Life insurance is one of those things you set up, file away and forget about, which is exactly why it causes problems when you move abroad. A policy that worked perfectly in Surrey might behave very differently once you're living in Dubai or Valencia.
Will your UK policy still pay out?
It depends on the wording. Many UK policies taken out while you lived here continue to cover you abroad, but some restrict cover in certain countries, after a set period away, or if you take up risky work or hobbies. A few require you to tell the insurer when you move, and not doing so can give them grounds to refuse a claim.
- Dig out your policy documents and look for sections on residence, travel and changes in circumstances.
- Tell your insurer you're moving and ask them to confirm your cover in writing.
- Keep paying the premiums from a UK account if you can. Missed payments are the most common way policies lapse.
Taking out new cover once you've moved
Most UK insurers won't offer new policies to people who already live abroad. If you need more cover, for example after buying a home or having a child, you'll usually be looking at international life insurance or a local provider in your new country. It's often easier, and cheaper, to review your cover before you leave.
Dubai and Spain specifics
- Dubai: UAE mortgage lenders normally require life cover, and some employers offer death-in-service benefits. Check how much these actually pay and whether they stop when you change jobs.
- Spain: Spanish banks often push their own life policies alongside a mortgage. You may be able to use a different policy, so compare before you sign.
Don't forget tax and currency
A large payout can still fall into the UK inheritance tax net, especially under the residence-based rules introduced in April 2025. Writing a policy in trust is a common way to keep it outside your estate. It's also worth thinking about currency: if your family will spend the money in euros or dirhams, a sterling payout can lose value if the exchange rate moves against you.
A quick checklist
- Confirm your existing cover in writing.
- Check any employer or mortgage-linked cover.
- Review the amount you need for your new life.
- Ask whether your policy should be written in trust.
Next steps
If you'd like someone to review your cover before or after your move, Expat Confidant can introduce you to a vetted, regulated adviser who works with expats.
This guide is general information, not financial advice. Speak to a regulated adviser about your own circumstances.