International Life Insurance

What is International Life Insurance?

International term life insurance is a life insurance policy designed to provide financial protection across borders. It pays a lump-sum death benefit to your nominated beneficiaries, regardless of where you live, work, or pass away (subject to standard exclusions).

From a functional point of view, it works like any life insurance policy —

• You pay premiums (monthly or annually)
• The insurer guarantees a payout on death=
• Optional riders enhance coverage

What makes it different is who it is designed for.

A domestic life policy may still be valid when you move abroad, but many are not designed to support international claims, payouts, or long-term overseas residence.

Why Expats in the UAE Need International Life Insurance Policies?

Many UAE residents already have some form of life cover, either from their employer or purchased back home. However, these policies often come with hidden limitations once you live abroad.

The Real Risk

• Some home-country policies restrict coverage if you live overseas long-term
• Claims may only be paid into local bank accounts
• Currency mismatch can reduce the real value of payouts
• Re-buying life insurance later may be expensive or impossible due to age or health

An international life insurance policy solves these issues by offering portable, global coverage.

Key Benefits of International Life Insurance Policies

1. Worldwide Coverage

International life insurance policies are structured to pay claims even if death occurs outside the UAE, outside your home country, or while travelling or working abroad. For expats, this eliminates the risk of coverage gaps caused by relocation.

2. True Portability Across Countries

Portability is one of the biggest reasons expats choose international life insurance. Once issued, the policy remains active even if you move countries multiple times. It does not require re-underwriting with every relocation and continues on the same terms as long as premiums are paid.

This is particularly valuable for professionals who expect their UAE assignment to be temporary or uncertain.

3. Multi-Currency Premiums and Payouts

International life insurance policies usually allow you to:

• Pay premiums in USD, GBP, or EUR
• Receive claim payouts in the same chosen currency

This helps expats manage currency volatility, cross-border financial obligations, and long-term planning for dependents living abroad.

For example, if your children’s education expenses are in GBP, selecting a GBP-denominated policy avoids exchange-rate risk later.

4. Flexible Coverage Structures

International insurers typically offer —

• International term life insurance
• Whole life insurance
• Renewable annual life plans

Coverage amounts are often higher than what local UAE policies allow, making them suitable for income replacement and estate planning.

5. Global Claims Support

International insurers handle foreign death certificates, cross-border documentation, and international bank payouts.

Types of International Life Insurance for Expats

International Term Life Insurance

International term life insurance is the most popular choice among UAE expats. It provides coverage for a fixed period, commonly 10, 20, or 30 years. If the policyholder passes away during the term, beneficiaries receive the full death benefit.

If the term ends and the policyholder is alive, the policy simply expires with no payout.

Why term life works well for expats:

• Lower premiums compared to permanent plans
• High coverage at an affordable cost
• Ideal for income replacement during working years

Example: A 34-year-old UAE resident earning AED 40,000 per month purchases a USD 1 million international term life insurance policy for 20 years. This ensures that if something happens, their family can —

• Maintain living expenses
• Pay off liabilities back home
• Fund children’s education

Whole Life International Insurance

Whole life insurance provides lifetime coverage, meaning the death benefit is guaranteed as long as premiums are paid.

Expats usually choose this option when —

• Planning permanent relocation abroad
• Concerned about future health affecting insurability
• Looking at inheritance or wealth transfer planning

Whole life policies are more expensive but offer certainty and long-term stability.

How Much International Life Insurance Cover Do You Need?

There is no universal number, but coverage should be based on real financial responsibilities, not guesswork.

Immediate financial needs

These are costs your family will face immediately:

• Funeral and repatriation expenses
• Outstanding loans or credit cards
• Medical bills
• Legal and estate settlement costs

Ongoing expenses

These reflect day-to-day life —

• Rent or mortgage EMIs
• School and university fees
• Household expenses
• Healthcare and insurance premiums

Future financial goals

These protect long-term stability —

• Higher education costs
• Spouse’s retirement
• Long-term family support

Use the simple rule of thumb 

Coverage = 10–20x your annual income, adjusted for —

• Existing savings
• Employer life cover
• Spouse’s income

How Are International Life Insurance Premiums Calculated?

Premiums are based on risk assessment, similar to domestic insurance, but with international considerations.

Key pricing factors

• Age
• Health and medical history
• Smoking status
• Country of residence
• Coverage amount and term
• Riders added (critical illness, accident, disability)

Real-case examples:

• 30-year-old non-smoker, AED 250,000 cover: ~AED 17–40/month
• 35-year-old parent, AED 1 million cover: ~AED 70–80/month

These costs are often lower than people expect, especially when purchased early.

What Does International Term Life Insurance Cover?

International term life insurance is designed to protect your family even when your life and work move across borders. The coverage is broad, but understanding when benefits apply and what is excluded is essential.

Covered From Day One

Once your policy is active, these situations are typically covered from day one:

• Death due to illness: This includes natural causes such as heart attack, stroke, or critical illnesses like cancer. For most expats, this forms the core reason for buying life insurance. It is to secure income replacement and financial stability for their family.
• Accidental death: If death occurs due to an accident, whether at home, at work, or while travelling, the policy pays the full sum assured.
• Death while living or working abroad: Unlike many domestic policies, international term life insurance remains valid even if death occurs outside the UAE or your home country. 

