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Life insurance for expats

More and more people are choosing to move abroad; be it for work, education or just for a change of pace and lifestyle.

This big life change can bring with it an increased level of risk, highlighting the need for adequate life cover to protect your loved ones should the worst happen.

While there’s no such product as expat life insurance, it’s often a term used to describe the life insurance options available to expats.

But exactly what policy options are available?

In this 2024 guide, we help to shed some light on the subject and answer some commonly asked questions.

Keep reading to find out everything you need to know about expat life insurance.

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Expat life insurance summary

  • It could be possible to secure expat life insurance with some insurers, particularly if you’re moving abroad temporarily and to a country that’s considered safe
  • Insurers will have different terms and conditions regarding cover for expats so it’s important to explore the market
  • You’ll need to be a UK resident to apply for life insurance through Reassured. Typically, a UK resident is someone who has lived in the UK for at least 6 months in the last year and has no plans on permanently leaving the country within the next 3 months
  • If you’re someone who often takes trips overseas, either for personal reasons or business, you’ll need to disclose this at the point of application
  • If you have an existing UK policy and you’re moving overseas, it’s important to tell your insurer and check your policy documents to see if you’ll still be covered
  • While living abroad your monthly premiums must be paid from a UK bank account for your cover to remain valid
  • Cover can be more expensive as some insurers may see living abroad as more of a risk
  • Australia is one of the most popular places to relocate with over 1.3 million British expats living there[1]

What is an expat?

An ‘expat’, or ‘expatriate’, is defined as someone who leaves their country of origin and resides in a different country for a long period of time or permanently.

People become expats due to employment opportunities, retirement or for a better quality of life. However, many expats still have mortgages, relatives and inheritance tax liabilities in their home country, so this is where expat life insurance could be important.

What is expat life insurance?

Expat life insurance is simply a standard life insurance policy that accepts expats.

It may also refer to a new or existing policy that remains valid for temporary periods abroad.

If you spend a lot of time in another country (or other countries) during any given year, it’s important to disclose this information when applying for life insurance.

This will help the insurer to accurately assess your level of risk and decide the outcome of your application.

Reassured can help arrange expat life insurance depending on your specific circumstances.

We work with a variety of insurers that could offer cover to UK residents living abroad or planning to move abroad temporarily.

Compare Life Insurance for Expats »

Can I get life insurance as an expat?

Yes, in many cases, it’s possible to get life insurance as an expat.

Life insurance applications from expats will be considered on a case-by-case basis using information relating to your travel. This can include:

  • Where you’re moving to
  • When you’re moving
  • Your reason for moving
  • Your occupation while living overseas
  • Length of stay

If you’re moving abroad on a temporary basis and the country in question is considered ‘safe’ by an insurer, your application may be accepted.

If you’re planning to move abroad permanently and within the next 3 months, or you’re travelling to a country that’s deemed as ‘high-risk’, you may be declined.

In this case, specialist cover or an international life insurance policy may be more suitable.

Do I need expat life insurance?

You may need expat life insurance if you’re moving abroad or currently living overseas and you have financial ties in your home country.

For example, you may require a UK policy if:

  • You have a mortgage in the UK
  • You have children or other relatives living in the UK
  • You have inheritance tax liabilities
  • You own a company in the UK

Life insurance provides a lump sum pay out when you pass away, offering a financial safety net for your loved ones during a difficult time.

As mentioned, Reassured can only offer life insurance to UK residents with a UK bank account.

What happens to your life insurance policy if you move abroad?

If you have an active life insurance policy and are moving abroad it’s possible that your cover will remain in place.

Some providers will allow you to maintain your cover if moving abroad, as long as your policy was taken out a certain amount of time before your move.

While living overseas, you’ll be required to continue making premium payments from a UK bank account for your cover to stay in place.

Terms and conditions will vary depending on the insurer, so if you’re considering moving abroad it’s a wise idea to let your provider know.

They'll be able to provide you with further details and provide you with relevant options.

Is my UK life insurance valid if I move abroad?

As discussed above, if you have an existing UK life insurance policy it’s possible that your cover will remain in place whilst living overseas.

However, it’s best to check your policy documents and consult with your provider to let them know of this change.

