Expat Life Insurance: Cover for UK Expats Living Abroad

Do You Need Life Insurance as a UK Expat?

If anyone depends on your income, or if you have debts that would pass to someone else when you die, life insurance is one of the most useful protections you can have. For a UK expat it matters even more, because your family may be living in a country that is not their own, with no state support and a long distance from relatives.

This guide explains how life insurance works for UK expats: the types of cover, what happens to a UK policy when you move, how much you need, what affects the price, how it is taxed and how a claim works from abroad. It is part of our expat insurance guide. Last reviewed.

What Life Insurance Does

You pay a regular premium. If you die during the term of the policy, the insurer pays an agreed sum to the people you name. That sum can clear a mortgage, replace lost income, pay for children’s education or cover funeral costs and other bills. If you do not die during the term, a standard term policy pays nothing and ends.

It protects the people you leave behind, not you. That makes it different from a pension, which builds income for your own later life, and from critical illness cover, which pays while you are alive.

Who Needs It, and Who May Not

What Happens to Your UK Life Insurance When You Move Abroad?

This depends entirely on the policy, so read the terms. A UK policy usually falls into one of four groups.

• Worldwide cover that continues. The policy keeps working wherever you live, though the insurer may want to be told.
• Cover limited to certain countries. Some policies exclude specific places, often those with higher risks.
• Cover that lasts only for a limited time abroad. A policy may stay valid for a number of months or years outside the UK, then end or need to be replaced.
• Cover that requires a UK address. A few policies require you to remain a UK resident to keep it.

The safe approach is the same in every case. Tell the insurer in writing before you move, ask them to confirm in writing how the policy will work, and keep the reply. If the policy will not follow you, look for a replacement before you leave, while you are still a UK resident and your options are widest. If your health has changed since you took out the old policy, a new one will cost more or may exclude conditions, so do not cancel an existing policy until the new one is in force.

Can You Buy Life Insurance After You Have Moved Abroad?

Often yes, but the choice is narrower. Many UK insurers will write cover only for people who live in the UK. Insurers who specialise in international cover will insure expats, and the terms depend on the country where you live, your nationality, your occupation and your health.

• UK policies for people who travel for work. Some insurers will cover people who spend limited time abroad.
• International policies. Written for expats and usually available in several currencies.
• Local policies. Offered by insurers in the country where you live. They may not follow you if you move.

Some countries are harder to insure than others, because of the risk of conflict, crime, disease or poor access to medical evidence. An adviser who works with several insurers can usually find the best fit more quickly than you can by contacting insurers one at a time.

Types of Life Insurance

Level term insurance

The amount paid on death stays the same for the whole term. It suits goals that do not shrink, such as providing a lump sum for a family or covering an interest-only mortgage.

Decreasing term insurance

The amount reduces over time, usually in line with a repayment mortgage. It is cheaper than level term because the insurer’s risk falls as the debt is paid down.

Increasing term insurance

The amount rises each year, usually to keep pace with inflation. Premiums rise as well.

Family income benefit

Instead of a lump sum, the policy pays a regular income to your family for the rest of the term. It can be cheaper than level term and suits families who want to replace a salary.

Whole of life insurance

Cover that lasts your whole life and pays out whenever you die. It costs more than term cover because a payout is certain. It is often used to provide for an inheritance tax bill or to leave a legacy, and is less common as pure family protection.

Joint life insurance

One policy covering two people, paying out on the first death or the second. First-death cover is usually cheaper than two single policies, though it ends after one payout, leaving the survivor with no cover of their own.

How Much Life Insurance Do You Need?

There is no standard answer, and rules of thumb such as a multiple of your salary are only a starting point. A more reliable method works from what your family would need.

1. Add up the debts. The mortgage, loans and other borrowings that would still be owed.
2. Add up the income your family would need. Monthly living costs, school fees and other regular spending, for as long as they would need it.
3. Add one-off costs. Funeral, repatriation of the body or the family, legal costs and the cost of moving.
4. Subtract what already exists. Savings, existing life cover, employer benefits, the value of the home and any pension that pays out on death.
5. Convert for location. The cost of living where your family would be after your death, which might not be where you live now.
6. Add a margin. For inflation and the unexpected.

