Getting covered while living abroad: Life insurance for Australian expats in 2025
As an Australian living overseas, you may have secured a new job, embraced a different culture, or simply chased new opportunities—but one thing you shouldn’t leave behind is financial security. Many expats assume that they won’t be able to take out a new cover while living abroad, but that’s not always the case. The good news? Getting covered as an Australian expatriate is possible, but it comes with specific eligibility criteria, limitations, and benefits that you need to understand.
Things you typically need to be considered:
Not all Australian expats are automatically eligible for life insurance while living abroad. Generally, insurers require that you:
✅ Hold Australian citizenship or permanent residency
✅ Have a residential contact address in Australia
✅ Maintain an Australian bank account
✅ Employed in a white-collar occupation (self-employed individuals are usually excluded)
✅ Legally reside and work in an approved country (more on this below)
✅ Intend to return to Australia within a set timeframe (varies by insurer)
These requirements ensure that insurers can verify your identity, residency, and financial ties to Australia before offering coverage. (ClearView, 2024).
Why getting expat insurance is challenging
Life insurance for expats comes with additional scrutiny due to regulatory, medical, and financial risks. Australian insurers evaluate factors such as:
Location risk – Some countries are considered high-risk due to political instability or healthcare standards (DFAT, 2024).
Employment type – White-collar professionals are generally preferred over high-risk occupations.
Medical history – If you require additional medical tests, these may be reimbursed by some insurers, or existing employer-mandated medicals can often be used.
Tax implications – Insurance structures for expats often differ, especially if superannuation is involved (ATO, 2024).
Varying healthcare systems – If you fall ill overseas, the cost and quality of medical care vary widely depending on where you live.
Local legal systems – Some countries have different insurance regulations that may impact how a claim is processed.
Higher likelihood of travel – Expats often travel between multiple countries, increasing exposure to different risks.
Because of these factors, not all insurers offer coverage to expats, and those that do may impose specific conditions, exclusions, or limitations.
What cover can expats get?
Even if you’re living abroad, there may be limits in levels of cover. See the guide below on some of the maximum limits.
✅ Cover can be put in place while overseas – You don’t always need to return to Australia to take out a policy.
✅ Up to $3 million in life/TPD cover – Depending on your occupation, age, and insurer.
✅ Up to $1 million in trauma cover – For critical illnesses like cancer, stroke, or heart attacks.
✅ Income protection benefits – While income replacement is often lower than standard policies, some providers offer up to $30,000 per month.
✅ Worldwide cover – Once your policy is in force, you are typically covered anywhere in the world.
Approved countries for expats
Not all countries are eligible for Australian life insurance coverage. Generally, insurers approve cover for expats living in:
Hong Kong
Singapore
United Arab Emirates
United States of America
Canada
United Kingdom
Ireland
South Korea
New Zealand (special rules apply)
Coverage eligibility is based on Department of Foreign Affairs and Trade (DFAT) travel advisories. Countries with a DFAT Level 1 or 2 rating are typically approved to ensure stability and lower risk. If a country is listed under DFAT Level 3 (‘Reconsider your need to travel’) or Level 4 (‘Do not travel’), insurers may decline coverage.
This list may grow over time, so if you’re unsure whether your current location qualifies, check with your financial adviser for the latest updates.
How insurers differ in their
expat cover
Each insurer has its own guidelines for covering expats. Here’s how some major insurers approach it:
AIA
Life, TPD, and Trauma cover available.
Expats must intend to return to Australia within 5 years.
To take out Income Protection, expats must intend to return to Australia within three years. Policies also require a minimum 30-day waiting period before benefits begin.
Medical tests can be conducted overseas but must be in English.
PPS Mutual
To cover expats who intend to return to Australia within five years for Life cover and within three years for TPD, Trauma, and Income Protection.
Expatriate clause applies, requiring proof of ties to Australia.
Insurance medical exams must be completed in English.
Premiums and claims must be handled through an Australian bank account.
TAL, Zurich, MetLife, and Neos/Encompass
TAL and MetLife cover New Zealand expats with a 5-year return requirement.
Zurich and Neos/Encompass generally require applicants to be in Australia at the time of application, but may consider limited cover for New Zealand residents.
These differences highlight the importance of working with an adviser who understands which insurers offer the best coverage for your situation.
The benefits of expat life insurance
1. You can get covered while overseas
Many Australian insurers allow policies to be issued while you are abroad, meaning you don’t have to fly back just to secure cover. This is especially helpful for people who want to take out cover and keep it when they return to Australia or want to have an Australian policy.
2. Worldwide protection
Unlike travel insurance, which covers short-term trips, life insurance provides ongoing protection no matter where you live—unless there is a specific exclusion on your policy related to certain travel regions. If you took out a policy before planning to move or travel somewhere high-risk, you’re generally covered under the same terms as when the policy was issued. However, if you apply for cover today and declare an intention to travel to a high-risk country, the insurer may apply a travel exclusion or decline the cover, meaning you wouldn’t be covered while in that region (DFAT, 2024).
3. Coverage under the same terms as Australian policies
Expat life insurance policies are generally issued under the same terms and conditions outlined in the Product Disclosure Statement (PDS) as policies available to Australian residents. While there may be some limitations at the application stage, the coverage remains comparable to what you’d receive if you were residing in Australia. It’s important to note that life insurance offerings vary globally, with some countries providing similar coverage structures in certain cases (ASIC, Life Insurance Code of Practice, 2024).
4.Consider potential tax implications
Depending on your residency status and personal tax situation, maintaining an Australian-based policy may offer certain tax efficiencies compared to taking out life insurance in your host country. However, tax treatments vary depending on individual circumstances, so it’s always best to consult a tax adviser to understand what’s most suitable for you (ATO, 2024).
What’s next? How Skye Wealth can help
At Skye Wealth, we specialise in helping Australian expats navigate the complexities of getting insured while overseas. Whether you need coverage tailored to your location or guidance on tax-efficient structures, we provide expert advice to ensure your financial security remains intact—no matter where in the world you are.
💡 Thinking about getting covered while living overseas? Contact Skye Wealth today for expert expat insurance advice.
References
ClearView Wealth Limited – Overseas Australians Supporting Info (2024)
Department of Foreign Affairs and Trade (DFAT) – Australians Living Overseas (2024)
Australian Taxation Office (ATO) – Australians living overseas
Australian Securities and Investments Commission (ASIC) – Life Insurance Code of Practice (2024)