Statista found that in the year ending December 2023, over half a million people left the UK to live abroad. If you’re one of these Brits taking the leap then you’ll know that it can be a stressful endeavor, with a million and one things to think about and get into order.
Whether you are taking the leap to move abroad for work, retirement or to chase the sun, Legal and General have a comprehensive guide on everything you need to know about overseas life insurance and moving abroad.
Key things to think about when navigating life insurance whilst abroad
- Continue paying your life insurance premiums from a UK bank account
- Have a UK address
- Tell the insurance company about your move
- Check all policy documents are valid
- Prove you have ‘insurable interest,’ like a mortgage
- Share which country you will be moving to
- Advise how long you intend to live abroad for
- Share what your occupation will be
What is ‘expat life insurance’?
When talking about ‘Expat life insurance’ it can have a few different meanings
- A life insurance policy taken out by UK applicants where the cover remains valid during periods of living abroad
- A life insurance policy taken out by expats while they’re living in another country, valid for that county alone
- An ‘international insurance’ policy which offers cover in multiple countries or worldwide
If you currently have a UK life insurance policy, this may still be valid, but you need to check whether this still covers you whilst you are abroad and how long for. You can take out a new life insurance policy in the country you’ll be moving to, but you will need to do additional research into which policy is best for you. If a long-term international life insurance policy is best suited for your lifestyle, you may need to contact a specialist insurer to get detailed advice on this.
Applying for life insurance if you’re moving abroad
You have to be a UK resident to apply for a Legal & General life insurance policy – someone who is currently living in the country or has spent at least 183 days in the UK in the last tax year. If you plan to leave the UK permanently, Legal and General may not be able to offer you a life insurance policy. More likely, you would be able to get cover for temporary travel abroad to safe territories.
Applying for UK life insurance if you are already living overseas
Some insurers may offer life insurance for expats if they can prove they have ‘insurable interest’ in the UK. Including:
- A mortgage
- Financial dependents
- Businesses
- A possible Inheritance Tax liability
Who can apply for ‘expat life insurance’?
Generally speaking, your insurance provider will take into account whether the travel or residency is temporary or permanent, whether there are any specific risks in the countries or territories you have told us about, along with the periods of time involved, before deciding if they want to cover you.
Why is life insurance for expats difficult to secure?
UK insurance companies generally cover UK consumers. Additionally, there may also be tax rules and legislative requirements that apply in either the UK (or the country you’re moving to) that make life insurance for expats more challenging to arrange. Depending on where you’re living, this could include:
- A higher prevalence of certain diseases or infections
- Less access to healthcare
- Armed conflict
- Political instability
These can also be reasons why taking life insurance out as an expat is a good idea. If you are living in parts of the world where these risks are more prevalent, and you were to pass away, you would want your loved ones to be protected.
Does life insurance cover death while living overseas?
If you were to pass away while living overseas and a claim is made on your life insurance, your beneficiaries could receive a life insurance payout, if you provided accurate information in your life insurance application.
Choosing a life insurance policy is a personal unique based on the individual, make sure to do your own research for the policy best for you. For more details, please click through to Legal and General’s guide, here: https://www.legalandgeneral.com/insurance/life-insurance/lifestyle/life-insurance-moving-abroad/
