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Panama: Setting Up Life Insurance

Panama is a favourite destination of expats because of its beautiful landscape and modern infrastructure. Panama City is Central America’s only First World city. The Pan-American Highway makes it easy to travel around the country, and high-speed Internet is offered in most places.

The Tocumen International Airport can take you nearly anywhere in the world, and often without any layovers. With only a 3 hour flight time to Miami, Panama is a fantastic base for those doing business in the US.

Panama is generally safe, but like anywhere else in the world, you can’t predict the future. Whether you’re the adventurous type, enjoy outdoor activities or just want to immerse yourself in Panama’s laid-back culture, it’s important to make sure that you have life insurance.

Every expat – no matter where they’re living – should have an adequate life insurance policy.

The Problem with Expats Getting Life Insurance in Panama

Life insurance is a critical piece of coverage that every adult should have, especially if you have a family.

If you should die unexpectedly, life insurance will provide a payout to your family that will provide them with financial security.

The payout from life insurance can be used to pay for:

  • Rent/mortgage payments
  • College tuition
  • Groceries
  • Utilities and everyday expenses

The goal is to ensure that your passing doesn’t leave your family with a financial burden they cannot handle.

It provides peace of mind that if anything happens to you, your family will be covered. They won’t have to struggle to make ends meet.

If you’re an expat in Panama, life insurance may not be the first thing on your mind, especially if you already have a policy in your home country. Won’t it cover you while you’re in Panama? Not necessarily.

Many life insurance policies have stipulations that you have to live in the country for at least half the year. If you’re spending most of your time in Panama, your insurance company may say that the claim is invalid if you die while you’re overseas.

Your life insurance policy should give you peace of mind that your family will have financial security in case of your death. Knowing there’s a possibility they may deny your claim robs you of that peace of mind.

Without a valid life insurance policy, you’ll never know for sure whether your family will receive a payout if you should die unexpectedly in Panama.

Life insurance is just one piece of the puzzle. What about critical illness? If you were to have a heart attack or stroke, how would you pay for your medical bills? Your health coverage from your home country won’t cover care in Panama (or likely any other foreign country).

Without critical illness insurance, you may be saddled with medical bills if you’re faced with a serious medical emergency.

The Solution: Expat Life Insurance in Panama

If a life insurance policy from your home country won’t cut it, why not just purchase a policy from an insurer in Panama?

The problem with this approach is that you may be purchasing a policy you don’t understand. Spanish is Panama’s official language. Sure, English is spoken by a great many people, but legal documents, like a life insurance policy, will be written in Spanish.

Unless you are fluent in Spanish to a near-native level, you may not fully comprehend the terms and conditions of your policy. Exemptions and coverage options may not be clear.

No one wants to sign up for and pay for a policy they don’t understand. You risk having inadequate coverage for your family, leaving their financial security at risk.

Some local insurers may also be apprehensive about providing policies to foreigners. Unless you’re a resident or on the path to becoming a citizen, you may have a hard time even finding an insurance company willing to work with you.

So, what’s the solution? Expat life insurance. There are even no medical exam options available.

Life insurance policies that are designed for expats aren’t tied to your location. They’re also written in your native language, so you know:

  • The terms and conditions of the policy
  • What’s covered and what’s not
  • Your coverage limits
  • How to file a claim

Expat insurance will follow you wherever you go. Whether your career takes you somewhere new or you want a change of scenery, you can rest assured that your life insurance policy will still be valid and provide the coverage you need.

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