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Protect yourself from the rising costs of living

You can’t have missed it – almost everything we use and consume is suddenly costing a lot more than it used to. It’s also having a marked impact on internationals abroad.

Protect yourself from the rising costs of living
Worried about rising costs? It's not just you -- prices are soaring across the globe. We find out why. Photo: Getty Images

Almost everyone has felt the effects of sudden cost of living increases, and for many it has had real consequences on where and how they live and work.

With soaring energy bills and increases in both food and petrol, consumer inflation in Europe hit 8.6 percent in June and could reach nine percent by the end of the summer. Those who moved abroad to work or study have felt the effects particularly keenly.

Together with the international health insurance provider, AXA – Global Healthcare, we investigate why costs have soared so quickly, and exactly how this impacts those who have made another country their home. 

What is driving the increase in living costs? 

While there’s no singular reason that living costs are increasing across the globe, there are several factors that we can point to as contributing to the problem. 

First and foremost, the coronavirus pandemic had a devastating effect on manufacturing industries and supply chains around the world. Worker illness, government shutdowns and disruptions to the supply of essential resources dealt a significant blow to global GDP in 2020, resulting in a fall of more than three percent. 

Restarting manufacturing and global logistics after months of effective shutdown subsequently led to a substantial rise in the costs of goods, as supply struggled to keep up with surging demand. Even with massive investment in logistics infrastructure, to date there are still lengthy delays supplying goods such as machine parts and electronics, leading to surging business costs.

Climate change has also played a role in the crisis. The increasing unpredictability of weather patterns over the past two years has meant that many regions around the world were impacted by severe weather events, including several in Europe. An increased incidence of heat waves and cold snaps have also placed a strain on gas reserves, leading to escalating power bills. 

Find out how taking out health insurance can help offset cost of living increases 

Of course, the war in Ukraine is having a serious impact on the cost of living, most noticeably in Europe. The World Bank has suggested it could be responsible for the biggest price shock in 50 years. As a major agricultural nation, wheat prices have begun to sharply increase following the invasion, as has the price of natural gas – Ukraine holds Europe’s second-largest reserve of the resource.

Another consequence of the Ukraine war is spiralling fuel prices. As Russia is one of the world’s top three oil exporters, its current frosty relationship with the West means that the cost of oil per barrel will remain elevated. Coupled with logistical delays in delivering gas and fuel, as an ongoing consequence of the pandemic, consumers and businesses are experiencing substantially increased transport costs. 

Boiling point: Climate change is one factor increasing the cost of living. Photo: Getty Images

How do rising costs impact internationals? 

The cost of living crisis is having a significant effect on the mental health of internationals. Research by AXA – Global Healthcare, in the form of its Mind Health Index 2022 supports this idea. 

Its research, conducted prior to the current crisis, indicated that 28 percent of non-native (international) participants rated their stress level between eight and 10 (out of 10), while 35 percent of non-natives said that financial stability was an issue causing stress. Thirty-nine percent of non-native participants believed that they faced an uncertain future when it comes to work and finances – a massive stressor, regardless of where you may be. 

The causes of this are also clearly identifiable. Primarily, many internationals simply do not have the assets to sustain repeated price shocks in terms of food or energy costs. A survey conducted by market research firm, Finaccord, found that approximately three-quarters of internationals worldwide are individual workers – ie. depending on a single income.

A further third are also students, meaning that they are paying tuition costs while trying to support themselves, whether with a local job or payments from home. Quite simply, many internationals cannot afford to pay much more for necessities, particularly at a time when wages have stagnated. 

Many internationals also lack the kind of support networks that would let them otherwise overcome economic turmoil. Earlier research by AXA revealed that 87 percent of participating internationals felt isolated and cut off from family and friends, who would otherwise be able to assist and share costs.

As a consequence, further research conducted in 2019 by AXA – Global Healthcare revealed that one in five participating internationals would return home should prices continue to rise – even though over 50 percent reported that they enjoyed a better salary and quality of life than they did at home.

The research also discovered that housing and tuition costs comprised the hardest financial pressures for internationals – with 51 percent identifying rent and housing costs, and 40 percent identifying education as more costly than expected. 

It could be stated, therefore, that prior to the global spike in the cost of living, internationals already found themselves in a tight spot, with the threat of having to return home looming over them. Now, with skyrocketing prices, excessive and prolonged stress is an even greater contributor to a range of illnesses. 

Internationals are more prone to sudden increases in costs of living. Discover how AXA’s health insurance options can ensure some certainty

Securing an international future

Moving abroad to start a new life is a costly endeavour and one that many work for years to achieve. It’s worth it, however: the experience of working or studying abroad is suggested to have a number of economic and lifestyle benefits.

That said, navigating the financial stresses of rising costs can be challenging. 

