Quick Guide to Life Insurance
in Southeast Asia

You probably insure just about everything else: business, health, home, car or moto, even travel! But so many of us fall short of insuring our most precious resource – our very lives.

Why might I need life insurance?

For most, the answer is generally to protect their family financially in the event of their death. Here are some more specific reasons:

Income replacement: Your income is likely your family’s biggest financial asset. Life insurance can help replace your income if you die, so your loved ones can maintain their standard of living and cover essential expenses like housing, food, and childcare.
Debt payoff: If you have outstanding debts, such as a mortgage, student loans, or credit card debt, life insurance can help pay them off in the event of your death. This can prevent your loved ones from inheriting your financial burdens.
Education expenses: If you have children, you may want to purchase life insurance to ensure they can afford college or other educational expenses even if you’re not there to provide for them.
Final expenses: Funeral costs, medical bills, and other final expenses can add up quickly. Life insurance can help cover these costs and prevent your family from facing financial hardship at a difficult time.
Business continuation: If you own a business, life insurance can help protect your business from financial loss if you die. It can provide funds to keep the business running, pay off debts, or buy out your ownership stake.
Leaving a legacy: Life insurance can be used to leave a financial inheritance to your loved ones, such as your children, grandchildren, or charities you support.
Peace of mind: Knowing that your loved ones will be financially secure in the event of your death can provide you with real peace of mind. This can allow you to focus on living your life to the fullest without worrying about the future.

How much should the benefit be?

The answer will largely depend on the reasons you want life insurance in the first place. At its simplest, if you want to be sure your family can stay in your home, your benefit should cover your mortgage, insurance and other house expenses. The answers get more complicated as you add reasons. Your advisor can walk you through this analysis using an online calculator.

What are the types of life insurance?

In its simplest form, life insurance is a product that pays out a benefit to your beneficiaries if you die. The two major types of life insurance are term and whole life.

Term life insurance provides coverage for a specific period of time, typically 10, 20, or 30 years. If you die during the term, your beneficiaries will receive the death benefit. If you outlive the term, the policy expires and no benefits are paid. Premiums are set at the beginning of the term and do not change.

Whole life insurance provides coverage for your entire lifetime, as long as you keep up with your premium payments. In addition to a death benefit, whole life policies also build cash value over time. You can usually borrow against the cash value or withdraw it tax-free. Premiums are not set and typically increase each year.
There are additional flavors of each of these. For example, decreasing term life provides for premiums that decrease over time to reflect a lowering benefit. And there are many investment and other options under whole life.

What’s different about getting life insurance as an expat?

If you have a life insurance policy from your home country, it’s possible it might not work for you as an expat. Some insurance is rooted in a particular country – if you decide to live in another country, it might not be valid. Most expats find that having a portable life insurance policy that is valid regardless of where they live is the better choice.

In addition to a handful of local insurers in each country, Tenzing works with a range of global providers, so you will have choices outlined on your quotation.

What’s the process for getting life insurance coverage?

Most people consult with an expert to help them with the range of decisions they face: what kind of policy, which provider, the benefit amount, etc. Tenzing works with a handful of quality local and international life insurance providers, so we can offer a range of options in designing a policy that suits your needs and lifestyle.

Find a good advisor

Talk with them

• About your reasons for considering life insurance
• Determine an appropriate amount of cover
• Decide which type of insurance suits your needs
• Decide whether you want an international provider

Receive and review a quotation from your advisor

Decide on a policy

Complete and submit the application form

Visit a doctor or clinic for a free or subsidized checkup

Receive your offer

Accept the offer

Make the payment - Done

The entire process can take as little as a few weeks or as long as a few months, depending on a number of factors, including your motivation.

Most expats decide on a policy with one of the global providers, but for some of the deeply embedded, long-term transplants, a local insurer is the way to go. Either way, we can help make an informed decision.

Ask a question. Get a quote. Talk, chat, email – your choice

Our goal is to provide you with the information you need to make informed decisions. Whether you’re exploring insurance or investments, these articles are designed to help. If you still have questions or are ready to take the next step, our team is here to assist you.

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Quick Guide to Life Insurance
in Southeast Asia

Why might I need life insurance?

How much should the benefit be?

What are the types of life insurance?

What’s different about getting life insurance as an expat?