Life insurance and moving abroad explained
There’s lots to think about when you decide to move abroad for work or retirement. Or if you decide to become an expat. One of the most important considerations is your finances, including whether you’ll still be covered by your life insurance when you live outside the UK.
In this article we explain what happens to your UK life insurance when you move abroad, whether it remains valid, how expat policies work and whether residency affects your cover. Cover is subject to policy terms, conditions and underwriting. Eligibility and claims are not guaranteed.
What happens to your life insurance when moving abroad?
This all depends on what it says in your policy documents. If your insurer confirms that your cover can continue when you move, it may continue as normal.
However, there are some key factors to keeping your UK policy going:
- Where you move to
- How long you’ll be gone
- Whether you plan to return to the UK
- Some policies require premium payments from a UK bank account
- Some policies require you to remain a UK resident
Will your life insurance remain valid after moving abroad?
Some providers may allow you to continue your life insurance cover when living abroad. Whether cover continues after you move depends on your insurer's terms, underwriting requirements and the details of your move.
To keep the policy in place, you may need to pay your premiums from a UK bank account and maintain a UK address, depending on your policy terms.
If you’re not moving to a country restricted by the insurer and you plan to return to the UK in the future, you may be able to make changes to your policy, subject to its terms and conditions.
Be sure to check your policy, as some insurers only offer cover to people who permanently reside in the UK. If your policy requires you to remain a UK resident and you no longer meet that requirement, your cover may no longer remain valid.
If you plan to relocate permanently to another country and no longer have a UK bank account, you may find it hard to keep your UK policy in place. A better alternative may be a policy in the country you move to or an expat policy. We explain expat policies later in the article.
Do insurers need to be notified when you move overseas?
Depending on the terms of your policy, you may be required to inform your insurer of a move overseas. If you are required to and fail to do so, this could affect future claims depending on the policy terms.
Which country you move to and whether you plan to come back to the UK will affect whether they can continue to offer you the same cover. If, where you move to, increases the risk to the insurer, they may offer you another plan on different terms. If you’re moving permanently, they may not be able to continue your cover at all.
And if you have a life insurance policy in trust, the laws of the country you’re moving to could affect things too. Some countries’ inheritance rules can make things complicated when it comes to life insurance payouts. You may not get the same protections on your policy as you do when living in the UK.
There’s no need to tell your life insurer if you’re going overseas for a holiday or travelling for work.
Can I apply for life insurance if I'm moving abroad to work?
You may be able to apply for life insurance, but you must let the insurer know that you plan to move abroad for work. Where you move to and what you do for a living will affect the cover you get and the price you pay for your insurance.
For example, if you were moving to a region with a high risk of war or terrorism, that would put you at higher risk to the insurer. As would taking on a role such as offshore drilling work, off-piste ski guide or work that takes you to remote regions of the world.
You can expect questions such as:
- Where will you live?
- What type of work will you do?
- What risks will you be exposed to?
- Is this a secondment or relocation?
- What financial ties will you have abroad?
- What financial ties will you keep in the UK?
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Can I apply for life insurance if I'm moving abroad permanently?
Many insurers, including Vitality, require applicants to be UK residents. A person is considered to be UK resident if they have lived in the UK for 183 days or more within the current tax year. Each tax year is treated separately for tax residency purposes. HMRC and other governments around the world use this method to determine a person’s residency status.
If you know you’re moving abroad permanently, you won't be able to buy life insurance with Vitality because you’ll no longer meet the residency requirement.
However, there are specialist expat policies that can cover you even if you move abroad permanently, within certain criteria.
How do specialist expat policies support life insurance needs when moving abroad?
If you plan to work and live outside of your country of nationality permanently, you’ll be classed as an expat. Many UK life insurers may not offer cover if you’re no longer a resident of the UK, so specialist expat life insurance can fill this gap, subject to underwriting criteria.
These policies are designed for people who spend most of their time travelling or working outside of their home country. For example, a UK national living in the USA.
Some expat life insurance offers global cover, excluding locations restricted by the insurer. And other policies can be valid only for the country where you move to. Each country will have its own life insurance regulations, so check you’re fully insured as an expat before taking out a policy.
Which one you choose depends on whether you’re likely to travel regularly for long periods of time. Or whether you’re settled in a new country permanently. A specialist insurer or broker can help you decide what’s best for your circumstances.
How do expat destinations influence eligibility for life insurance moving abroad?
