Fewer Life Insurance Options For Expats

expat network

Fewer Life Insurance Options For Expats

Recent research suggests that only 16% of UK insurance companies offer life insurance products to British citizens living abroad.
This was a substantial reduction from the previous year’s figure of 33% and indicates that British expats are now struggling to find adequate life insurance to meet their needs. Also in the survey, by insurance advisers Unusual Risks, it was established that only 8% of providers are prepared to accept an application for critical illness cover from expats.

Chris Morgan, lead financial adviser of Unusual Risks, said: “Over the last year there has been a shift in the availability for life insurance products for British expats. The majority of the mainstream UK insurers such as Legal & General, Friends Life and Aviva have all now withdrawn from offering this type of cover. Our survey has established that very few UK insurers will now consider offering cover to British expats.

“There are still many groups of British expats who have genuine reasons for needing a UK based life assurance plan, such as those with property interests, outstanding mortgages or tax interests in the UK. We have also met British expats who require life assurance to protect family members and children who are still resident in the UK.”.

Unusual Risks has recently launched a fee-based advice service that is designed to help British expats who may be finding it difficult to find life cover. It has access to specialist insurers which are friendly towards expats and are able to arrange life insurance at discounted premiums, without any commissions deducted from the policy.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.