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What is International Group Life Insurance?
International Group Life Insurance is designed to protect staff located in different parts of the world. If any employee covered under the policy was to die, a lump-sum payment is given to those employee’s “selected beneficiaries”.
These beneficiaries are typically family members, partners, or dependents. So, if the worst was to happen, the employee knows that their loved ones will have financial support.
The amount paid out will be down to you, the employer. The more you want to the insurance to pay out, the higher the cost of setting up the insurance policy (AKA the premium).
This policy is also known as International Business Life Insurance, or International Company Life Insurance, among other variations.
Our team specialises in providing small to medium-sized companies with the best employee life insurance, so contact us today to get a quote tailored to your business. Our advice and guidance is completely FREE!
How does International Group Life Insurance work?
As outlined above, International Group Life Insurance pays out a lump sum to selected beneficiaries if the worst happens. The business will pay out regular premiums to the insurer in exchange for cover. International Group Life can cover a larger pool of employees spread across different countries.
The best part of this? International Group Life allows you to put in place one centrally managed plan. This makes it so much easier than setting up separate policies for each country, with different insurers to manage and different contracts to oversee. With an international plan, you’ll have one single contract and one point of contact for all your queries.
International Life Insurance is also great for globe-trotting employees as they can stay on the same plan even if they move from one country to another.
Employers select how much coverage to offer at the start of the policy. This can either be a specific fixed amount or based on a percentage of an employee’s salary. Most commonly used is 2x and 4x an employee’s salary, but some insurers will allow up to 15x salary cover.
For example, if an employee earns £40,000 a year, and is provided with life cover of 2x their salary, then £80,000 will be paid out by the insurer in the sad event of their death.
What are the benefits of international group life policy?
Financial value and low-cost premiums!
The more staff included, the lower the premium per person. Life insurance is also one of the lowest cost forms of cover a company can provide to its employees.
Simplified process
No matter where your staff are across the world, they can all be included and protected under one central plan!
Global umbrella of cover
Having global cover reduces both cost and complexity of setting up separate schemes in different countries. Setting up one all-encompassing scheme works out far simpler than managing several domestic plans.
Flexible arrangements
The amount paid out under the policy can either be a set figure or based on a percentage of the employee’s salary. The more generous you are, the higher the premium will be. This is completely down to the employer, so it’s a case of working out what’s affordable and what employee expectations are likely to be.
Limited medical checks needed
In most cases an employee’s medical history doesn’t need to be disclosed to work out the premiums. However, an insurer will usually set a “free cover limit” and any coverage above this figure will require underwriting: i.e. a medical background check. The free cover limit is usually pretty generous, however.
Boosting recruitment and retention!
A life insurance scheme with such wide cover will be an attractive idea to jet-setting employees. It also highlights you care about your employees wherever they may be in the world.
Any common exclusions to look out for?
Some of the key exceptions to keep an eye out for include:
“Red listed” countries
A number of insurers do restrict and exclude cover for countries which
are listed by the UK Foreign & Commonwealth Office as ‘advised against all travel’.
“Actively at war”
An employee ‘actively at war’ will not be covered by the policy.
No individuals or two-person teams
The policy will need to cover at least three employers, so it’s not suitable for individual’s and two-person teams.
Catastrophic events
All International Group Life Insurance policies will include an upper cap should numerous employees all die in one event, known as a ‘catastrophic event limit’ or ‘single event limit’.
Locally contracted employees
Some insurers will only offer cover to centrally contracted staff, but it is possible to set up International Group Life schemes to cover locally contracted employees too. It all depends on the regulations and stipulations of that country.
Age limits
International Group Life providers offer cover for employees up to the age of between 65 and 75. Only in exceptional circumstances will an insurance provider consider offering cover for older staff.
How much is your policy going to cost?
The cost of International Group Life Insurance is low when compared to many other international employee benefits. But, as always in the world of insurance, costs vary depending on a range of factors. In this case:
- Age of employees
- Number of employees included
- Employees’ country of residency
- Agreed financial pay out amount
- Whether it’s a compulsory or voluntary scheme*
- Whether it includes cover for dependants
* A voluntary scheme requires you to inform the insurer to add someone to the scheme, while the compulsory option makes it automatic.
The only way to get an accurate price is to give one of our advisors a call. All we’ll need is some basic information about your business, and the people you want to cover, and we can deliver a range of quotes. We won’t charge you for our service or tie you into any contract.
Nonetheless, here a few examples to give you an idea of the sort of how much a premium could cost:
Example 1: 15 employees covered, voluntary scheme, no dependants, 3x salary, total sum assured £3,423,178
Price range: £7,847 – £10,602
Example 2: 13 employees covered, compulsory scheme, no dependants, 4x salary, total sum assured £2,546,915
Price range: £4,037 – £5,226
Example 3: 35 employees covered, voluntary scheme, no dependants, 4x salary, total sum assured £6,857,079
Price range: £10,325 – £13,367
How Hooray Health & Protection can help?
You’ll find hundreds of global life insurance providers all offering different terms, price points and products. As an impartial broker, Hooray are always happy to answer your questions and provide advice which is in your best interests. We do not have ‘preferred’ insurance partners; we will always work across the market to bring the best policies to you.
Contact our friendly and award-winning advisors on 01273 222805 or the booking function below for a free review of a new or current policy.
Frequently Asked Questions about Life Insurance
Is a single international plan better than separate country-specific policies?
Usually, yes. But if you’re only covering two countries, then there may be cases where separate policies work out cheaper. We’ll always advise on the best set-up appropriate to your business.
How does International Group Life Insurance work across different currencies?
When setting up your policy, you can select a currency between US Dollars, British Pounds, or Euros. If your staff’s salary is different than your policy currency, the insurance payment to that employee will be worked out from an exchange rate set at the policy start date.
Is there any general employee criteria for an International Company Life Insurance plan?
There are quite a few criteria to meet! But let’s stick with two for now to give you an idea:
1. All members must be actively at work and are not going to be absent from work due to illness or accident for two months or more.
2. You must keep your provider up to date to ensure your cover is still appropriate e.g., if you have added new members or expanded into new territories.
When implementing the International Group Life Insurance, are there any jobs that aren’t included in the policy?
Pretty much every job can be included in your scheme – the only exception is a job where staff are ‘actively at war.’
What are Expression of Wish forms?
‘Expression of Wish’ forms outline who your staff want their beneficiaries to be in the sad event of their death. Although not technically a legally binding document, it is strongly considered by executors of the will.
Can International Group Life Insurance plans be put into a trust arrangement?
International Group Life Insurance can’t be managed in a trust structure! This is down to the multiple countries that will be covered, which all have different legal and tax requirements.
If we implement an International Group Life Insurance scheme does every employee have to be included?
Most Group Life providers will give you the choice whether to make your scheme compulsory or a voluntary benefit for your staff. Whichever you decide, they will be a factor in your final quote!
Can employees in any country be covered on an International Group Life Insurance scheme?
Although some insurers exclude certain countries, we can usually find a policy for staff based just about anywhere in the world. But, there are a couple of important exceptions. Firstly, their job cannot involve being actively at war. Secondly, if the UK Foreign & Commonwealth Office advises against ‘all travel’, in a certain country, then life coverage may not apply.
Does International Group Life Insurance cover employees while travelling and on holiday?
Yes – this cover is 24 hours-a-day, 365 days-a-year whether your staff are at home, working, travelling, or taking a holiday.
Help & Support
If you have any questions, please call us on 01273 222805 or email [email protected]