Coverage After a Waiting Period

Suicide
Most international life insurance policies include a standard waiting period (usually 12 months). If death occurs due to suicide within this period, the claim is not paid. After the waiting period, coverage typically applies as per policy terms.

This clause is standard across global insurers and not unique to international policies.

Common Exclusions You Should Be Aware Of

Understanding exclusions helps avoid claim rejection later —

• Undisclosed pre-existing medical conditions: If health conditions are not disclosed at the time of application, insurers may deny claims. Full medical transparency is critical.
• Illegal activities: Deaths linked to unlawful actions are usually excluded from coverage.
• Drug or alcohol abuse: Claims may be rejected if death occurs due to substance misuse beyond prescribed limits.
• War zones or sanctioned countries: Most insurers exclude deaths occurring in active war zones or internationally sanctioned regions.

👉 PBInsurance experts strongly advise UAE residents to review territorial exclusions carefully, especially if your job or travel plans involve multiple countries.

Optional Riders That Matter for Expats

Riders allow you to customise your international term life insurance based on real-life risks faced by expats.

Why are riders important? Living abroad often means higher medical costs, repatriation expenses, and income dependency risks. Riders help close these gaps.

• Accidental Death Benefit: Provides an additional payout if death occurs due to an accident, useful for families needing immediate extra support.
• Permanent Disability Cover: Pays a lump sum if you become permanently disabled and unable to work, helping cover long-term living expenses.
• Critical Illness Rider: Offers early payout on diagnosis of serious conditions like cancer, heart disease, or stroke, before death occurs.
• Funeral & Repatriation Cover: Ensures quick cash release to manage funeral costs or repatriation of remains, which can be expensive for expat families.
• Waiver of Premium: If you become disabled, future premiums are waived while the policy continues, preventing coverage lapse during financial stress.

These riders are particularly valuable for international life insurance for expats, where logistical and financial challenges are higher abroad.

Limitations of International Life Insurance

International term life insurance is highly effective for expats, but it is not without constraints. Understanding these limitations upfront helps you choose the right policy with realistic expectations.

1. Higher Premiums

• Typically, more expensive than local life insurance
• Priced higher due to global coverage and cross-border risk
• Should be weighed against existing employer or home-country cover

2. Limited Government Protection

• Most international insurers are based in offshore jurisdictions
• Government-backed guarantee schemes are usually limited or unavailable
• Financial strength and insurer ratings become especially important

3. Eligibility Restrictions

• Some nationalities (e.g. US citizens) may face limitations
• Applicants in sanctioned or high-risk countries may be excluded
• High-risk occupations can lead to higher premiums or denial

4. Territorial Exclusions

• Coverage may not apply in war zones or conflict regions
• Political instability or sanctions can trigger exclusions
• Important for expats with frequent relocations or travel

5. Currency-Related Risks

• Exchange-rate fluctuations can affect premium affordability
• Payout value may change if beneficiaries use a different currency
• Conversion fees can reduce the final claim amount
• Cash-value policies may be impacted by currency movements

Professional advice can help ensure your international life insurance policy structure remains appropriate throughout your expatriate journey.

International Life Insurance for Employers & Groups

International life insurance is not only for individuals. Many UAE-based companies use international group life insurance to support globally mobile teams.

• Consistent benefits across locations: Employees receive the same life cover regardless of where they are posted.
• Protection for remote and overseas staff: Ideal for hybrid teams, regional roles, and cross-border assignments.
• Flexible policy structures: Coverage limits and benefits can be tailored based on role or seniority.
• Stronger global benefits package: Enhances talent attraction and retention, especially for senior leadership and international roles.

For companies with multinational exposure, international group life insurance simplifies benefit management while meeting global standards.

International vs Domestic Life Insurance: What’s the Difference?

Choosing between domestic and international life insurance can significantly impact claim outcomes.

International life insurance for expats is not an upgrade; it’s a different product altogether.

Who Should Buy International Life Insurance in the UAE?

International term life insurance is especially suitable if you —

• Are an expat living in the UAE
• Expect to relocate to another country in the future
• Have dependents living outside the UAE
• Earn income in one currency and spend in another
• Want uninterrupted long-term life cover

For such profiles, international life insurance policies are often safer and more reliable than relying solely on local UAE or home-country plans.

How to Choose the Best Expat Life Insurance in UAE?

Before buying an international life insurance policy, you should focus on quality —

• Insurer’s financial strength: Choose insurers with strong global credit ratings to ensure long-term claim reliability.
• Policy portability: Confirm that coverage continues seamlessly if you move countries.
• Territorial exclusions: Check where coverage applies and where it doesn’t—this is critical for frequent travellers.
• Currency options: Select a currency aligned with your family’s future expenses.
• Claims handling experience: A smooth international claims process matters more than a slightly cheaper premium.
• Availability of riders: Ensure the policy can adapt as your needs change.

💡 Price should never be the only deciding factor; a reliable claim experience is far more important.

Final Takeaway

For globally mobile UAE residents, international life insurance is not a luxury; it’s a necessity. Whether you choose international term life insurance for cost-effective protection or a permanent plan for long-term certainty, the right policy ensures your family is financially secure, no matter where life takes you. If your future spans more than one country, your life insurance should too.

FAQs for Best Expats Life Insurance in UAE