Does Your Life Insurance Still Work If You Move Abroad?

A UK life insurance policy does not always stop when you move abroad, and it does not always carry on as before. What happens depends on your insurer, your policy wording and where you are going. This guide explains what insurers check, what can go wrong, and what to do before you leave.

This guide is general information, not personal advice. Your policy documents decide what applies to you.

The short answer

Many insurers will keep an existing policy running if you tell them about the move, keep paying the premiums and remain within the policy terms. Some limit or change cover for people who live overseas. A few will cancel cover or refuse a claim if you did not disclose the move.

Aviva’s guidance, for example, says you can usually keep cover after moving abroad if you keep paying from a UK bank account, but that some policy terms may be changed, reduced or removed. Other insurers apply their own rules, so check yours.

What insurers look at

Residency

Many UK policies are written for people who live in the UK. Insurers set their own tests. One major insurer describes residency as living in a country for 183 or more days in the previous twelve months, while other guidance refers to six months in a tax year. Where the line falls depends on the wording, so read it.

Where you are going

Some countries carry more risk, for example because of conflict, health risks or limited emergency services. Insurers may restrict cover, add an extra premium or exclude certain causes of death in those places.

How long you will stay

A short work assignment is treated differently from a permanent move. Holidays and short trips usually need no notice. A move for work should be reported.

What you do there

Occupation and hobbies matter. Hazardous work or sports can lead to exclusions, such as diving or working offshore.

What can go wrong

• Non-disclosure. If you do not tell the insurer about a material change, a claim could be reduced or refused.
• Lapse. If premiums stop because the UK bank account closes, the policy can lapse.
• Exclusions. Cover may not apply to certain causes of death in some countries.
• Residency limits. The policy may end or change if you stop being a UK resident.
• Cutting UK ties. Some policies assume you keep a UK address and bank account.
• Currency. The payout is in sterling, which may not match your family’s spending.

What to do before you leave

1. Read the policy wording. Look for sections on residence, travel, exclusions and premium payment.
2. Contact the insurer. Tell them the country, the reason for the move and how long you expect to be away. Ask for the answer in writing.
3. Check the payment method. Confirm whether premiums must come from a UK account and keep it open.
4. Check your cover amount. Moving may change what you need. Our guide on how much life insurance expats need shows how to rework it.
5. Compare with international cover. If your insurer will not continue, get quotes from international insurers before the old policy ends.
6. Do not cancel first. Keep the old policy until the new one is in force, because your health or age may have changed.
7. Keep records. Store the policy documents where your family can find them.

When to buy new international cover

International life cover is written for people who live abroad and can usually follow you between countries. It can be worth it when:

• your insurer will not cover residents of your new country
• you plan to move more than once
• you want the payout in another currency
• you are moving permanently
• your premiums cannot be paid from the UK

Underwriting still applies. Health conditions, smoking, age and occupation affect price and whether cover is offered. Our guide to term vs whole of life for expats helps you choose the type of policy.

Moving for different reasons

The effect of a move depends on why you are going.

A temporary work assignment

If you expect to return within a few years, many insurers are relaxed, especially if you keep a UK address and bank account. Tell them anyway. Ask whether the policy stays in force during the assignment and whether there is a cap on the time you can spend abroad.

A permanent move

A permanent move is more likely to change the terms. The insurer may say the policy no longer fits because you are not a UK resident. In that case you may need to replace it with international or local cover. Do this before cancelling the old policy.

A digital nomad lifestyle

If you move between countries, cover that depends on UK residency can become hard to rely on. Check whether the policy limits time abroad each year and whether an international policy would suit better.

A move to a high-risk country

Some destinations bring exclusions, extra premiums or a refusal to cover. The country’s political situation and the availability of medical care both matter. If you are moving to such a place, ask the insurer directly and get the answer in writing.

What happens at claim time

A claim is where problems show. The insurer will check that:

• the policy was in force
• premiums were paid up to date
• information given at the start was accurate
• the cause of death is not excluded
• any residency condition was met

Your family will need a death certificate. If you die abroad, it may be issued in another language, so a certified translation may be needed. Tell your family where the documents are and who the insurer is. Our guide to how much life insurance expats need includes repatriation costs, which can be higher than people expect.

What to ask your insurer

A short, clear message gets a clearer answer. Say where you are going, when, for how long and what you will be doing. Then ask:

1. Will my policy stay in force while I live there?
2. Are there any exclusions or loadings for that country?
3. Do I need to keep a UK address, bank account or both?
4. What happens if my stay becomes permanent?
5. Can the policy be converted or transferred to international cover, and on what terms?
6. How will a claim be paid and in which currency?

Keep the reply. If a dispute arises later, a written answer from the insurer is the best evidence of what you were told.

Paying the premiums from abroad

Payment is a quiet cause of lapsed policies. A direct debit usually needs a UK bank account in sterling, and that account must stay open. Practical points:

• keep enough money in the account to cover the premium
• update your contact details so reminders reach you
• check how the insurer treats a failed payment and how long the grace period is
• tell your family which account pays the premium, so it is not closed by mistake

If you plan to close your UK accounts, ask the insurer about other payment methods first. Some insurers accept card payments or overseas accounts. Others do not.

Moving to a policy abroad

If you buy a new policy, compare it with the old one and avoid a gap. A new policy may ask about your health again, so it will reflect any condition you have developed since you bought the first one. Premiums are also based on your current age, which is higher than when you started.

For that reason it is usually better to keep the old policy if it can still be kept, and add cover if you need more. If you must replace it, make sure the new policy has started before the old one ends. Check that the new policy has no exclusion that the old one did not have.

Insurers selling to people who live abroad may also ask about tax residence and where you plan to live in future. Give accurate answers, because errors can affect a claim.

Tax and the estate

The way a payout is taxed depends on the policy and the country. In the UK, a payout from a policy written in trust normally goes to the beneficiaries without becoming part of the estate, while one that is not in trust may be counted in it for inheritance tax. Moving abroad does not by itself change that, but your domicile and residence position can affect whether UK inheritance tax applies to your estate. Take advice from a tax professional who understands both countries.

Employer cover

Death-in-service cover through a UK employer usually ends when you leave the job or if you are no longer on the UK payroll. If an overseas employer provides cover, check the amount, who gets the payout and what happens if you change jobs. Never assume employer cover will continue.

Other policies to check

Moving abroad also affects other cover. Critical illness, income protection and health policies often have their own residency rules. See our guides on critical illness cover abroad and our expat insurance hub. Moving can also affect income protection for expats and expat health insurance. For the life cover options themselves, see our page on life insurance for expats. Health cover has its own residency rules too: see expat health insurance vs the NHS for what you can and cannot rely on.

Frequently asked questions

Is my UK life insurance valid if I move abroad?

Often yes, if you tell the insurer, keep paying and stay within the terms. Check the wording, because some policies change or end cover.

Do I have to tell my insurer I am moving?

For a move, yes. A failure to disclose could affect a claim. Holidays and short trips usually need no notice.

Can I keep paying from a UK bank account?

Many insurers require it. Keep the account open and funded.

What if my insurer will not cover my new country?

Get quotes from an international insurer before you cancel the old policy.

Does life insurance pay out if I die overseas?

Usually, unless the cause of death is excluded or the policy has residency or travel limits. Check the exclusions.

This article is for information only and is not financial advice. Insurer rules differ and can change. Take regulated advice and read your policy before acting.