My client has life and critical illness cover and is moving to Kenya. Will the UK policy still be valid or will it be better to purchase new cover locally?
Kenya is a relatively stable country. However, an insurance company needs to take the following into account when underwriting an application:
• There is much social unrest, with increasingly more violent crime in the cities.
• In recent months, there has also been an increase in violent attacks against foreign visitors.
• HIV and AIDS are widespread, and transmission may occur through sub-standard medical facilities.
As a result, a life cover application would usually be rated according to the occupation, intended location and how long your client intends to stay there. A critical illness (CI) cover application would normally only be considered if the client were in an office-based or professional occupation and on a short-term contract. Even then, the insurer may exclude some of the conditions covered, such as, HIV cover, for example, but this may then be reinstated on return to the UK, subject to satisfactory medical evidence.
Existing clients can normally expect to keep their full CI cover in force ' although it may be worth checking if any geographical restrictions apply to either the cover or any optional benefits, such as waiver of premium. If they do, the client may prefer to keep the benefits on the policy, even if they cannot be used, as it would save having to reinstate them on their return to the UK.
Some companies may require a CI claim to be evidenced by a UK consultant. However, since a client with a critical illness would no doubt choose to return home where possible, this will be met when he or she is examined or treated in the UK.
In summary, a client may be better off keeping an existing policy than trying to take out a new one. This is because it may well offer a wider range of cover and at a cheaper price than a new policy.
