More than 90,000 British nationals emigrated out of the UK in the year ending June 2023, according to official statistics.
Although many Brits leave the country, there may still be insurable interests that they leave behind.
If cover was already in place before the policyholder moved abroad, that cover can remain valid depending on the policy and provider.
“If a client living or working abroad already has a UK insurance policy they took out before they left the UK, they should always check if the policy is still valid whilst they are abroad,” says Tim Boddy, director at Moneysworth, a protection advice firm.
“We suggest when asking their existing insurer they should always get a response in writing.”
At Legal & General, for example, the provider states: “If you already have a UK life insurance policy with us and you subsequently move abroad, in most cases your policy will remain valid.
“Life insurance terms are based on the information you provide when you apply for a policy…provided all the information about past, current or future residency or travel was accurately and truthfully given during the application process.”
Critical illness cover with L&G would also remain in force if the policyholder lived in or travelled to the EU, USA, Canada, Australia, New Zealand, Isle of Man or the Channel Islands, with the provider also accepting a claim from other countries if they can confirm the claim is valid.
For income protection, L&G likewise states that a policy would still pay out if the policyholder resided or travelled in the aforementioned countries, or if they resided or travelled for up to 12 consecutive months in any other part of the world.
AIG Life is another example of a provider that adopts a similar approach. Its head of technical development, Andy Roberts, says the insurer would not insist on the policies being cancelled if an existing policyholder left the UK to move abroad.
“They are underwritten at outset,” says Roberts. “We appreciate that people’s circumstances may change once a policy is on risk, and that of course includes where they may live.”
If an existing AIG Life income protection policyholder moved outside of the UK, Roberts says the provider would pay claims provided that the claimant is living in one of the provider’s 37 eligible countries, but not beyond 26 weeks if they are living elsewhere.
Policyholders would therefore need to return to an eligible country to continue receiving their monthly benefit. But the provider may consider claims that fall outside their geographical restrictions, if they are satisfied that they can obtain “sufficient and reliable” information to allow them to fully assess the claim.
William Cooper, marketing director at William Russell, an expat insurance provider, notes that restrictions such as these can be difficult for people who are building a life abroad.
