All about insurance and it’s benefits

As soon as you are posted abroad for a longer period, the previous insurance policies may no longer be effective. Therefore, you should inform yourself in good time about necessary measures for your health, life and pension insurance and offshore pension plans for expats.

Statutory pension

Whether an expatriate continues to pay into the statutory pension insurance depends on whether he has a foreign employment contract or whether he is still employed by his company employer. If the latter is the case, the company continues to pay the contributions to the pension and social insurance in that country. Who completely abroad changes, is subject to the social security regulations of the respective country. If you pay into the local pension insurance, you will later receive benefits from the foreign pension insurance – in individual cases from all countries in which you have worked for a longer period of time. This is problem-free for countries that have concluded a special agreement with some countries, such as European countries, USA, Canada, Chile, Israel, Japan, Korea, China, Morocco and Tunisia. If you have not yet met your minimum contribution periods to the pension fund, you should voluntarily pay into the pension insurance during your stay abroad. The advice centers of the  Pension Insurance provide information.

offshore pension plans for expats

Company pension scheme

Depending on the country in which you work, the regulations for company pension schemes are different: in some countries company pension schemes are compulsory, in others they are completely unknown. If you are employed by a large company, your company pension will usually continue unchanged in few. This is particularly useful if the employee returns to the company after his stay abroad. If you are planning to retire abroad, it can be worthwhile to pay into the company pension scheme of the foreign company. Senior executives who are posted to different countries can, under certain circumstances, agree on what is known as an offshore solution with their employers. The company pension is handled by an external pension provider in a third country and does not need to be regulated again for every assignment abroad. We recommend talking to the department responsible for international assignments.

Health insurance

 People with statutory health insurance who go to countries with which there is no social security agreement are still insured if they have a  employment contract and the posting is limited in time. Otherwise, the employee must take out special private international health insurance.Those with private health insurance need a place of residence in that country, because the insurance relationship ends without a its contact address.