If you’re moving abroad and are trying to secure cover, you’ll need to tell the insurer about your travel plans. You may be declined if you’re permanently moving overseas within the next 3 months.

However, each insurer will have different terms and conditions regarding providing life insurance to expats.

Does life insurance cover death overseas?

Yes, generally, life insurance will cover death overseas.

If you have a valid UK policy, up to date with your monthly payments and you were honest about any travel intentions at the time of your application, you should be covered.

Most insurers require that the lump sum pay out is paid into a UK bank account.

As mentioned, it’s important to check your policy terms if you’re moving abroad.

Cost of expat life insurance

The cost of life insurance for expats will be calculated by taking your unique circumstances into consideration.

As usual, the insurer will need to know the following personal information at the point of application:

  • Age
  • BMI
  • Medical history
  • Smoker status
  • Health & wellbeing
  • Level of cover
  • Length of cover

As an expat applying for life insurance, you may be asked further questions, as previously stated, surrounding your emigration, so the insurer can gain a greater understanding of your situation.

If the insurer can supply adequate life insurance to you as an expat, you may be able to secure standard premiums depending on your personal circumstances.

If you’re moving to a high risk area (those at war, in political unrest or prone to outbreaks of disease) or the occupation you’ll be employed to do while there is considered dangerous, you may be charged a higher premium.

To secure the most affordable cover, you’ll need to compare the different offerings from various providers to make sure you’re getting a great deal.

The best expat life insurance

There isn’t a ‘best’ life insurance for expats as everyone has different needs and circumstances.

However, we have listed the most popular options of cover that could be suitable for an expat:

Level term life insurance

If you were to pass away while living abroad, a level term life insurance pay out could allow your loved ones to maintain their standard of living or move back home.

Key features:

  • A form of life insurance that lasts for a specified period of time (the term)
  • If you pass away during this term, a pay out will be made to your loved ones
  • Pay out amount (sum assured) remains fixed
  • Terms are typically between 2 - 40 years
  • Ideal for young families to help cover large expenses and/or family living costs

Decreasing term life insurance

If you’re still paying a mortgage back in the UK, decreasing term life insurance may be an ideal option as your sum assured can reduce in line with your remaining mortgage balance.

This means if you were to pass away, the pay out could help your loved ones pay off the mortgage.

Key features:

  • A form of life insurance that lasts for a specified period of time (the term)
  • If you pass away during this term, a pay out will be made to your loved ones
  • Pay out amount reduces over time
  • Terms are typically between 2 - 40 years
  • Ideal to help protect a repayment mortgage (sum assured can reduce at the same rate)

Over 50s life insurance

If you’re living with a health condition or have struggled to secure other types of life insurance, you may consider an over 50s plan. The pay out could help to cover your UK funeral costs or other key expenses after you’re gone.

Key features:

  • Provides life-time cover
  • Guarantees a pay out to loved ones when you pass away (after a 12 or 24 month waiting period)
  • Guaranteed acceptance to UK residents aged 50 - 85
  • Unlike other types of cover, the application has no medical questions
  • Lower maximum sum assured than other forms of cover

Whole of life insurance

Whole of life insurance provides lifelong cover, guaranteeing a pay out when you pass away. It may be more expensive than other types of cover, particularly for expats.

Key features:

  • Provides life-time cover
  • Guarantees a pay out to loved ones when you pass away
  • Premiums will need to be paid for the rest of your life
  • Could offer a larger payout than an over 50s plan
  • Premiums are typically higher than other types of cover

Please be aware that not all providers will offer life insurance to expats. The terms and conditions of the policies offered to expats will likely vary between providers.

Comparing quotes is essential to securing cover that meets your new requirements at a cost-effective price so you may need to shop around.

Calculator

How much life insurance does an expat need?

Enter your financial commitments below to understand the level of expat life insurance cover you need.

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£137,934 is the estimated mortgage debt per household in the UK.

The purchase of a home is likely to be the largest financial commitment any of us will make in our lifetime. Your life insurance should cover your remaining mortgage balance to allow your loved ones to stay in the family home should anything happen to you.

