International Life Assurance
International Term Life Assurance — Clear, Cost-Effective, Global
Term assurance is the most cost-effective form of life cover — a defined sum paid to your beneficiaries if you die within the policy term. For expats, the critical difference is portability: an international term policy remains in force regardless of where you live, pays out in your chosen currency, and is handled by an offshore insurer with no reliance on UK residency, UK bank accounts, or UK legal structures.
How it works
International term assurance — the essentials
What it is and how it works
You choose a sum assured (the amount your beneficiaries receive) and a policy term (the number of years the cover runs — typically 10, 15, 20 or 25 years). If you die within the term, the insurer pays the sum assured to your nominated beneficiaries. If you survive the term, the policy expires with no payout and no residual value — this is what keeps the cost low.
Level cover means the sum assured stays the same throughout. A £500,000 policy issued today is still a £500,000 policy in year 20. Decreasing covermeans the sum assured reduces each year — typically tracking the outstanding balance of a repayment mortgage. The premium is lower than level term, but the benefit reduces over time.
Family income benefit is a variant that pays a monthly income rather than a lump sum — useful where the priority is replacing regular income rather than settling a large debt.
Key features of international term policies
- ✓Portability: Cover remains valid as you move between countries — no need to notify the insurer of every address change.
- ✓Multi-currency payouts: Death benefit can be paid in GBP, USD, EUR, or other major currencies to any bank account worldwide.
- ✓No residency restriction: International policies are underwritten for globally mobile individuals — not restricted to UK residents.
- ✓Claims paid anywhere: Beneficiaries can make and receive a claim from any country. No requirement to be in the UK.
- ✓Trust eligible: Can be placed in an offshore trust to keep the benefit outside your taxable estate and avoid probate delay.
- ✓Guaranteed premiums: Most international term policies have guaranteed premiums — the rate agreed at outset holds for the full term.
Types of cover
Three types of international term assurance
Level Term
The sum assured remains fixed throughout the policy term. Whether you die in year one or year twenty-five, your beneficiaries receive the same amount. Best for income replacement, education funding, and general family protection where you want certainty about what will be paid out.
Premiums: fixed throughout. Payout: fixed lump sum. Best for: income replacement, family protection.
Decreasing Term
The sum assured reduces each year in line with an outstanding repayment mortgage balance. The premium is lower than level term because the insurer's maximum exposure reduces over time. If you die, the benefit clears the remaining mortgage — no more, no less.
Premiums: fixed, lower than level. Payout: reduces annually. Best for: repayment mortgage protection.
Family Income Benefit
Rather than a lump sum, this pays a tax-free monthly income from the date of claim to the end of the policy term. Particularly effective when the purpose of the cover is to replace regular income — school fees, living costs — rather than to settle a specific debt or liability.
Premiums: fixed, typically lowest of the three. Payout: monthly income. Best for: replacing regular income.
Use cases
When term assurance is the right choice
Term assurance is not always the right product — but for most expat clients with a specific financial liability or dependency to cover, it is the most appropriate and most cost-effective solution.
Mortgage protection
If you have an international buy-to-let or residential mortgage, term assurance ensures the loan is cleared if you die — protecting your family's equity and removing the bank's claim on the property.
Income replacement
Your income stops when you die. Level term cover replaces the income your family would have had — funding living costs, education, and lifestyle for the years of the policy term.
Education funding
International school fees and university costs are significant commitments. A policy term aligned to your youngest child's expected graduation ensures the funds are there even if you are not.
Business loan protection
Directors and partners who have personally guaranteed business debt need cover to ensure that debt does not fall on their family. Decreasing term can track the loan balance directly.
Short-term maximum cover
If budget is the primary constraint, term assurance gives the highest amount of cover per pound of premium — making it the logical choice where maximum protection for a defined period is the goal.
Covering a specific liability
A future school fees bill, an estate duty liability on death, or a known contractual commitment — a policy term and sum structured precisely around that liability, at a fixed known premium.
Providers
International term assurance providers we work with
We are not tied to any provider. We compare across the whole market and recommend the policy that best suits your circumstances — age, health, country of residence, cover required, and budget.
RL360
Isle of Man
Market leader in offshore life. IOMA regulated, strong underwriting flexibility.
Friends Provident International
Isle of Man
Long track record with expat clients, broad product range.
Zurich International
Isle of Man / Dubai
Global reach, strong financial strength ratings.
Utmost International
Isle of Man
The former Old Mutual / Quilter International business, now part of Utmost. Established offshore provider, competitive rates.
FAQ
Term assurance — frequently asked questions
What is the difference between level and decreasing term assurance?
Level term pays the same sum assured throughout the policy term — the benefit does not change whether you die in year one or year twenty-five. Decreasing term reduces the sum assured each year, designed to track a repayment mortgage balance as it reduces. Level term costs slightly more but is more flexible; decreasing term is a lower-cost option specifically for mortgage protection.
How much life cover do I actually need as an expat?
The standard starting point is 10–15 times gross annual income, then adjusted upwards for outstanding debt (including mortgages in multiple countries), anticipated education costs for dependent children, and any business liabilities. Expats often need higher cover than UK residents because they lack state death-in-service benefits and may have financial commitments in more than one country. A needs analysis with an adviser will give you a specific figure.
Will my existing UK life policy remain valid if I live abroad?
This depends on the specific policy and insurer. Some UK policies include a "change of residency" clause that voids or materially alters the cover if you fail to notify the insurer. Group death-in-service schemes tied to a UK employer cease when you leave. Even where a UK policy remains technically in force, claims processes may require UK bank accounts and UK documentation, complicating a payout to beneficiaries living abroad. An international term policy is designed specifically to avoid these issues.
What does the underwriting process involve?
International term assurance is underwritten — the insurer assesses your health history, occupation, residence, and lifestyle before issuing a policy. For smaller sums assured (typically under $500,000), underwriting may be non-medical (questionnaire only). For larger amounts, a medical examination and blood tests are standard. Underwriting also considers your country of residence and travel patterns. We brief clients on the underwriting process before application and advise how to present any pre-existing conditions accurately.
Can I write an international term policy in trust?
Yes. Most offshore term policies can be written in an appropriate trust structure, which keeps the death benefit outside your estate for IHT purposes and allows the payout to be directed to specific beneficiaries quickly — typically without the need for probate. The trust arrangements for an offshore policy will differ from a UK discretionary trust. We work with specialist international trust lawyers on this aspect of planning.
Get a term assurance quote
Tell us your coverage requirement, policy term, and current country of residence. We will compare rates across the major offshore providers and come back to you with specific options — at no charge and with no obligation.
Get a term life assurance quote — at no charge
Tell us your coverage requirement, preferred term, and current country of residence. We compare rates across the major offshore providers and come back with specific options, no obligation.
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