Life insurance for expats: the cover most people overlook
30th January 2026
There is an odd pattern you see repeatedly in international markets. In the UK, life insurance is a relatively normal part of adult financial housekeeping, particularly once someone has a mortgage or children. Internationally, even among high earners, it is far less commonly discussed, and even less commonly put in place. Yet the underlying need does not disappear just because you moved country. In many cases, it gets stronger.
Part of this is cultural, part is structural. The UK has a long-established advice and protection market, employers often provide group cover, and many people first encounter life cover through a mortgage requirement. In expat hubs, financial services can be more fragmented, and people often assume they are “sorted” because they have assets, investments, or employer benefits. The reality is that life insurance is not an investment product, and it is not a “nice to have”. It is a risk transfer tool. If you have financial dependants, debts, or any plan that relies on your future earnings, it is one of the cleanest ways to protect the people you care about.
Part of this is cultural, part is structural. The UK has a long-established advice and protection market, employers often provide group cover, and many people first encounter life cover through a mortgage requirement. In expat hubs, financial services can be more fragmented, and people often assume they are “sorted” because they have assets, investments, or employer benefits. The reality is that life insurance is not an investment product, and it is not a “nice to have”. It is a risk transfer tool. If you have financial dependants, debts, or any plan that relies on your future earnings, it is one of the cleanest ways to protect the people you care about.
Why the UK feels different
Even in the UK, protection is widely under-owned, but the market infrastructure and consumer awareness are stronger than in many expat destinations. FCA-commissioned research found 65% of UK adults had no protection insurance at all (protection here includes products such as life cover, critical illness, and income protection).
On the market size side, the UK is consistently cited as a country with a large life sector relative to GDP in cross-country insurance datasets. The OECD’s latest market trends report notes that countries with large life insurance penetration rates include the United Kingdom (among others).
That combination matters. Where a country has higher life market “penetration” (premiums as a share of GDP), you tend to see more product availability, stronger distribution, and more public familiarity. In many expat markets, insurance penetration is lower and the focus is often on short-term protection (medical cover) rather than long-term family security.
Why expats are often more exposed than they realise
Expats can accidentally build a life that is financially robust on paper, but fragile in practice.
First, cross-border complexity. Your income may be in one currency, your dependants’ costs in another, and your assets spread across jurisdictions. If you died tomorrow, your family could face delays and friction accessing funds, even if the money is technically “there”. A well-structured life policy is designed to pay a defined lump sum quickly to named beneficiaries.
Second, the hidden “dependency” problem. Many expats do not think of themselves as having dependants because their children are in the UK, or because a partner is capable and employed. But a death benefit is often what prevents a surviving spouse having to make forced decisions: selling investments at a bad time, liquidating property, moving children’s schools, or returning home earlier than planned.
Third, employer cover can be a mirage. Group life is useful, but it is rarely tailored to your real liabilities, it can disappear if you change employer, and it may not follow you across countries or contracts. Even regulators note “pure protection” is a mature market with large numbers of policies in force, but the key point for consumers is not the existence of the market. It is whether the cover is sufficient, portable, and structured correctly for their circumstances.
Even in the UK, protection is widely under-owned, but the market infrastructure and consumer awareness are stronger than in many expat destinations. FCA-commissioned research found 65% of UK adults had no protection insurance at all (protection here includes products such as life cover, critical illness, and income protection).
On the market size side, the UK is consistently cited as a country with a large life sector relative to GDP in cross-country insurance datasets. The OECD’s latest market trends report notes that countries with large life insurance penetration rates include the United Kingdom (among others).
That combination matters. Where a country has higher life market “penetration” (premiums as a share of GDP), you tend to see more product availability, stronger distribution, and more public familiarity. In many expat markets, insurance penetration is lower and the focus is often on short-term protection (medical cover) rather than long-term family security.
Why expats are often more exposed than they realise
Expats can accidentally build a life that is financially robust on paper, but fragile in practice.
First, cross-border complexity. Your income may be in one currency, your dependants’ costs in another, and your assets spread across jurisdictions. If you died tomorrow, your family could face delays and friction accessing funds, even if the money is technically “there”. A well-structured life policy is designed to pay a defined lump sum quickly to named beneficiaries.
Second, the hidden “dependency” problem. Many expats do not think of themselves as having dependants because their children are in the UK, or because a partner is capable and employed. But a death benefit is often what prevents a surviving spouse having to make forced decisions: selling investments at a bad time, liquidating property, moving children’s schools, or returning home earlier than planned.
Third, employer cover can be a mirage. Group life is useful, but it is rarely tailored to your real liabilities, it can disappear if you change employer, and it may not follow you across countries or contracts. Even regulators note “pure protection” is a mature market with large numbers of policies in force, but the key point for consumers is not the existence of the market. It is whether the cover is sufficient, portable, and structured correctly for their circumstances.
What life insurance is actually doing in a plan
Life insurance is a simple concept, but it becomes powerful when you are precise about what it is protecting.
At its core, it replaces economic value. If you earn, you are an asset. If your family relies on that asset, you need a plan for what happens if it disappears.
In practical planning terms, life cover commonly protects some combination of:
For expats, the “liquidity” point is often the most overlooked. Having investments is not the same as having accessible cash at exactly the time your family needs it. A life policy is designed to be that liquidity.
Types of cover expats actually use
Most life insurance planning for expats falls into a few straightforward structures.