Where you move to as an expat has a huge influence on whether you’re eligible for cover and the cost of your expat life insurance. Insurers will assess the risk of:
- Political stability in the region
- Health infrastructure
- Prevalence of natural disasters
- Crime rate
The riskier the region or country you’re moving to, the higher the cost of your cover. And in some cases, such as war zones or areas of poor healthcare, they may not offer you cover at all.
What happens to expats’ cover if they relocate again after moving abroad?
This depends on what type of expat life insurance you’ve taken out. If a policy offers global cover, then they usually allow you to move freely among the regions they insure.
A standard UK policy may let you relocate temporarily to another country as long as it’s considered a low-risk location. UK insurers are only likely to allow multiple moves if you remain a UK resident.
It’s always best to check with your insurer when you relocate. Depending on where you move to, they may change the terms of your policy. Or the policy could become invalid.
What paperwork and medical evidence do you need for life insurance moving abroad?
If you have an existing UK policy, you won’t need to go through the application process again, but you will need to let the insurer know that you’re moving. They will usually want to know:
- Country you’re moving to. You may need to provide your new address.
- How long you plan to be there. If it’s permanent or temporary.
- Reason for the move.
- Your occupation if you’re moving for work. You may be asked for your work contract.
- What financial ties you’ll still have in the UK.
You may be asked to provide:
- Evidence of your ongoing UK residency
- Details of a UK bank account
- Proof of ongoing financial ties to the UK
With new policies, you’ll go through the complete application process. If you know you’re moving abroad when you apply, you must let the insurer know. If you retain your UK residency, you may still be able to apply for UK life insurance. If not, you’ll usually need to apply for an expat policy. For new applicants, you’ll often need to provide:
- Proof of identity. Usually your passport.
- Proof of address and current country of residence.
- Medical history, if requested. Sometimes you may need a medical exam or blood test.
- Details about where you’re moving to.
- Proof of new residency.
- Work permit and employment details if relevant.
How does moving abroad affect your life insurance premiums, benefits, and overall eligibility?
Customers with an existing UK life insurance policy will already have a premium that reflects the risks the life insurer thinks they pose to making a claim. When you tell your insurer you’re moving abroad, this can change the risk and therefore the premium and potentially your eligibility for cover.
Insurers will first assess the risk of the country you plan to move to. If it’s politically unstable, provides poor healthcare, has a high risk of disease, then they may increase your premiums to compensate. However, once they accept you on these new terms then cover will continue in line with the updated policy terms.
If the risk is too great, or other factors, like a risky occupation also increase the risk to the insurer, then they may decline to offer you cover at all.
What tax, currency, and residency issues influence life insurance moving abroad?
If you remain a UK resident and subject to UK tax regulation after you move abroad then you may be able to keep the tax-free status of a life insurance payout, however, this treatment depends on your individual circumstances and may change. Check with a tax adviser before you move.
If you’re no longer a UK resident when you move abroad, then you may find the country you move to may tax your life insurance payout. Each country has its own taxation rules when it comes to life insurance abroad, so please check local tax rules.
Some UK insurers will only make a life insurance payment to a UK bank account in sterling. So, if you want your payout in a different currency or made to an overseas account, you’ll need to take out a global life insurance policy.
Key takeaways
- Some providers may allow you to continue your cover when you’re living abroad. To keep the policy in place, you may need to pay your premiums from a UK bank account and remain as a UK resident. Both depend on your policy terms.
- As long as you’re not moving to a country restricted by the insurer and you plan to return to the UK in the future, you may be able to make changes to your policy within the terms and conditions as if you were based in the UK. But check your policy details to make sure.
- If you plan to relocate permanently to another country, a better alternative to a UK policy may be an expat policy. Expat policies are designed for people who spend most of their time travelling or working outside of their home country.
- Where you move to as an expat can influence whether you’re eligible for cover and the cost of your life insurance. The riskier the region or country you’re moving to, in the policy of the insurer, the higher the potential cost of your cover.
Vitality life insurance
Want to know more about life insurance or thinking about taking out a policy? Here are some of the benefits of taking out life insurance with Vitality:
- A brand you can trust - In 2024, we paid out 98.9% of all Life Cover claims.*
- Get a lower monthly premium upfront when you add Optimiser to your plan. Keep your premiums low when you stay active.
- Access to Vitality partner discounts and rewards.
- Get free no-obligation advice. Our advisers offer expert advice to help you make the right decisions.
You're not alone in choosing Vitality. Over 2 million lives in the UK are now covered by our insurance, and we’re here to support you too.
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*VitalityLife Claims and Shared Value Report 2025
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