Source: Moneynerd.co.uk
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The average monthly household budget in the UK is £2,548 (that’s £30,576 per year), which is spent on transport, food & drink, utilities (gas, electricity, water etc), clothing, council tax and leisure activities.

With energy prices hitting a record high and the cost of living rising sharply in the UK, you may wish to factor in utility bills and family living expenses into your cover.

Source: Nimblefins.co.uk
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The average personal debt of UK adults has risen to £34,566 (not including mortgage debt), with credit cards, personal loans and overdrafts being the most common forms of debt.

Factoring in any debts into your life insurance cover means that, if they need to be paid back from your estate after your passing, your loved ones won’t miss out financially.

Source: Money.co.uk
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According to SunLife, the average cost of a funeral in the UK is £3,953 (with the overall cost of dying at £9,200).

Funeral costs have increased by 116% since 2004 and are a significant cost which should be factored into the amount of life insurance you secure.

Source: SunLife.co.uk
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When factoring in cover for your children, you may wish to calculate the amount based on how long it is until they reach financial independence.

This could include childcare (£7,000 per year for part-time care), school expenses (£1,519 per school year for uniforms, lunches, stationary etc), as well as an additional sum for further education (this could be a contribution of up to £5,000 per year).

Sources: Daynurseries.co.uk, Primarytimes.co.uk & Savethestudent.org
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2 in 5 adults say they are relying on an inheritance to fund their retirement.

Factoring in an inheritance to your sum assured could allow loved ones to live a more financially comfortable life. Alternatively, you could leave a cash gift to a charity of your choosing.

Source: Moneyage.co.uk
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If you’re lucky enough to have your own savings or are part of the 30% of UK residents who already have a life insurance policy in place, this can provide financial protection for loved ones.

By entering your current cover, savings or death in service amount you can reduce the sum assured you require.

Source: Scottishbusinessnews.net
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Which insurers offer expat life insurance?

Most UK insurers can offer life insurance to expats who travel to low risk countries for short periods of time.

However, to apply for a policy you must meet the definition of a UK resident required by the insurer and have a UK bank account to pay your monthly premiums.

We outline the different requirements in terms of UK residency for each insurer in the table below:

InsurerUK resident criteria
Legal & General Will only offer cover to those who currently live in the UK and have done so for at least 183 days (6 months) in the last tax year (6th April - 5th April the following year) and have no intention of leaving the UK within the next 3 months.
LV= Will only offer cover to those who permanently live in the UK (have lived in the UK all their lives or currently live in the UK as of today and have no intention of leaving).
Aviva Will only offer cover to those who have the legal right to live in the UK, Channel Islands, Isle of Man or Gibraltar on a permanent basis, are currently doing so and have no intention of leaving these territories permanently.
SunLife Will only offer cover to those who live at their UK address for more than 6 months of the year.
One Family Will only offer cover to those who are permanently residing in the UK.

International life insurance

International life insurance is a specialised product designed to offer financial protection for people living and working overseas.

Unlike standard life insurance, you can be covered globally.

This isn’t something Reassured currently offer, however if you’re looking for international insurance it’s important to compare providers who specialise in global coverage, as well as ensuring the policy complies with the countries laws and regulations.

Is foreign life insurance taxable in the UK?

Yes, foreign life insurance can be taxable in the UK, depending on the policy and its terms.

If you receive payouts or benefits, they may be subject to UK tax rules especially if the policy doesn’t qualify for tax exemptions.

To see if your life insurance is taxable, you should contact your insurer and review your policy for more information.

Compare expat life insurance quotes

We hope this article has helped to answer any questions you may have about securing life cover as an expat.

At Reassured, we could help you arrange expat life insurance depending on your specific circumstances (for example, where you’re moving to and for how long).

We work with a panel of major UK insurers, some which could offer cover to UK residents who travel overseas for temporary periods.

As each insurer has their own terms and conditions, our experts can help you identify which insurer is best suited to your unique circumstances.

We work hard to help you find our cheapest expat life insurance quotes, without charging you a fee.

Help protect your loved one’s financial security today.

Find Our Cheapest Expat Life Insurance Quotes »

Sources:

[1] https://www.centralmoves.co.uk/uk-expats-2024-trends-in-emigration-and-overseas-home-buying/

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