UK Expatriate Life Insurance

Can I take out a UK life insurance policy if I am working abroad as an expatriate?

Many people are working abroad, which in some cases will mean that they spend most of that time out of the UK, whilst retaining UK citizenship, making them an expatriate. For a while, a company which sent its workers abroad would take out life insurance on their behalf, through brokers such as Multinational Underwriters Inc or Expat Financial. These companies offer corporate or group policies specifically for international employers and do also offer individual international policies.

However, recently companies have not been taking up these policies in as many numbers. A decent benefits package for junior expatriates may not be as cost-effective as simply providing a higher salary. But when you send someone abroad on work, being able to turn to your employer should you find yourself in a crisis is probably more valuable that a pay package that has been slightly inflated.

But you are not on your own when it comes to life insurance overseas. International brokers offer insurance deals for those companies that do recognise the importance of insuring their travelling employees. Should this be the case, an international package with a UK insurer is usually less problematic that taking out policies with local organisations for expatriate employees. Using a local insurance provider exposes the company to regulatory regimes that may be exclusive or restrictive. For instance, there may be restrictions on foreign currency that prevent expats from receiving any benefits in a currency like US dollars which is regarded as stable. Also, the length of the stay in that country may preclude an employee from membership of a local insurance scheme.

So, no matter what kind of insurance you are looking for, and even if you have found an employer who will offer you insurance as part of your package for working, international insurance is the most appropriate option for international travellers. It doesn't matter if your are an expat or not, the welfare of your family should something unexpected happen to you is a major concern. You do though have an advantage with international life insurance that a stay-in-the-UK policyholder will not have.

International policies are payable in stable currencies, such as UK sterling, wherever you are. You can get medical examinations wherever you are and can pay premiums by wire transfer, cheques or by credit cards over the internet. You will not be subject to the taxes and regulations that can hold policies sold within national jurisdictions within a straitjacket.

Offshore life insurance may also provide substantial liquidity, borrowing at below-market rates from the investment account, and tax free appreciation of investments.

 

 

 

 

 

 

 

© AskFinancially.com 2008

Life Insurance

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