Life insurance for expats: why it matters and how it works

What is life insurance for expats?

Most expats think about health insurance first, and rightly so. But if someone depends on you financially, life insurance for expats deserves the same attention. It is a simple idea: if you die while the policy is in force, the insurer pays a lump sum to the people you have chosen, your beneficiaries.

Health insurance pays for your medical care. Life insurance protects the people you leave behind. The money can help them pay the rent or the mortgage, continue the children's education, settle debts or simply give them time to reorganise their lives without financial pressure.

An international life policy is designed for people who live outside their home country or who move often. Because it is valid worldwide, the cover does not stop when you change country, which is not always the case with a local or home-country policy.

Why does life insurance matter more when you live abroad?

Life abroad brings real opportunities, but it can also make a family more financially fragile than it would be at home. A few common situations:

• One income for the whole family. Many expat families rely on one main salary. In some countries, a partner cannot easily work, for example because of visa conditions.
• Costs in two countries. A mortgage at home, rent abroad, international school fees: obligations that do not stop if the main earner dies.
• Moving back. If the worst happens, the family may want or need to return home, with the costs of moving and starting again.
• Fewer safety nets. Depending on your nationality and situation, the social protection you would have at home may be limited or harder to access once you live abroad.

None of these situations is pleasant to think about. But a lump sum paid quickly to your family can make a difficult time much easier to manage.

Is life cover from my employer or home country enough?

Some expats already have some life cover, and it is worth checking what it really offers:

• Employer cover is usually linked to your job. If you resign, are made redundant or change employer, it may end. The amount is often a multiple of your salary set by the employer, which may not match your family's needs.
• A policy from your home country may have conditions on where you live. Some insurers may restrict cover or new applications for people living abroad, so read the terms or ask the insurer before you rely on it.
• A local policy in your country of residence may stop or become difficult to keep when you move again.

An international policy can sit alongside these, filling the gap and following you wherever your career takes you. If you run a business or manage a team, group cover is another option: see our company and SME plans.

How much life cover do you need?

There is no single right amount: it depends on your family, your debts and your plans. A simple way to start is to add up what your family would need, then subtract what is already available:

1. Debts: mortgage, loans and other amounts that would need to be repaid.
2. Income: how many years of your income your family would need to adjust.
3. Children: school and university fees until they are independent.
4. One-off costs: moving home, legal formalities and other immediate expenses.
5. Minus: savings, existing life cover and other resources your family could use.

This is only a starting point, not personal financial advice. An advisor can help you think it through, and it is a good idea to review the amount after major life events, such as a new child, a new home or a move to another country.

How does our international life insurance work?

Be Protected Abroad offers international life insurance designed for expats and globally mobile families. The key points are simple:

• A lump sum up to US$350,000 paid to your beneficiaries.
• Valid worldwide, so your cover follows you if you move or travel.
• Open to new applicants aged 18 to 65.

As with any life policy, the insurer will ask you some questions before accepting your application, and the exact conditions and exclusions are set out in the policy wording. Our advisors explain them clearly before you commit.

As an independent advisor, our advice is free: you pay the same premium as going direct. Since 2019, we have helped 8,000+ expats protect themselves and their families. If you are also reviewing your medical cover, our guide to health insurance for expat families is a good next read.

Tips before you apply for life insurance abroad

• Do not wait too long. Age and health generally affect whether and on what terms you can be insured, so applying earlier usually gives you more choice.
• Answer every question honestly. Incomplete or inaccurate answers can put a future payment at risk.
• Name your beneficiaries clearly and update them after a marriage, a separation or a birth.
• Tell someone you trust that the policy exists and where to find the documents.
• Think about currency. A lump sum in US dollars may suit a family that lives or plans to live in several countries.
• Review your cover regularly, as your family and your debts change.

Life insurance is a personal decision, and it helps to talk it through. Talk to one of our advisors on WhatsApp, by video call or by message: they will answer your questions and explain your options, with no obligation.

Useful resource: World Health Organization: universal health coverage