer a choice of deductibles, exclusions, options and other customization to meet individual needs and expectations. Cover options can include hospitalisation, inpatient and outpatient costs, doctor and surgical fees, emergency evacuation (home country or nearest suitable hospital), physiotherapy, chemotherapy, radiotherapy, dialysis, local ambulance charges, organ transplants and others (though the list is already pretty good!)

Healthcare Assurance
Only international providers can assure you to such a level. It is much more comprehensive and protects your lifestyle instead of just offering specific insurances. As you can expect, its comprehensiveness means it is more costly. A lot of European forget how much their healthcare system is subsidised through taxes and are shocked to hear the cost of a decent health cover. The explanation is pretty simple. On top of all the medical cover, you get cover for dental, optical, maternity, chiropractors, osteopaths, acupuncturists, rehabilitation & home care and many others. It also is a rule of thumb that such provide offer better service and are more understanding.

If budget were not an issue, we would all chose healthcare assurance, isn’t it? Unfortunately we sometimes have to compromise. But we should do so knowingly. To help you in your research you should target an insurance budget of between 3% to 5% of your income. This should get you a good cover. You can also contact me should you wish to discuss this further!

The country you are living in / or to which you are moving to can have a bearing on your decision. Some countries enjoy better healthcare than others. However, I personally recommend expats do chose international cover over a local plan for the following reasons:

• They are international (Duh!), which means that you will not have to only rely on the medical facilities in the country you are living in. Many prefer to know they can go home, or to an alternative country,  for treatment should they become sick.
• They will follow you wherever you go. This ensures you don’t have any waiting period when moving to another country Icing on the cake, you don’t have to deal with potential pre-existing exlusions once you are insured.
• They gives you more freedom selecting where and by whom treatment shall be carried out. International provider usually enjoy much larger network of participating hospital.
• They usually are renewable for life. Whereas local plans will usualy only be renewable until age 65.
• Your level of coverage is much higher with an international policy, typically over 1 Million USD. You also enjoy fewer exclusions.
• International policy renewal premium are community rated. This means that your premium shall remain manageable even if you were severely ill over the past few years and had to go regularly to the hospital. To compare, local plans usually are based on previous years claim.
• International plan were set in place to replicate the same level of protection European used to enjoy back home. This means that they are not as cheap as local plans, but provide more peace of mind regarding the level of coverage in place.

At the end of the day, the choice is yours. There is no universal truth.