What is expat income protection insurance?

International income protection insurance is designed to support you if an illness or injury prevents you from working while you’re living overseas.

Expat income protection insurance helps expats maintain financial stability by replacing a portion of their income through regular payments during periods of illness or injury.

This coverage can assist with essential expenses such as rent, mortgage payments, and daily living costs, allowing you to focus on your recovery with peace of mind, knowing that your finances are taken care of.

For expats, international income protection offers reliable financial support, wherever life takes you.

Why do expats need expat income protection insurance?

Anything could happen while you are living abroad, whether an accident at work or while on the road, a sudden illness, or the onset of a new disability.

In these events, you may find yourself unable to work and – depending on the social security system in your new country and your contractual rights to sick pay – you may find yourself without a sustainable level of income.

Expat income protection is the best way to safeguard yourself and your family while living overseas, especially if:

• You live in a country that does not offer universal welfare payments for expatriates who are unable to work
• You are the main breadwinner for your family, or the loss of your income could seriously disrupt your family’s quality of life
• You are worried about the impact of, for instance, a motor vehicle accident, trip or fall, or serious illness impacting your ability to work
• Or if, for any other reason, you become ill or injured and suffer a loss of income

It’s especially important for expats, as you are likely to have monthly costs that you will need to meet, such as:

• Rent
• Utilities
• Car hire/leasing fees
• School fees

What to consider before buying expat income protection insurance

When selecting income protection insurance as an expat, it’s crucial to think about your unique situation abroad. Factors such as the cost of living in your new country, your family’s financial needs, and your job stability can influence the type of coverage you need.

Determining the right coverage amount for your income protection policy is essential. How much money would you need to support yourself and your family if you were no longer able to work? Consider your monthly expenses, including rent, utilities, schooling, and healthcare, as well as your savings. A good rule of thumb is to cover at least 60-80% of your current salary to ensure financial stability while recovering.

Make sure your policy aligns with your personal and professional circumstances to ensure peace of mind during unexpected challenges, allowing you to fully focus on your recovery should the worst happen.

In which countries is expat income protection insurance a requirement?

Most countries do not mandate income protection insurance for expats. However, you should be aware of the local laws in your new country and how they affect you—especially those related to welfare/social security, sick pay and disability pay. This is because:

• There may be a maximum number of days per year you are entitled to sick pay by law (e.g. 90 days per year in Dubai)
• You may not be able to access state welfare, disability pay or sick pay as an expat
• Your sick pay, disability pay, or welfare/social security payments may not be as much as your salary, which could affect your ability to meet certain payments such as rent and school fees

What makes a good expat income protection policy?

When shopping around for an expat income protection policy, you should look for factors such as these:

• Maximum salary value – at William Russell, our international income protection benefit payments cover individuals for up to 80% of their full salaries, up to a maximum value of US$144,000. Our benefit payments are also inflation-locked, meaning they will always increase at a compound rate of 2% year-on-year.
• Monthly premiums – your repayments are likely to be affected by your age, the amount of cover you need and, in some cases, your health.
• Eligibility requirements – many providers stipulate a maximum age, a minimum level of health and will pay attention to the type of labour a worker fulfils. At William Russell, you are eligible so long as you are over 18 and under 60 in good health and work a non-hazardous occupation, usually an office-based job, and not living in one of our excluded countries.
• Length of term – if you choose international short term disability insurance, this typically pays out for a period of up to two years. Our payment of benefit can continue until you return to work, die or reach the age of 65.
• Worldwide cover – if you’re living and working abroad, you’ll need a policy that covers you no matter where you are in the world—including when you’re travelling and making trips home.
• Excellent customer service – if you’re suffering from an illness, accident or injury that is preventing you from working, you want to be sure that dealing with an insurance company doesn’t add to your stresses. At William Russell, we pride ourselves on offering excellent customer service. You’ll never be put through to a call centre—you’ll have a dedicated policy manager to deal with your claim and you can expect friendly, personal and empathetic service every time you need to speak to us.

What affects the cost of expat income protection insurance?

The costs of taking out expat income protection insurance are affected by:

• Your health – if you’re in good health, you will pay less to insure yourself.
• Your age – the older you are when you take out the policy, the more you are likely to pay, as your risk of getting ill increases.
• Your job – if you do a risky job, you will pay more for cover.
• Hobbies and lifestyle – if you take part in dangerous hobbies or you smoke or drink heavily, you will pay more for cover.
• The deferment period – the longer you can wait before you make a claim, the cheaper your premiums will be.
• Whether you might be prepared to do other kinds of work than your own if you get ill – it usually costs less to take out income protection insurance if you say you will only make a claim if you are unable to do any work at all, rather than just your own job.

Can I get expat income protection insurance if I am self-employed?

Absolutely! For self-employed expats, losing an income can be particularly challenging. Unlike salaried employees, you may not have access to employer-provided sick pay or benefits.

You can apply for expat income protection insurance through the same process as an employed person. If you are self-employed and your earnings fluctuate, we will use your average earnings over the three-year period before your last day at work as the basis of your usual income. You can then apply for expat income protection insurance as normal.

Expat income protection insurance for groups of employees

Who can I trust to provide expat income protection insurance for me or my company?

When looking for an insurer to provide expat income protection for yourself and your employees, you’ll want someone who:

• Offers protection of up to 80% of a person’s salary, mitigating some of the impact of sick pay while allowing a person to focus fully on their recovery
• Will offer to reimburse the cost of the medical examinations as part of your plan, so you’re not left out of pocket

What do I need to do to make sure my employees and I are covered?

Applying for expat income protection insurance, whether for yourself or on behalf of your global workforce, is easy. Simply enter your or your company’s details here to get a quote. See our Feefo reviews.

You’ll know if you and your employees are eligible for a group policy if:

• You and your employees are aged 64 years or younger
• You and your employees are in good health i.e. do not have any terminal or degenerative diseases you know about
• You and your employees work in a 100% office-based role, or a similar role that is not considered high-risk

You and your employees are even unlikely to need a medical examination to apply for cover, so long as you and your employees are under 50 years old, fit and healthy, and applying for cover of less than US$75,000.

Groups can have cover up to US$200,000 if their salary allows.

Notes on our income protection plans

We show the benefits on this webpage in US dollars, but we can also denominate your policy in pounds sterling or Euros. You won’t find complete information for our plans on this webpage, nor the full T&Cs, limitations, and exclusions that would apply if you purchase an income protection insurance policy. You can find complete information in the plan agreement, which we suggest you read together with this webpage. We work hard to ensure the information we provide on this webpage is accurate and up-to-date, but inaccuracies are possible. We rectify errors as soon as we become aware of them. The T&Cs that apply to your policy are those found in your plan agreement.