Term insurance. Cover for a fixed period. This is usually the most cost-effective way to buy a large sum assured for the years your liabilities and dependency risks are highest. Many insurers position term cover as the default for income replacement and family protection.
Whole of life. Cover designed to last for life, typically used where the objective is certainty (for example, legacy planning, estate liquidity, or leaving a defined amount to family). It is generally more expensive than term, so it needs a clear purpose.
Family income benefit. Instead of paying a lump sum, it can pay an income for the remaining term if you die during the term. This can map neatly onto household budgeting, especially where a spouse would struggle to manage a large lump sum under stress.
The right answer is rarely “one product”. It is normally a structure: a base level of long-term cover plus a larger, cheaper term layer for the heavy-liability years.
Common mistakes we see with expat life insurance
The most frequent issues are not exotic. They are basic, and costly.
People insure the mortgage but not the life that pays for everything else. Mortgage cover is neat, but it does not replace income or fund the rest of the plan.
People rely entirely on employer cover. Useful, but not a personal plan.
People set a number with no framework. Life cover should be calculated from liabilities, income needs, and time horizons, not guesswork.
People do not align beneficiaries and jurisdiction. A policy is only as good as its ability to pay the right people, quickly, in the real world.
People treat life insurance as optional because “we have investments”. Investments are for goals. Insurance is for risks. Those are different jobs.
Life insurance is a simple concept, but it becomes powerful when you are precise about what it is protecting.
At its core, it replaces economic value. If you earn, you are an asset. If your family relies on that asset, you need a plan for what happens if it disappears.
In practical planning terms, life cover commonly protects some combination of:
- Replacing income for a defined period (for example, until children finish education).
- Repaying debts (UK mortgages, personal loans, business guarantees).
- Funding education (school fees or university plans that otherwise die with you).
- Creating liquidity (so your family does not need to sell assets quickly).
- Stabilising the household (so grief is not combined with immediate financial panic).
For expats, the “liquidity” point is often the most overlooked. Having investments is not the same as having accessible cash at exactly the time your family needs it. A life policy is designed to be that liquidity.
Types of cover expats actually use
Most life insurance planning for expats falls into a few straightforward structures.
Term insurance. Cover for a fixed period. This is usually the most cost-effective way to buy a large sum assured for the years your liabilities and dependency risks are highest. Many insurers position term cover as the default for income replacement and family protection.
Whole of life. Cover designed to last for life, typically used where the objective is certainty (for example, legacy planning, estate liquidity, or leaving a defined amount to family). It is generally more expensive than term, so it needs a clear purpose.
Family income benefit. Instead of paying a lump sum, it can pay an income for the remaining term if you die during the term. This can map neatly onto household budgeting, especially where a spouse would struggle to manage a large lump sum under stress.
The right answer is rarely “one product”. It is normally a structure: a base level of long-term cover plus a larger, cheaper term layer for the heavy-liability years.
Common mistakes we see with expat life insurance
The most frequent issues are not exotic. They are basic, and costly.
People insure the mortgage but not the life that pays for everything else. Mortgage cover is neat, but it does not replace income or fund the rest of the plan.
People rely entirely on employer cover. Useful, but not a personal plan.
People set a number with no framework. Life cover should be calculated from liabilities, income needs, and time horizons, not guesswork.
People do not align beneficiaries and jurisdiction. A policy is only as good as its ability to pay the right people, quickly, in the real world.
People treat life insurance as optional because “we have investments”. Investments are for goals. Insurance is for risks. Those are different jobs.
Why this matters even if your family is “back home”
If your spouse and children are in the UK while you work abroad, the need for life cover is often more obvious, not less.
A death abroad can create immediate costs: travel, legal admin, and a sudden loss of income while everything is being processed. It can also create longer-term knock-on effects: a surviving spouse may need to reduce work hours, change housing, or fund childcare differently. The purpose of life insurance is to buy time and stability. It keeps choices open.
The irony is that many expats spend months researching investments to improve returns by a small margin, while leaving a single concentrated risk unaddressed, the risk that the plan relies on them being alive.
Next steps
If you are an expat and anyone depends on your income, or you have debts, or you have a financial plan that would unravel if you died, life insurance should be reviewed properly, not assumed.
At Brigantia, we build this into financial planning the same way we treat any other core component: quantify the risk, structure the solution, and make sure it works across borders in the real world.
If you want us to review your current arrangements, or you suspect you have gaps, book an initial consultation and we will map what you have against what your family would actually need if the worst happened.
If your spouse and children are in the UK while you work abroad, the need for life cover is often more obvious, not less.
A death abroad can create immediate costs: travel, legal admin, and a sudden loss of income while everything is being processed. It can also create longer-term knock-on effects: a surviving spouse may need to reduce work hours, change housing, or fund childcare differently. The purpose of life insurance is to buy time and stability. It keeps choices open.
The irony is that many expats spend months researching investments to improve returns by a small margin, while leaving a single concentrated risk unaddressed, the risk that the plan relies on them being alive.
Next steps
If you are an expat and anyone depends on your income, or you have debts, or you have a financial plan that would unravel if you died, life insurance should be reviewed properly, not assumed.
At Brigantia, we build this into financial planning the same way we treat any other core component: quantify the risk, structure the solution, and make sure it works across borders in the real world.
If you want us to review your current arrangements, or you suspect you have gaps, book an initial consultation and we will map what you have against what your family would actually need if the worst happened.
