Life insurance when moving abroad

17 July 2018

The decision to move overseas can offer exciting new opportunities, and with 5.5 million UK citizens living abroad*, you’re in good company. Understandably, you’ll want to know how this big decision affects the finer details of your life, from tax planning and health coverage to whether you can get life insurance if you live abroad. So, if you’re moving for work, retirement or simply sun, sea and sand, here are the key things you need to know about overseas life insurance and moving abroad.

Does moving abroad affect my application for life insurance?

If you are looking to relocate abroad, then it is always important to speak to your life insurance provider as moving abroad may invalidate your life insurance policy. Legal & General's protection policies are only for customers living in the UK. However, we can also usually offer cover to customers who temporarily travel abroad to safe territories.

With us, we can't offer policies to customers not residing in the UK or those who plan to leave the UK permanently within the next three months. To apply for one of our life policies you must be a resident of the UK. Our definition of a UK resident is someone who is currently living in the UK and has spent at least 183 days in the UK in the last tax year.

Are there exceptions to life insurance policies if you move abroad?

Applications can be considered if you’re a Crown Employee (a member of the UK armed forces, a civil servant, a diplomat) or employed in the Merchant Navy.

We 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 cover can be offered.

If we’re able to offer you a policy, it will remain valid as long as you continue to pay your premiums from a UK bank account.

When considering life insurance, living outside the UK may present additional risks including:

  • a higher prevalence of certain diseases or infections
  •  the accessibility to health care
  • living in areas affected by armed conflict
  • political instability

There may also be tax rules and legislative requirements that apply in either the UK or in the country you’re moving to.

How is a life insurance policy affected by a move abroad?

If you already have an existing life insurance policy, provided all the information about past, current or future residency or travel was accurately and truthfully given during the application process then any life policy would continue provided the payments were kept up to date.

If you already have an existing critical illness or income protection policy or have a policy that includes waiver of premium benefit, please refer to your individual policy documents to find out more information about how these products are affected whilst overseas.

If a claim is received whilst you are outside the UK please be aware that that there may be additional difficulties or delays due to obtaining and authenticating medical evidence or other documentation necessary to assess the claim.

Of course, everyone's circumstances differ, and Legal & General will consider all reasonable applications.


*BBC Special Reports | Brits Abroad