Many internationals opt to offset the challenges of rising costs with comprehensive health insurance coverage. AXA – Global Healthcare’s research shows that a quarter of internationals worry about the cost of healthcare in their new home, and would even travel abroad to seek treatment. 

Depending on where you are, unforeseen medical costs can run into the tens of thousands, meaning the difference between getting by, and having to return to your home country.

If you’re seeking a health insurance provider that offers comprehensive coverage and a range of useful benefits, you may want to consider AXA – Global Healthcare. Operating globally, the company has over 55 years of experience in covering those living and working abroad¹.

AXA – Global Healthcare policyholders get 24-7 care from personal advisors, connecting them with excellent private healthcare from a worldwide network of doctors, surgeons and specialists.

Outside of emergency care, AXA – Global Healthcare provides a number of additional benefits. Policyholders are able to access a number of annual check ups. Special care is available to those diagnosed with cancer, and mental health issues aren’t ignored – the AXA – Global Healthcare Mind Health Service¹ means that you have professionals for support wherever you may be. 

As an international, dealing with the rising costs of living can be difficult. However, you can ensure that should something happen to you, you can avoid unexpected financial burdens.

Furthermore, with AXA – Global Healthcare’s range of additional services, you can make sure health problems are identified before they become a problem, allowing you to focus on living, working and enjoying life abroad. 

Find out more about AXA’s Virtual Doctor service, mental health support and other services offered so you can enjoy life abroad with the knowledge that you’re fully covered

¹AXA has been providing International Private Medical Insurance for over 55 years

²The Mind Health Service is provided by Teladoc Health,

AXA Global Healthcare (EU) Limited. Registered in Ireland number 630468. Registered Office: Wolfe Tone House, Wolfe Tone Street, Dublin 1. AXA Global Healthcare (EU) Limited is regulated by the Central Bank of Ireland.

AXA Global Healthcare (UK) Limited. Registered in England (No. 03039521). Registered Office: 20 Gracechurch Street, London, EC3V 0BG, United Kingdom. AXA Global Healthcare (UK) Limited is authorised and regulated in the UK by the Financial Conduct Authority.

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HEALTH

EXPLAINED: How much time can parents in France take off for sick children?

If you are working in France and your child falls ill, here is what you can expect when it comes to taking leave.

EXPLAINED: How much time can parents in France take off for sick children?

Children get sick – it’s a fact of life anywhere in the world, including France. And working parents should expect to have to take some time off work to care for them.

In general, employees who need time off to care for a sick or injured child under the age of 16 may take leave. 

Is child sick leave paid in France?

In most cases, workers will not benefit from paid leave for a sick child, but they can take part of their usual paid leave allowance, in agreement with their employer. 

That being said, your company or industry may have negotiated a collective agreement for paid child sick leave, so it will depend on where you work. 

When taking unpaid leave to care for your child, you will still be eligible for social security benefits.

The legal minimum for unpaid leave to care for a sick child is three days per year – rising to five days if the child is under a year old, or if the parent is responsible for three children or more under the age of 16. This generally covers, with the help of the family support network (aka grandparents) the usual gamut of minor childhood illnesses.

The absence must be justified to the employer by a medical certificate.

READ MORE: How sick leave pay in France compares to other countries in Europe

Remember, this is just a legal minimum. Businesses in France tend to be much more flexible on parental leave to care for a sick or injured child, wherever possible – and parents may use part of their paid leave allowance, in agreement with their employer.

But, for the record, any employee on parental leave is also protected from dismissal in all but the most serious circumstances, such as gross misconduct.

What if I need more than the normal allotment? 

In cases of more serious illnesses or injury, parents of dependent children are entitled to longer parental leave – regardless of their length of service.

Employees have a right to up to 310 working days leave – a total 14 months – over any three year period. Depending on the nature of the child’s condition, this leave period can be renewed. 

This extended leave can be divided up as required, to create periods of part-time work, for example, or separated into blocks of absence to care for the child.

Are there any state benefits available when taking unpaid leave?

Workers who need this form of extended leave are not entitled to their salary while they are absent from work – but can apply for Allocation journalière de présence parentale (AJPP).

The AJPP daily allowance usually amounts to €62.44 (€31.22 per half-day) for full-time employees – and is paid for a maximum of 22 days per month over a period of three years – is intended to allow parents to care for a seriously ill, injured or disabled child. 

READ MORE: 5 things to know about visiting a doctor in France

It is paid to one parent at a time over that period, and may be renewed if necessary.

In the worst case scenario, minimum legal parental leave in the case of the death of a child is 14 days for a child under 25.

If the child was over 25, the minimum legal parental leave is 12 days – unless the deceased was a parent in their own right, in which case it is extended to a minimum of 14 days.

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