Russia: Setting Up Life Insurance

Russia is an amazing country that offers a world of fun, excitement and new life experiences to expats. Massive in size, the country spans nine time zones and has a population of 145+ million people. As an expat, there’s a lot that you should consider when moving to Russia, and life insurance should top your list.

Along with proper insurance, learning basic phrases and how to speak the language should be a top priority if you’re living outside of Moscow.

You’ll need a basic understanding to order food, sign documents and go about daily life. Insurance, on the other hand, requires an in-depth understanding of the language that most expats can’t achieve.

Why Term Life Insurance Matters for an Expat

Term life life insurance is coverage you take out for your family and/or loved ones – you won’t be around to enjoy it. Russia is a beautiful country, but there are risks in every expat hotspot. Some regions of the country are also exceptionally dangerous, leading to higher risks of death.

If you were to die, how would your family pay for:

  • Burial costs
  • Food
  • Utilities
  • Education
  • Rent and/or mortgage
  • Basic life necessities

When you die, you’re leaving someone behind. Life insurance is the responsible way to lessen the severity of your death on your family’s finances.

Critical illness insurance is another option to consider. If you get sick and have a significant medical emergency, there’s as chance that even with health insurance, you’ll have medical bills arrive in the mail.

One way to protect yourself from this unexpected debt is to take out a critical illness insurance policy that fills in the gaps that most policies have. No one wants to be anxious and nervous that going to the emergency room because of a significant health scare will leave them with debt that makes it impossible to pay their bills.

It’s paramount that you leave some financial security behind for your loved ones. Insurance allows your family to remain financially stable upon your demise. And in the case of critical illness insurance, the policy will offer you protections you need to stay in optimal health while exploring all that Russia has to offer.

Russia’s Insurance Industry is in Trouble

If you’re living in Russia, you may be considering setting up a meeting with an insurance agent. You’ll seek out life insurance in the country, fill out paperwork and hope that everything goes as expected. The issue is that if you don’t understand the contract because it’s almost certainly written in Russian. You’ll have a significant issue knowing what you’re signing.

You may be signing a policy with a slew of exceptions (it happens often), leading you to pay for coverage that’s severely lacking in the protections you truly need.

Another concern? Russia’s life insurance industry is tumbling. Reports from May 2019 found that the once rapidly growing industry has come to a halt. In many circumstances, insurers were losing more customers.

The reversal in policies led to a 5% drop in policyholders in a single quarter. This means more risk for clients with insurance from Russian providers.

While there may be new insurance products introduced to the market, there’s also a chance that prices will spike. It’s often better to seek out insurance overseas, from a company that offers expat term life insurance, because you’ll be confident that the policy you take out will be there tomorrow if your family needs it.

Obtaining Expat Life Insurance

When seeking out life insurance, you want to be sure that you obtain a policy specifically for expat term life insurance. The reason you need an expat’s insurance policy is simple: peace of mind.

You won’t be around to fight back against insurers that may find loopholes to not pay your beneficiary,

A common loophole is your residency when filling out your paperwork. You may have lived in Sweden and want to give Russia a try. You put your Swedish address and then when the insurer learns that you were living in Russia, they’ll deny the claim. There’s also the concern that a lot of policies have exemptions for anyone living outside of their country for 180 days or more.

Expat policies are specifically written with the expat lifestyle in mind. You’ll be able to confidently live in Russia – or most other countries – and your life insurance will continue following you.

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