Life Insurance (UK Policy)

[SEWI 50]

Now that I have my flight to the US booked (28th December- yay!), I would like to organise a few final considerations.

 

Primarily, I would like to take out a UK based life insurance policy, and so I would be very grateful for any insights into this process or peoples experiences with regards to expatriate life insurance.

A few quick facts: 

- I am 25-30years of age,

- male,

- non-smoker,

- medical record includes sporting related injuries, but I'm fit and healthy.

 

I will be joining a large financial services company in the US, and from memory they offer a comprehensive life/medical insurance policy (will be confirmed, when I receive the final paperwork, etc.), however, I would like to take out a UK based policy, whereby my parents(UK) would be the sole beneficiaries. Which I expect would simplify the process for them, should something happen to me before/during their retirement.

 

I intend to maintain at least one UK based bank account. 

 

This would be my first LI policy, and so, I would be grateful for any suggestions and feedback

Edited December 16, 2020 by SEWI
Wrong travel date- oops!

[Boiler 45,676]

You just want Term Insurance? No end of places you can buy online.

Edited December 16, 2020 by Boiler

[SEWI 50]

20 minutes ago, Boiler said:

You just want Term Insurance? No end of places you can buy online.

Yes, just a straightforward lump-sum payout over a 30-35 year period- to support my parents, should something happen. As I expect to have a more comprehensive coverage as part of my US employment contract.

 

I suppose I'm mostly curious/unsure of how the permanently moving overseas aspect impacts the policy? 

Since posting, I've made a few enquiries and callback requests with expat-life insurance (independent) advisors. 

 

I'd be very grateful for any thoughts, feedback or tips on the process, or experiences with life insurance when moving overseas.

 

[Boiler 45,676]

Well you not an Expat, well yet. https://www.moneysavingexpert.com/insurance/cheap-life-insurance/

 

 

 

[SEWI 50]

15 minutes ago, Boiler said:

Well you not an Expat, well yet. https://www.moneysavingexpert.com/insurance/cheap-life-insurance/

 

 

 

Ha, perhaps not yet, but after speaking with Legal&General, they'll only underwrite a policy providing I do not permanently leave the UK in the next 90 days- hence my (pre-)expat consideration. 

https://www.legalandgeneral.com/life-cover/articles-and-guides/life-insurance-guides/life-insurance-moving-abroad/

 

I suppose a follow-up question then, would be: do people abandon, or transfer(where possible) their policy to a US provider for life insurance, upon relocating? Or, simply rely on an employer offered policy?

[Boiler 45,676]

Taking out Life Assurance just before emigrating is I would imagine unusual, I would anticipate such a move would cause a review of such needs and that may result in cover being bought after arrival.

 

Employer cover is obviously limited to being an employee and whilst relatively cheap for an Employer to provide should be looked at as more bunce, easy come easy gone.

 

Obviously why the issue arises now is a personal matter but I would look for a company that does not have such a time limitation.

 

You can not transfer.

[Bug&Bug 147]

Why do you want it uk based? Might be much easier getting one in the US once you are a resident?

[Boiler 45,676]

Sounds like he supports his parents and wants them to have a lump sum should he pass and is looking to mitigate the exchange risk.

[SEWI 50]

Still waiting for a few callbacks, from some UK based internationally focused independent financial/life-insurance advisors, so I will post the offerings here once I receive them. 

But, yes, @Boiler is correct- eliminate exchange risk, international tax complications, and to (hopefully) simplify the ease of access for my parents, should the payout ever be required.

I will also explore alternative (additional) options state-side, preferably employer sponsored.

[Boiler 45,676]

Not sure how it would impact tax? Now that is something you would need competent advise about. I do not know how it is structured in the US.

 

Lose your job lose any job related Life Insurance so that has definite risks.