Every few years it’s a good idea to revisit the list of topics most important to expatriates before moving abroad with the family for an overseas assignment. The place to start is to break down the list of necessary items between what the employer is providing the expatriate when moving abroad, and what the expatriate needs to do for himself / herself before the assignment. The employer provided programs for moving abroad are separated between the essential and non-essential programs. Please note, we are assuming in this example that an expatriate is moving abroad for at least 3 years and is taking a spouse and children with them. The needed program below, with the exception of kidnap and ransom insurance, are needed by expatriates in all host countries.
- International Medical Insurance: The U.S. medical insurance program should be immediately replaced with a global medical insurance program that will work in the host country but also allow for elective care in the home country. Global medical insurance plans are portable and move with each family member as they travel internationally. The spouse does not need to reside with the employee to be under the same global program.
- Global Dental Insurance: Like the medical insurance, a dental plan that works anywhere in the world is needed, but also allows dental services to be rendered in the home country, or in the U.S.
- International Life and Disability Insurance: These lines are typically 100% employer paid
- The International Relocation and Move Abroad: A special vendor that will move clothes, furniture, etc. from the home country to the host country as well as provide the moving insurance when moving abroad.
- International Emergency Evacuation, Repatriation, and Assistance: A special vendor that performs a range of service from emergency "life-flight" out of country in the case of a medical emergency to helping an expatriate family replace lost documents like passports.
- Physical Exams: Pre-departure physicals, vaccinations, and immunizations are needed for most countries today.
What are optional programs the employer can provide for the move abroad?
- International EAP (Employee Assistance Program): Typically a telephonic program that help expatriate families work through personal issues that can have a negative impact on the international assignment.
- Kidnap and Ransom Insurance: In many countries today, kidnap and ransom insurance has become an essential offering as the world becomes a more dangerous place. For certain executives in many countries, you can place kidnap and ransom insurance in the essential list above. In other countries, it may be voluntary.
- School Payments: Tuition for an international school for children when they arrive in the host country after moving abroad.
What are the programs that expatriates must consider for themselves before moving abroad?
- Vacant Home Insurance: Expatriate families that decide to keep a house back in the home country, and that home becomes empty or unoccupied, need special insurance. Most expatriates are not aware that this situation requires special coverage.
- International Renters Insurance: When household goods are moved abroad personal effects and valuable articles need to be insured from perils such as fire, wind, theft, smoke, lightning, vandalism, etc.
- Individual life insurance: An additional amount of insurance over the benefit provided by the employer which is normally limited to just two times salary, or a whole life insurance policy called permanent insurance with a savings element.
- A Personal Kidnap and Ransom Insurance Policy: If employers have a kidnap and ransom insurance policy in place for expatriates they are not allowed to discuss the details with the expatriates themselves. Other employers may have no programs in place or sub-par programs that are not adequate for the host country. If unsure, expatriates need to error on the side of protecting their family and purchasing a family kidnap and ransom insurance policy.
An interesting note; When surveyed, most global employers (and even the large multinational employers) did not offer expatriates the voluntary suite of international products described in the four bullet points above. These programs cost an employer nothing and premiums paid by the employee are not business expenses eligible for reimbursement. However, because employers don’t provide solutions and these lines of coverage are hard for expatriates to find on their own in many countries, many go without adequate coverage. This ultimately will expose the employer to liability.