Known as a good country to live and work in, Norway has become more and more popular among ex-expatriates from Europe and further afield including the USA. If you’re planning to move there for business or you’re already settling into your life, here’s some advice on life insurance and why it’s a good idea to invest in it.
Being young and healthy, we often underestimate the value of well-chosen insurance. Many things that cause the need for life insurance are seen by younger people as a long shot, and so we decide to move this investment to another time.
After all, it is additional spending that doesn’t give you anything immediate in return, and you may never be forced to use it.
Plus when it comes to life insurance, in some cases, you actually won’t be entitled to the receivables on this account but your loved ones will so you need to consider it insurance for your family. When you die the insurance protects your family from the consequences of your death or the loss of health (depending on the terms of the policy).
Why Life Insurance?
You could ask – ok, but why invest in it now, when I am completely fine, and there is no risk that my health will worsen soon?
The answer is simple – we are now living in uncertain times, for example, the outbreak of coronavirus in Wuhan, China that’s now a global pandemic. Anything can and will happen at any time. Plus the older and less healthy you get, the more difficult it is to be accepted and get a policy, as the insurance companies may find you too high-risk.
Besides, a health issue is not the only danger to losing your life, here is always a probability of a fatal accident.
Norway has seen a massive drop in vehicle fatalities however if you drive or travel by road the risk remains with the latest statistics from Statista being 20 deaths per million inhabitants. Therefore losing life or health in the car crash or having an unpredicted accident is still a real threat to shortening your life.
To prevent difficult consequences for your family, invest in life insurance as it covers the death of the insured person, as well as serious diseases or disability. When is it worth to invest in it? There are a few cases in which it is definitely recommended. First applies to workers in the country who have family in the country or abroad – even temporary ones. Second – when you are moving out from Norway to the countries that tend to have higher prices for insurance rates.
How to get life insurance in Norway? The most important thing you will need is the personal number call “Fødselsnummer” in the Norwegian language. Plus there is an age requirement. You won’t be able to apply to any of them, including the one protecting your family from the consequences of your death, after crossing the age of 67 and for the policies regarding diseases and disability, the border age is respectively 57 and 54.
Know What You’re Getting
When purchasing life insurance in Norway, you should pay attention to the terminology of the policy. Even though many foreign customers are convinced that they’re buying a fully comprehensive policy, covering them in every eventuality, they may only be getting the policy which protects their relatives in case of death in an accident.
The misunderstanding of the policies is because the Norwegians call both variants (i.e. insurance for death in an accident and insurance from death by disease or other health issues) a “life insurance”.
Whereas in the Norwegian language they have two names i.e. ulykkesforsikring (from the accidents) and livsforsikring (from death).
: Article prepared in cooperation with LOCALMARKET.