At AIG Life, for example, Roberts says there may be an additional territorial loading depending on where the applicant is living.
“If they were living in a country with a very similar mortality risk to the UK, then there probably wouldn't be any additional loading; the price they would get will be exactly the same as if they were living in the UK,” he says.
“But other countries that we’re able to consider may have an additional risk associated with them, and therefore we will apply an extra territorial loading.”
Cooper likewise highlights how an occupation in the UK may carry different risks to an occupation in another country, which may have different standards of workplace safety.
Differences between UK and international insurers
A main difference between applying for a policy from a UK provider versus an international one is that the latter will require a medical exam, even for relatively low sums assured, says Richard Brough, protection manager at The Insurance Surgery, a specialist life insurance broker.
Another difference is that international insurers outside of the UK and the EU may still consider an applicant’s gender when calculating price, says Knowles.
Since December 21 2012, insurance companies in the EU have had to charge the same price to men and women for the same insurance products, without distinction on the grounds of sex.
Some international insurers may also consider an applicant’s academic qualifications, which can affect the terms that are offered as a result of sociodemographic statistics, adds Knowles. “The higher the academic qualification, the better the terms will be.”
The claims experience
The claims process is another aspect in which protection for expats can differ.
If a claim is made to a UK-based insurer, any evidence in another language would need to be translated, and this can add between five and 10 working days to the processing time on a claim, says Brough.
A client should also be aware of how a policy may be taxed in their country of residence at the time of a claim and take local advice on this, says Morris.
“They will also need to be aware and take advice if there are trusts covering policies, as the trusts may be taxable in a different way in different countries,” he adds. “This is a particular issue if the clients are US taxpayers.”
And when it comes to a critical or terminal illness claim, Cooper at William Russell highlights how a UK insurer may not accept a diagnosis from a doctor who is outside of the UK, due to a risk of fraud.
At AIG Life, Roberts says that a doctor who is diagnosing the life assured would need to be in one of the provider’s 37 eligible countries.
