Life Insurance contracts offered by UK Life Companies are legally constructed to apply to people living in the UK and can be sold only to a UK resident at the time the policy is sold. There are no exceptions to this ruling.
Your policy, however, will not be voided if you go abroad on holiday or take a temporary work contract abroad. You would still be insured during the period abroad. When you completed your application form you will have answered several questions about your country of residence, international travel and working abroad. You must answer those questions truthfully and accurately as they applied to you at the time of the application.
As with all insurance, if you lie on your application then the Life Company will cancel your policy and refuse all claims. It is always important to be truthful.
If you change country of residence you must immediately contact your Life company to see whether they will keep your policy in force. We suggest that you do this before you leave.
Most Life companies will tell you that the UK insurance policy has to be cancelled – but you should always speak to them to check. E.g they will consider where you are moving to and what your occupation will be.
How do I get life insurance if I become an expatriate?
Most UK Life Companies have divisions which specialise in insuring expatriates – its generally referred to as international life insurance. These companies are usually based offshore from the UK, in the Channel Islands or The Isle of Man. You can arrange a policy with them through an agent or a broker throughout the world. Of course, you can also arrange the insurance over the Internet.
The premiums for International insurance policies can be paid in all major currencies and you can usually specify which currency you would want the payout to be made in. One of the advantages of these types of policies is that if there is a claim, the pay out will not be subject to the laws and regulations of the country of death – it will be subject to the laws of the country in which your Life Company is based (typically the Channel Islands or The Isle of Man). This provides much greater flexibility in how the money is handled and distributed.
If you are asked to take a medical, the insurance company will make all the arrangements for you to be examined in your new country of residence.