(This article was last updated on August 17 2023)
Many expats live in parts of the world which don’t have developed social security systems in place.
So unlike back at home, they often can’t get their income protected, if they get sick.
Others simply want more life insurance, so turn to firms such as Atlas Life and others.
Atlas Life is a life insurance company, which is sold in the expat market, around the world.
This article will review the solution and answer some frequently asked questions (FAQs).
If you want to invest or get insured as an expat or high-net-worth individual, you can email me (advice@adamfayed.com) or use these contact options.
We can offer discounts on Atlas compared to the stated online price, which could save you hundreds or even thousands of dollars.
Who are Atlas Life?
Atlas Life is based in the Seychelles and cover expats in more than 130 countries globally.
They work with two of the largest reinsurers in the world – Swiss Re and Reinsurance Group of America.
What are their various solutions?
Their main solution is term insurance. On top of the term insurance, there are various sub-options, including:
- Critical illness – a lump sum will be paid if you are diagnosed with one of the illnesses covered in the plan.
- Disability – pays a lump sum if you become disabled as a result of an accident or incident.
- Terminal illness – If you are diagnosed with a condition, where you will die within 12 months, Atlas Life pays the life coverage upfront.
- Index option – you can increase your coverage by 5% a year, to cover inflation.
- Medical second opinions – this is a free benefit that Atlas Life offers.. You can get a second opinion by a panel, if you have been diagnosed with a serious illness.
- Estate planning – Atlas Life help with setting up life insurance policies which can pay for estate duties, settle mortgages and so on.
How about business coverage?
Atlas Life also offer benefits in areas such as:
Keyman insurance – This type of insurance helps protect against a director or key person dying or becoming ill. Often times, a company will have a key salesperson or technically-minded individual, and the whole organization could collapse if that person dies or becomes disabled, or at least be affected greatly. This is where most of the demand for keyman insurance comes in – when a firm is “top-heavy” in terms of dependence on 1-2 individuals.
Loan Protection – If your business relies on a loan or start-up funding, loan protection coverage will offer a guarantee to the lender. This is similar to when life insurance is demanded in return for a mortgage or child maintenance.
Partnership protection – this type of insurance protects against the sudden death of a partner in a business. Especially in situations where the last remaining partner face claims, partnership protection insurance pays out a lump sum in the event of the sudden death of a partner.
Shareholder protection – Usually, if a shareholder dies, the shares will be passed on to the immediate family. With shareholder protection insurance, if done in tandem with a legal agreement, provides the surviving shareholders with the capital required to buy the shares from the estate of the deceased person.
What are the positives and negatives of Atlas Life?
The plans have many positives including:
- Speed. Easy to set up and administer.
- Good record of paying out claims.
- Offered in numerous locations and not just 1-2 places.
- They focus beyond merely life coverage into income protection and estate planning.
- They can accept locals as well as expats.
- Portable if you move from country to country.
- They offer group insurances for 10 people+. This usually results in group discounts.
- They are small enough to be boutique but have been in the expat market for years now so are well-established.
The main negative is there are sometimes better deals out there, for those that are looking for purely life insurance – although this depends on your age and many other factors.
Atlas Life often becomes a better deal if you add extra benefits (disability coverage or whatever) to the life coverage.
Do you need life insurance?
In some situations (mortgages, child support etc) life insurance is a legal requirement – at least in some countries.
Most of the demand comes from other areas, however, and many people wonder if they are overspending on insurance.
Ultimately, term life insurance is a good idea, if you have kids and dependents, or plan to have them.
With that being said, insurance is dead money if nothing happens, so it is best to not go overboard.
How much coverage you need tends to depend on:
- How much debt you have.
- What your family would face in terms of costs if you were to die.
- How liquid your assets are. Having $2m in housing or a company isn’t the same thing as a liquid investment account. If you die, it isn’t as easy to sell a house and especially a business, compared to a liquid asset with a live buy and sell price. Many online stock investments can be sold within 24 hours, with the money deposited in your beneficiaries bank account quickly. A business can take years to be sold, and sometimes it never gets sold.
- Your age and your families age.
- How much income your husband, wife or partner has. If they have considerable income, you often need less insurance.
- How old your kids are and if they want to go to university – and how expensive that university is.
What’s the difference between term and whole of life insurance?
Term life insurance is cheaper than whole of life coverage, but you don’t get anything back if you don’t die.
Whole of life is more expensive, but you can sometimes make “a profit” because it is linked to an investment.
In general, it makes sense to get insurance and investments individually.
How about disability protection?
Critical illness and disability options can be great if your income is vital for the overall family.
Spending a small amount of your income on such coverage, can be especially sensible.
Further reading
1. Atlas Life Insurance Review scrutinizes comprehensive life insurance solutions, complementing considerations highlighted in Evelyn Partners Review – This is Why You Shouldn’t Buy as an Expat.
2. The article below reviews another insurance option sold in the expat market.
