Guide
Life insurance and moving abroad explained
Published: 25 March 2025
Moving abroad to live and work or retire is exciting. But there’s lots to think about. Including how moving may affect your existing life insurance policy.
Over 475,000 people1 left the UK last year to start a new life abroad. And many of them will have carefully considered their finances before they take the leap. Changes to your banking and tax planning are obvious considerations. But did you know that moving overseas could invalidate any life insurance policies you have?
In particular, you may want to check your policy carefully if you’re taking on a riskier job or moving to a potentially dangerous country. In this guide we take a look at how moving abroad could affect your life insurance.
Is my existing UK life insurance valid if I move abroad?
The first thing to do is to take a look at your policy documents. Some insurers only offer cover to people who are a permanent resident in the UK. So, if you passed away while living outside the country, it could invalidate your policy. That means your beneficiaries wouldn’t receive a payout.
Other insurers may be happy to continue your cover when you’re living abroad. Your current life insurance terms are based on the information you provided when you started the plan. And insurers understand that things change over time. As long as you didn’t know you would be moving abroad when you took out your policy, you should be covered when you move.
If you’re unsure what would happen to your life insurance if you moved abroad, contact your provider. Tell them where you plan to go and for how long. Sometimes they will allow you to keep your cover. As long as you continue paying your life insurance premiums from a UK bank account and have a UK address.
Keeping your existing life insurance if you are moving abroad permanently might be harder. Your provider may change the level of cover they can provide or revoke the cover altogether.
If you’re leaving the UK permanently, you may want to consider getting expat life insurance. You can get international life insurance policies that cover you in multiple countries. Or you can take out a life insurance policy in the country you’ve moved to.
What happens to my life insurance if I move abroad?
If you’ve checked with your life insurance provider that you’ll still be covered when you move, then the policy will continue as normal. However, you’ll need to keep paying your premiums in GBP from a UK bank account. And remain as a UK resident.
You’ll still be able to make changes to your policy within the terms and conditions as if you were based in the UK.
Should I tell my life insurance provider if I’m moving abroad?
It's best to double check your policy document or call your insurer if you’re unsure whether you’ll be covered when you’re abroad. You’ll need to let them know which country you’re moving to and for how long.
There’s no need to tell your life insurer if you’re going overseas for a holiday or travelling for work.
Where you move to and whether you plan to come back to the UK will affect whether they insurer 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.
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. In the UK you can place a life insurance policy in trust. This means it’s not considered part of your estate for inheritance tax. However, this may not be the case in other countries.
And of course, some insurers simply don’t support any kind of life insurance abroad. So, it’s worth checking whether your plan will become invalid if you move overseas.
Can I apply for life insurance if I’m moving abroad to work?
It’s possible to apply for life insurance if you’re moving abroad to work, but you should tell the insurer. It could affect how they calculate how much cover you need. Say you planned to go to work and live in a country they class as more dangerous. This would put you at a higher risk so the insurer would want to know about it.
They’re likely to ask questions, such as:
- What’s the purpose of your travel? Are you retiring or changing your work location? The purpose will help identify and calculate cover.
- Which country will you live in? Some countries are more dangerous than others, so this affects the threats you might face.
- What might you be exposed to? Different jobs come with different risks. A frontline health worker might face more dangers than a banker.
- How long do you plan to stay there? Are you settling down for retirement, or have you been seconded to the country for a few months? Some insurers will factor-in a short-term stay.
- What financial ties do you have to the place? Are you buying a retirement home there or starting a business? The more financial ties, the more cover you may need.
- What financial ties will you maintain in the UK? Will you keep a property or investments back home? Are there people who depend on you financially there? These ties will also be used to calculate the right level of cover.
Can I apply for life insurance if I’m moving abroad permanently?
Vitality life insurance products are available only to UK residents. This means you must be permanent resident living in the UK when you buy or change your policy. A person is considered to be a resident if they lived in a country for 183 days or more in the previous twelve months. HMRC and other governments around the world use this method to determine a person’s residency status.
We can usually offer cover to customers who temporarily travel abroad to safe territories. But if you plan to leave the UK permanently, you won't be able to buy life insurance with Vitality.
Can ‘digital nomads’ get life insurance?
It is possible to get life insurance when you work whilst travelling around. But it’s unlikely that your UK plan will be suitable for your needs. Especially if you plan to spend more than six months out of the country each year. Or you cut all financial ties with the UK.
As you're probably moving between countries frequently, you might want to consider expat life insurance. This insurance is designed for people who travel often as it gives you cover in a wide range of countries. It will also cover you in your home country too.
It’s usually only available through a specialist provider. They’ll ask you about your reasons for travel, what type of work you do and how long you plan to be away. Like any other life insurance company, they won’t provide cover if you plan to travel to a dangerous country.
Does life insurance cover death overseas?
In most cases, life insurance covers death overseas. But there are several caveats to be aware of. If you’re in any doubt, always check with your insurer.
If you passed away while on holiday, travelling for work or even backpacking, you’d normally be covered. As long as you are a permanent resident in the UK, you will usually be protected.
The same goes if you are living abroad. If your policy documents say you’re covered when living overseas, your loved ones should get a payout.
There are a few circumstances where your cover could be invalidated. Sometimes, insurers will put exclusions around death abroad in certain countries or scenarios. These include:
- If you travel to a dangerous area that isn’t covered by your policy
- If you die as a result of a dangerous activity that you’re not insured for
- If you die by suicide abroad within a year of taking out the policy
- If you’re no longer a UK resident
- If your policy lapses while you’re abroad
- If you cut all financial ties with the UK and had no more links
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 2023, we paid out 99.7% of life insurance 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.
*Vitality Claims and Benefits Report, 2024
Relevant guides and articles
-
Life insurance payouts
![Woman listening to music whilst writing in a notebook]()
Find out how life insurance payouts work, what to do if you receive one and answers to other key questions. Read our guide here.
-
Life insurance beneficiaries
![$name]()
What is a life insurance beneficiary? Find out everything you need to know about beneficiaries, putting life insurance into a trust, and more, in this guide.
-
Life insurance and inheritance tax
![Man researching on a laptop]()
In this guide, we will explain inheritance tax and the inheritance tax threshold and how to use a life insurance policy to pay an inheritance tax bill.
