Moving abroad can quietly change how your existing life, TPD and income protection policies work. Here's what to check.
Many Australians take out life insurance, total and permanent disability (TPD) cover, trauma cover or income protection while living in Australia — and then move overseas without giving their policies a second thought. The trouble is, some policies include terms that change, restrict or even cancel cover when the policyholder becomes a non-resident or spends extended periods overseas. A quick review before (or soon after) you move can avoid an unpleasant surprise later.
Insurance policies — particularly those held inside superannuation — are often written with assumptions about the policyholder living in Australia. Depending on the insurer and product, moving overseas can trigger:
Life and TPD cover often continues for Australians living overseas, but the terms can vary — particularly around TPD definitions, which may be assessed differently (or not at all) for people no longer working in Australia. It's worth checking your policy document or asking your adviser to confirm how your cover responds if you become permanently disabled while overseas.
Income protection is one of the more complex areas, because benefits are usually calculated based on your pre-claim income — and insurers may have different rules for assessing overseas income, or may limit or exclude cover altogether for people working outside Australia. If income protection is an important part of your cover, this is worth checking carefully before you rely on it overseas.
If your insurance is held inside your super fund, remember that the cover is also linked to your super account remaining active. As covered in our Guide to Superannuation for Australian Expats, an account that stops receiving contributions for 16 months can have its insurance automatically cancelled under the Putting Members Interests First rules — something that can easily happen if you move overseas and stop contributing.
If you're planning a move overseas, it's worth having your existing cover reviewed beforehand — including checking policy wording for residency-related exclusions, confirming whether premiums can still be paid from overseas, and considering whether any gaps need to be filled with additional cover (in Australia or in your new country of residence). If you've already moved and haven't reviewed your cover, it's not too late — but the sooner the better.
Not automatically in most cases, but the terms of cover — including exclusions and how claims are assessed — can change. It's worth confirming the details with your insurer or adviser rather than assuming.
It can be, in two ways: the policy terms themselves may limit cover for non-residents, and the underlying super account could lose its insurance entirely if it becomes inactive. Both are worth checking.
It depends on the insurer and your country of residence — some Australian insurers will cover expats, others have restrictions. We can help identify options based on where you're based.
Insurance Advice · Expat & Repatriation Advice · Back to Resources
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