If the number looks large, it may be possible to cover the largest risks first, such as the mortgage and the early years of income, and add to the cover later. A review once a year, or when your life changes, keeps it in line with your needs.

What Affects the Price?

• Age. The younger you are when you start, the cheaper the cover. Premiums for a given policy generally rise with age at application.
• Health and family medical history. Existing conditions can raise the price, lead to exclusions or lead to a refusal.
• Smoking and vaping. Smokers pay considerably more.
• Weight, blood pressure and cholesterol. Insurers often ask for these.
• Country of residence. Some countries carry a surcharge, or are excluded, because of local risks.
• Occupation and hobbies. Higher-risk jobs and activities such as diving or climbing can increase the price.
• Amount and term. More cover for longer costs more.
• Type of policy. Whole of life costs the most.
• Guaranteed or reviewable premium. A guaranteed premium stays the same. A reviewable one can rise.

A lower premium can mean a narrower policy. Compare what is covered, not only what you pay.

Which Currency Should the Policy Pay In?

Most UK policies pay in pounds, and your family’s spending may be in another currency. If the pound weakens against the currency they live in, the payout buys less. Choosing a policy that pays in the currency your family will need is one way to remove this risk, and some international policies offer a choice. You pay the premium in the policy currency, so the choice also affects what you spend each month.

How Your Country of Residence Affects Cover

Insurers treat countries differently, and where you live can decide whether you are accepted, what you pay and what is excluded.

• Low-risk countries. Most insurers accept residents of countries with good healthcare, stable conditions and reliable medical evidence, often at standard rates.
• Higher-risk countries. Insurers may add a loading, restrict the amount or exclude certain causes of death, because of conflict, crime, disease or limited medical care.
• Countries insurers will not cover. Some places are excluded altogether. If you move to one, an existing policy may stop covering you.
• Short stays and visits. Travel to a higher-risk country for work can be treated differently from living there.

Insurers also look at how long you plan to live somewhere, your visa status and whether you will be in the country or just based there. Be ready to give your address and your plans for the next few years.

Occupation, Hobbies and Travel

Your job and how you spend your free time are both part of the application.

• Office-based roles usually attract standard terms.
• Offshore, military, security, aviation and construction roles often cost more or need specialist cover.
• Hobbies such as diving, climbing, motor sport or aviation can lead to a price loading or an exclusion.
• Travel. Frequent travel to certain regions can affect terms.

If you change jobs or take up a new hobby, check whether you need to tell the insurer. Failing to disclose a change can be treated as a breach of the policy terms.

Cover for a Partner Who Does Not Work

A partner who stays at home or earns little still has a value. If they died, you might need to pay for childcare, school fees, cleaning and cooking, or take time off work. Cover on a non-earning partner is usually much cheaper than cover on the main earner, and it can make the difference between coping and not coping. Include them in your calculation.

Cover on Children

Life insurance on children is usually small in amount and is designed to cover funeral costs and time off work. Some critical illness policies include children’s cover at no extra cost. Check what is included before buying a separate policy.

If You Own Property in More Than One Country

Expats often hold a UK property, perhaps rented out, alongside a home overseas. Each mortgage is a separate debt, and each may need cover.

• Match each loan to the right type of cover. A repayment mortgage suits decreasing term. An interest-only loan needs level cover.
• Think about the currency of each loan and of the payout.
• Check whether rental income would continue, and who would manage the property, if you died.
• Consider whether a lender requires cover as a condition of the loan.

See our guide to expat mortgage protection and our expat insurance guide for how this fits with other cover. If you are borrowing to buy, see expat mortgages.

What Your Pension Pays When You Die

The more your pension pays on death, the less life cover you need. The position varies a lot between types of pension.

