Expat Financial Protection

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Moving overseas does not remove your financial commitments in the UK. For many British expatriates, those commitments can include a UK mortgage, investment properties, rental income and financial responsibilities towards family members.

It is therefore worth considering what would happen financially if you were unable to work, became seriously ill, or died unexpectedly.

The right protection will depend on your personal circumstances, income, family commitments, mortgage and other assets. There is no one-size-fits-all solution, but appropriate insurance can provide valuable financial support when it is needed most.

Life insurance can provide a lump sum to your family or other beneficiaries if you die during the period covered by the policy.

For an expat with a UK mortgage, this could help ensure that loved ones are not left with an unaffordable financial commitment. It can also be considered where there are dependent children, other financial responsibilities or potential inheritance tax liabilities.

The amount and type of cover required will depend on your circumstances, including your mortgage, assets, income and family situation.

Critical illness insurance can provide a tax-free lump sum if you are diagnosed with a qualifying serious illness covered by the policy.

The payment can provide financial breathing space at a particularly difficult time. Depending on the policy, the money could potentially be used towards mortgage payments, household expenses, medical costs or other financial commitments while you recover.

Policies differ considerably in the illnesses covered, definitions, exclusions and levels of protection, so it is important to understand exactly what a policy provides before taking it out.

For many professionals living overseas, their income is one of their most important financial assets.

Income protection is designed to provide an income if illness or injury prevents you from working. Depending on the policy, cover may provide a monthly benefit for a limited period or potentially continue for a longer period, subject to the terms of the policy.

This can be particularly relevant to professionals, business owners and others whose lifestyle and financial commitments depend heavily on their ability to earn.

The amount of cover available will depend on factors such as your income, occupation and the policy terms. Workplace sick pay or other existing benefits should also be taken into account when considering how much protection may be appropriate. 

British expats may also wish to consider health insurance, particularly where they live in a country with a private healthcare system or where access to private treatment is important to them.

Health insurance can help cover the cost of private medical treatment for eligible conditions and may provide access to private healthcare specialists.

The appropriate cover will depend on your country of residence, personal circumstances, existing healthcare arrangements and the level of cover required. 

If you own a UK property that is rented out while you live overseas, appropriate landlord insurance can be an important part of protecting your investment.

Depending on the policy, landlord cover can include areas such as buildings, contents, property owners' liability and legal protection. Different types of rental property may require different levels of cover, including standard residential lets, holiday lets, HMOs and student accommodation. 

This can sit alongside your UK buy-to-let mortgage and should be considered as part of the wider financial protection of your property.

If you retain a UK home while living overseas, suitable buildings and contents insurance can help protect the property and possessions against insured risks.

Specialist cover may also be available for circumstances such as listed buildings, thatched properties, high-value homes and properties undergoing refurbishment. 

The correct cover will depend on the property, how it is occupied and the risks that need to be insured.

For expats who own or run a busin

ess, personal protection may only be one part of the picture.

Business protection can be used to help address risks such as the death or loss of a key individual, business borrowing and the death of a business partner. Potential solutions can include key-person protection, shareholder protection and business loan protection. 

This can be particularly relevant where the financial position of a business is closely connected to the income or involvement of its owners or key employees.

Some British expats have significant assets that require specialist insurance rather than standard household cover.

Depending on your circumstances, specialist insurance can include cover for prestige and performance vehicles, fine art, jewellery, antiques, collections, holiday homes and second homes, yachts, boats and private aircraft. Specialist solutions can also be available for clients living in the UK or overseas. 

For British expats, financial protection can be particularly important because living overseas can make an individual's financial arrangements more complicated.

Your UK mortgage, property portfolio, overseas income, family circumstances and existing employee benefits all need to be considered together. Insurance should therefore be viewed as part of your wider financial planning rather than simply something to arrange when taking out a mortgage.

Kathryn can discuss your circumstances as part of your mortgage planning and, where appropriate, introduce you to a specialist protection adviser who can assess your insurance requirements and provide advice on suitable options.