Each year thousands of British citizens move abroad. It would appear motivation to leave the country ranges from beginning a new career, retiring or simply in search of new adventures.
According to the United Nations, over 4.5 million Brits now live overseas. Amongst the most popular destinations in 2017, were Australia and New Zealand, where over 33% of British expats live and around 28% residing in the US or Canada.
However, the EU continues to be a popular destination for British expats, with around 1.3 million of those living abroad residing in other EU countries. More specifically, it would appear Spain, France and Germany are the top choices with 69% of Brits living in the EU residing in these three countries in 2017.
Furthermore, since the EU referendum in 2016, more than 100,000 Brits have emigrated and more continue to follow suite amidst the many unknowns surrounding recent Brexit negotiations. Those who have always dreamt of an idyllic life abroad are fleeing in what has been nicknamed “Brexodus”. This is most likely to avoid the proposed implications, taking a calculated risk in the hope of retaining from of the current EU migration benefits.
Life Insurance Coverage Limitations
Clearly moving overseas carries great appeal for many British nationals, yet its also accompanied by various other practical considerations and implications, regardless of the added Brexit issues.
Specifically, often life insurance coverage can be impacted. However, this is heavily dependent on the terms and conditions outlined in your chosen life insurance policy and its worth investigating what factors might invalidate your life insurance should you chose to emigrate. For example, if your relocation is short-term and less than six months, its unlikely to affect your life insurance policy coverage.
Typically, policyholders can expect varying factors to affect their life insurance cover, such as the residing country and the reason for the move.
Moreover, there are of course those individuals who emigrate initially for shorter periods. When circumstances change, they may require their stay to be extended or perhaps it turns into a permanent move. These types of situations are those most likely to invalidate the majority of UK life insurance policies or indeed be accompanied by some caveat, such as an active UK bank account and address.
Many Brits will have planned or at least considered moving abroad for some time. Therefore, it’s important to explore such ideas, hopes and dreams when considering your life insurance options. A lack of certainty around policy terms can leave policyholders feeling vulnerable, so it is best addressed at the outset. This is why at Expatriate Healthcare we feel it is vitally important for potential customers to have a comprehensive understanding of what is and isn’t covered, prior to purchasing their life insurance policy.
Prospective expats face an overwhelming number of unknowns when mapping out the details involved in their move abroad. For those moving for employment contracts, there are often a high volume of factors which are unknown and outside of their control. For example, usually the employer dictates the where, the when and the how long. Each of these can have a significant impact on the relevance of their life insurance cover. How can this be mitigated? How can expats make such important decisions with only limited knowledge at their disposal?
As a general rule, unlike short-term insurances, long-term policies are rarely updated with changes to circumstances. The initial situations are presented, the risks are considered and the policy is quoted based on this.
Now, let’s be honest, one thing we can be certain of in life is that it is unpredictable. Isn’t that one of the main reason individuals would consider life insurance in the first place?! So, where does the responsibility unlimitedly lay? What needs to happen to future-proof life insurance policies with these unknown elements?
Ideally, before making any commitment to your life insurance cover, spend some time exploring your future plans and goals. If you were offered your dream job in another country, would you be hesitant or instantly accept the opportunity? When you think about your retirement, do you see yourself potentially somewhere other than the UK?
However, this is not solely within your control as the country of residence plays a major part in the risk assessment. Underwriters are understandably cautious of high-risk countries and countries where international rules can impact the ability to undertake risk and administration of a policy effectively.
Furthermore, a certain level of obligation must surely belong to brokers. By providing insight, clarity and facilitating the process of uncovering a potential customer’s future plans and retirement intentions, the recommended policy will be more suitably placed.
Portable Life Insurance Policies
In the current climate, we’re experiencing rapid change, accompanied by uncertain and challenging economic times. Such periods surely require a more adaptive and flexible approach to address changing circumstances. Restriction and rigidity no longer fit the norm.
2017 statistics from the United Nations estimated 258 million people live in a country to the one they were born. Meaning 3.4% of the world’s population are international migrants. This is also a staggering increase of 49% since the year 2000.
In response to the environmental demands, more and more people are finding themselves drawn to living a more flexible and transient way of life, requiring a stronger need to be able to make last minute choices and changes. Hence, it’s important for individuals and businesses alike to be able to thrive in such challenging times by having the freedom to adapt.
Expatriate Healthcare feel strongly about the insurance industry providing life insurance policies which truly meet the needs of expats. As a result, since 2015, Expatriate Healthcare has offered portable life insurance policy which remain in force if they move countries, thus providing the policyholder with peace of mind and enhanced flexibility. At present, the policy is available to individuals residing in 88 different countries.
Quotes for this type of overseas life insurance can be applied for online, with premiums accepted in sterling, euros and US dollars.