Check each scheme’s rules and the beneficiary nomination on file. The UK rules on pensions and inheritance tax change from 6 April 2027.

How to Compare Life Insurance Quotes

An Annual Review Checklist

• Has your family changed, with a birth, marriage, divorce or death?
• Have your debts grown or been paid off?
• Has your income changed?
• Have you moved country, or will you?
• Do the beneficiaries still reflect your wishes?
• Does the currency still suit your family?
• Has your health changed in a way you need to tell the insurer about? Check the policy terms first.
• Is the policy still the right type and length?

Business and Key Person Cover

If you own or run a business, the loss of an owner or a key employee can threaten the company as well as the family. Business life cover can pay off a loan, buy out a deceased partner’s share or give the business time to recover.

Putting a Policy in Trust

In the UK, a life insurance policy can be written in trust. This can speed up payment, because the money does not wait for probate, and it can keep the payout outside your estate for inheritance tax. Whether a trust is useful for you depends on where you live, where your family lives and where your assets are, because other countries have their own rules on trusts and succession. Take advice from someone who understands both UK and local law before you set one up.

Life Insurance, Your Pension and a Final Salary Decision

Life cover and pensions interact. A pension may pay a lump sum or a spouse’s income if you die, and that reduces the cover you need. A final salary pension usually pays a spouse’s pension but nothing to children, and this is one of the reasons people consider a transfer.

If your main reason for considering a transfer is to leave money to your family, life insurance may achieve the same aim at lower cost and without giving up a guaranteed income. Read our guide to final salary pension transfers for expats before you decide, and consider a full pension review.

Tax on Life Insurance Payouts

In the UK, the proceeds of a term life policy are generally not subject to income tax, and a policy written in trust can fall outside your estate for inheritance tax. The position can be different where you or your family live. Some countries treat insurance payouts as income, and some apply local inheritance or estate taxes. Premiums are generally paid from taxed income and do not normally attract tax relief. Check the rules for your country with a local tax adviser.

Applying for Cover: What to Expect

1. Fact find. Your age, health, occupation, country and what you want to cover.
2. Quotes. Prices from the insurers that will accept you.
3. Application. Detailed medical and lifestyle questions. Answer every one fully.
4. Underwriting. The insurer may ask for a medical report, a nurse screening or tests. For expats, this may be arranged in the country where you live.
5. Offer. The insurer accepts, may add a price loading or an exclusion, or declines.
6. Start. Cover begins once you accept and pay. Keep a copy of the policy documents.

Non-disclosure is the commonest reason for a rejected claim. If you are unsure whether something is relevant, include it.

Making a Claim from Abroad

• Make sure your family knows the policy exists and where to find the documents.
• Keep the insurer’s contact details and the policy number with your will and other important papers.
• Your family will usually need to provide a death certificate and the claim form. If death occurred abroad, local certificates may need translation or legalisation.
• Tell the insurer promptly, because policies have time limits.
• If the policy is in trust, the trustees make the claim.

Common Mistakes

• Not telling the insurer about a move.
• Cancelling an existing policy before the new one starts.
• Leaving cover until after a diagnosis, when it may be unavailable.
• Not answering medical questions fully.
• Choosing on price alone.
• Forgetting the partner, who may also need cover.
• Naming the wrong beneficiary, or not updating it after a divorce or birth.
• Ignoring currency.
• Never reviewing the amount.

Three Illustrative Examples

These are simplified, hypothetical examples. They are not real clients and not a recommendation.

Example 1: A parent in Hong Kong

A parent with two children and a mortgage holds a UK policy that excludes residence outside the UK after a year. The review finds the gap, and arranges a replacement international policy before the old one lapses, paying in the currency the family will use.

Example 2: A couple in Spain

A couple with no children and a small mortgage decide that decreasing term cover on both lives is enough, set to match the loan.

Example 3: A final salary pension and a wish to leave money to children

Someone with a valuable final salary pension is tempted to transfer to leave the pot to their children. The review looks at life cover as a way of providing for them without giving up the guaranteed income.

