The Foreign Service Journal, March 2013

THE FOREIGN SERVICE JOURNAL | MARCH 2013 41 While younger employees may be at a lower statistical risk of a disabling illness, they also generally have a lower financial capacity to absorb that risk. tants, Lloyd’s of London is the only insurance underwriter offering it, and even that is limited coverage through a number of resellers. The American Foreign Service Protective Association offers a policy underwritten by Lloyd’s that offers two years of ben- efits of up to $3,000 per month and an optional $250,000 lump sum payment. While this coverage is far less than that which is available to U.S.-resident employees, it could go a long way toward paying off a mortgage, funding college savings plans, or helping a spouse or partner launch a new career. Alternatively, Low Load Insurance Services of Tampa, Fla., provides limited coverage, also underwritten by Lloyd’s, to federal employees who are posted overseas for no more than three years in a row. But that would obviously not be suitable for the many Foreign Service personnel who routinely work overseas for much longer periods. Many public-sector and private-sector employees residing in the United States have employer-sponsored DI coverage that will replace about 60 percent of gross income to age 65 or beyond. They are also eligible to purchase affordable DI-gap insurance that will replace most of their lost income. The lack of any comparable program for members of the Foreign Ser- vice leaves them at a distinct disadvantage in this area. Until better coverage becomes available for Foreign Service members, they should explore with a financial adviser pos- sible strategies to protect themselves financially. n