Employee Benefit Life and
Disability Cover

Most international employers whether by Expat HR corporate policy, local laws or voluntary protection of their expatriate families will protect life, accidental death for TPD Total Permanent Disability.

Employee benefit life, TPD disability insurance & Income protection

As an emerging country, Vietnam is known for higher risk for life and accidental death or disability. Most companies have headquarters HR policies to protect their Expat managers and families worldwide. Sometimes they extend to income protection or keyman insurance to protect their investment or find equivalent replacement.

Head office company policy and legal liability purchasing life insurance or their investment with key person accident coverage

Whether an MNE multinational company or a SME, the feeling for residents in Vietnam is life or personal accident protection is more in need. A few other sources of well-known risk: low level of medical providers, lack of constructions and infra-structure standards add to the feeling of overall heightened risk. As a western standard of family protection, companies purchase more life and TPD Total permanent disability cover.

Life, Accident and disability insurance in Vietnam

When it comes to business run by 1 or 2 founders; family members, bank loans or capital investment partners need protection, collateral or guarantees. Key person life and disability insurance pays a lump sum capital repayment to a list of nominated beneficiaries in case of an early death.

As in many developing countries, the value of the continuation of business often rests on the shoulders of 1 or 2 key person. Those ‘assets’ and ‘income generating’ persons need to be insured against death or disability so the capital invested, loaned or the family of the bread-winner are protected.

It is a simple life insurance, but the tricky part for insurance advisors is the value at risk calculation. When you invested -say USD5,000,000- in a business/ factory, spent 3 years building it and in the 5th year profits are starting growing fast: some assets are tangible others are goodwill. 

What are the values at risk, the brand value and physical assets to protect, the income generated. Auditors and accountants can easily value a company.

The loan value and physical assets value at risk are easy. 

More arguments arise when it comes to valuing the amount to indemnify the family, the brand value, the potential profits for the shareholders lost (or not) in case of an early death.

Then comes the finding and documenting.

It looks like purchasing plain life insurance, but it is not. 

Here are a few issues to establish at inception before the claim arise: 

– Who are the beneficiaries: individuals, families, banks, investment funds, companies?

– The proceeds needs to be paid in which jurisdictions with what taxation?

– What is the currency and countries to pay the proceeds to?

– Is there probate needed? And what paperwork is required by the insurer?

What are the applicable laws for the ‘key person’ insurance taxation or currency transfer?

Definitely a domain on the edge of individual and corporate laws. In between succession, estate or corporate asset valuations accounting and taxation; untouched by Vietnam high education.

insurance in Asia

Not only health insurance is different but most general insurance: accident, life, home, travel, office or even car insurance will be different than your past experiences.