Speaking to Us

We speak to clients by phone or video from our offices in Hong Kong and Kuala Lumpur. We can look at the cover you hold, what happens when you move and which insurers may be suitable. Book a call

Frequently Asked Questions

1. Can I get life insurance as a UK expat?
Often yes, from international insurers and some UK ones, depending on the country where you live, your health and your occupation.

2. Does my UK life insurance still work if I move abroad?
It depends on the policy. Check the terms and tell the insurer in writing.

3. Do I have to tell my insurer I am moving?
Usually yes. Failure to do so can put a claim at risk.

4. How much life insurance do I need?
Enough to cover your debts, your family’s income needs and one-off costs, less what they already have.

5. What is the cheapest type of life insurance?
Decreasing term is usually the cheapest, followed by level term. Whole of life costs the most.

6. Is life insurance more expensive for expats?
It can be, depending on the country, the occupation and your health. Compare quotes.

7. Can I get life insurance with a health condition?
Often yes, with a higher premium or an exclusion, though some conditions lead to a refusal.

8. Which currency does a policy pay in?
Many UK policies pay in pounds. Some international policies offer other currencies.

9. Is life insurance tax free?
In the UK the payout from a term policy is generally free of income tax. Other countries may tax it differently.

10. What is a trust, and do I need one?
A trust can speed payment and keep the payout out of your UK estate. Whether it suits you depends on where you and your family live.

11. Can my family claim if I die abroad?
Yes, though paperwork such as a local death certificate may need translation.

12. Does life insurance cover death by any cause?
Most policies cover death from illness or accident, with exclusions such as suicide in the first year or dangerous activities. Check the exclusions.

13. Should I cancel my UK policy when I move?
Not until a replacement is in place and you know that it will start.

14. What is the difference between life insurance and critical illness cover?
Life insurance pays on death. Critical illness cover pays on diagnosis of a listed serious illness while you are alive.

15. Can life insurance replace a pension transfer?
It can address the wish to leave money to family without giving up guaranteed benefits. Take advice before deciding.

16. What if I move country again?
Check the policy is portable and tell the insurer before you move.

17. Can I get joint life insurance as an expat?
Often yes. First-death joint cover can be cheaper than two policies, but it ends after one payout.

18. How often should I review my cover?
Once a year, and when your circumstances change, such as a birth, a move or a new loan.

19. Can I get life insurance if I live in a high-risk country?
Sometimes, with a higher premium or restrictions. Some countries are excluded altogether.

20. Do I need life insurance for a partner who does not work?
It can be worthwhile, because replacing their unpaid work costs money. It is usually cheaper than cover on the main earner.

21. Does my job or hobby affect my cover?
Yes. Higher-risk jobs and activities can increase the price or lead to exclusions.

22. Does my pension pay anything when I die?
It depends on the type. A final salary pension usually pays a spouse’s pension, while a defined contribution pot can often be passed on.

23. Do I need cover for a UK buy-to-let mortgage?
If your family relies on the property, or a lender requires it, cover can be worthwhile.

24. Can I buy life insurance for my children?
Yes, usually for small amounts, though some critical illness policies already include children’s cover.

Glossary

• Term insurance: Cover for a fixed period.
• Level term: The amount stays the same.
• Decreasing term: The amount falls over time.
• Whole of life: Cover for your entire life.
• Family income benefit: A regular income to your family.
• Underwriting: The insurer’s assessment of risk.
• Loading: An extra charge for a higher risk.
• Exclusion: Something the policy does not cover.
• Trust: A legal arrangement that holds the payout for your beneficiaries.
• Beneficiary: The person who receives the payout.
• Non-disclosure: Failing to tell the insurer something relevant.

Thinking About Life Insurance Abroad?

Speak to us before you cancel a policy or buy a new one. Book a call

Risk warning: Insurance policies have terms, limits and exclusions. Tax rules can change and depend on your circumstances.