Working overseas can be a bitter-sweet moment. On the one hand, you get to reap a handful of benefits.
For instance, foreign nationals who work in Denmark are covered by the social security system as soon as they are employed. This can include health insurance, sick benefits, family benefits, and more.
However, working overseas could also mean leaving your family behind. And you can be a financial burden in case something unprecedented happen to you.
This is where having life insurance in Denmark could be handy.
Why Buy Life Insurance in Denmark?
Working overseas means providing for your family. It also means that you are helping the economy of your country of origin through remittances. Hence, it only makes sense that you are financially protected.
That said, we have listed down eight reasons you should buy life insurance while working in Denmark:
Pay Off Debt
Many financial planners would agree that the first step to financial freedom is to pay off your debt. And while there are many tips and methods that can help you do that, there is a workaround here.
Depending on your policy, you can use your life insurance to ease your burden.
For one, you can cash-in on your policy to make payments. What's important is that you can pay your premium regularly.
You can also use your insurance policy as loan collateral, and you can use your investment earnings for payment. However, we suggest that you take the advice of a tax expert. That way, you will know the tax implications this might incur.
The only downside is that you might be unable to use your benefits in the future. So, might as well find another way to pay off your debt if your insurance will come in handy in worst-case scenarios.
Cover Medical Cost
It is possible to get sick and suffer from critical illness while working overseas. This can be due to various reasons like homesickness, the lack of time to prepare a healthy meal, and your work nature.
Another thing you should be wary about is accidents.
Sure, your employment can provide sickness and hospital benefits. But it can only take effect if you are employed.
Meanwhile, some employee benefits only work if you have work-related issues. So, if you had an accident while going to work, there is a possibility that you will have to cover your expenses.
This could mean that you will be unable to send money to your loved ones. Hence, to prevent that from happening, it would be ideal that you have an accident and health insurance.
For one, it allows you to cover your medical bills without having to sacrifice your remittance. All you need to do is ensure that your insurance can protect you while working abroad.
Grow Your Retirement Fund
There will come a time when we need to retire. It can be due to old age or because we would want to start a venture of our own.
After all, who wants to be away from their loved ones for too long?
Regardless, it would be best that you have a retirement fund. The only caveat is that you will need years before you can achieve financial security.
But you do not have to wait that long if you have life insurance in Denmark. There are insurance products that come with investments, like Variable Universal Life (VUL) insurance.
What VUL insurance does is that it allows you to invest and make modifications to your coverage without the hassle. Thus, you can build your wealth through time. And you can use this to augment your retirement fund.
If you feel like it is time for you to retire and go back home, you do not have to think twice.
Build Your Estate
We all want to leave a legacy for our family. It can be a ploy of land, a house, or your business. However, your loved ones might encounter issues regarding estate taxes.
An estate tax is an imposed fee on estates whose value exceeds a certain amount.
Sure, your spouse might not be subject to pay an estate tax, depending on your country's taxation law. But what about your kids and other beneficiaries?
Luckily, they do not have to worry too much about it if you are insured.
For one, life insurance comes with death benefits. Meaning, your family will receive a large sum of money in case of your untimely passing. And they can use that fund to cover the estate taxes.
As a result, they can have what is rightfully theirs.
Protect Your Hard Earned Money
The sacrifices you need to make to work in Denmark are incomparable. However, the family you left behind will be eager to wait for the day when you are ready to come back home for good.
That said, it would be ideal to put your financial affairs in order. This includes paying off your debt, saving for your retirement, and having life insurance.
Doing so allows you to protect and maximize your hard-earned money. But more importantly, you get to secure your family's future.
That's because when you have life insurance in Denmark, you enable your loved ones to live life as usual. It ensures that you all have peace of mind, knowing that you can pull out enough funds if something unprecedented happens to you.
Luckily, having life insurance allows you to protect your money and make it grow using its investment components. And you can do all this while working overseas.