Death Benefit

A death benefit is one of the most important features to understand when evaluating insurance policies. While health insurance primarily covers medical costs, some international plans and add-on options also provide a financial payout to your beneficiaries if you pass away. For expats living abroad, this benefit can provide critical peace of mind for loved ones who may face significant financial obligations.

What Is a Death Benefit?

The death benefit is a lump-sum payment made by the insurer to your nominated beneficiaries in the event of your death. This amount is usually specified in the policy and is separate from any medical coverage.

Why It Matters for Expats

• Family Protection: Living overseas often means      families are separated from their traditional support networks. A death      benefit helps cover living costs, education, or repatriation expenses.

• Financial Security: It ensures dependents are not      left with sudden financial burdens, especially in high-cost locations like      Singapore.

• Repatriation Costs: Many international health      insurance policies include or can be bundled with benefits that cover the      cost of transporting remains to the home country—a major concern for expat      families.

How It Works

• Coverage Type: The death benefit may come as      part of a life insurance rider attached to a health plan, or through a      standalone international life insurance policy.

• Payment: Beneficiaries receive the full      benefit tax-free in most jurisdictions.

• Premiums: Adding death benefit coverage      increases premiums, but provides essential financial security.

• Exclusions: Insurers may exclude certain      causes of death (e.g., suicide within the first policy year, war, or      high-risk activities).

Key Considerations Before Choosing

1. Amount of Coverage Needed: Consider your family’s ongoing      expenses, debts, and children’s education.

2. Policy Type: Decide if you prefer standalone      life insurance or a health plan with an optional death benefit rider.

3. Global Portability: Ensure the policy pays out      regardless of where death occurs—crucial for mobile expats.

4. Beneficiary Nomination: Always keep beneficiary details      updated, especially after major life events like marriage or children.

A death benefit is more than just an add-on—it’s financial protection for your loved ones in case the unexpected happens. For expats, it provides reassurance that your family will be supported, no matter where life takes you.