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International Group Life Insurance pays a tax-free lump sum to an employee’s family if they die while working for you. It provides the same core benefit as a standard UK Group Life scheme (often called Death in Service), however, it extends to cover a workforce that isn’t entirely UK-based. It’s one of the most valued and most straightforward benefits a company can offer, wherever your people are.
A standard UK scheme is built around UK-resident employees, and it may not adequately cover staff living abroad, working in higher-risk locations, or moving between countries as part of their role. That’s the gap International Group Life Insurance is designed to close.
This page covers what it is, how it differs from a domestic scheme, and what to think through when you’re setting it up for a globally mobile workforce.
At its core, International Group Life Insurance does what UK Death in Service does: if an employee dies while employed by you, their family or nominated beneficiaries receive a lump sum, usually set as a multiple of salary. What changes internationally is where and how that cover applies.
A UK Group Life Insurance scheme is written on the assumption that employees are UK-based, with occasional business travel. Most insurers will cover staff for business trips and even holidays abroad without much fuss.
Things can become more complex when:
A domestic policy may exclude these situations entirely, reduce the payout, or load the premium significantly, often without this being obvious until a claim is tested.
International Group Life Insurance is written specifically to cover employees who are genuinely based, working, or relocating internationally, rather than treating this as an edge case bolted onto a UK-centric policy.
If you already have a UK scheme, it’s worth checking whether international employees are already covered, or whether you’ll need a dedicated policy.
If your international exposure is limited to occasional business travel or short overseas trips by employees who remain UK-based and UK-employed, your existing UK scheme will likely do the job.
However you may need or want to consider a dedicated international policies if you have employees who are:
The distinction that matters to insurers is whether someone is based abroad, for how long, and where. Get this checked against your actual policy wording rather than assuming standard business travel cover extends as far as you’d like it to.
For a handful of employees in one overseas location, extending or arranging a policy is usually a simple conversation. It gets more complex once you have people spread across several countries, for a few reasons.
Some countries require, or strongly favour, local Life Insurance for residents, rather than a policy issued from the UK. Where that’s the case, a global scheme may need to sit alongside, or be replaced by, locally compliant cover in that country.
Where you have discretion, it’s worth deciding centrally what level of cover (salary multiple, eligible dependants, age limits) applies across your whole international workforce, rather than letting it default to whatever each country’s local policy happens to offer.
UK schemes often accept all employees without asking for individual medical underwriting up to a set “free cover limit“. International schemes can apply this differently by country, or require underwriting at lower cover levels than you’d see in the UK, so it’s worth confirming this per country rather than assuming UK norms carry across.
See our full guide: International Employee Benefits: A Guide for Employers.
Your International Group Life Insurance cost will completely depend on your policy options and team demographics. There are several factors that impact the price of a policy, such as:
If you want to compare International Group Life quotes, we’re here to help. We have great relationships with leading providers, and can comb through the fine print to find the most suitable policy for your needs. Give us a call on 02084327333 or email help@drewberry.co.uk to find out your options.
Joe Toft
Senior Employee Benefits Consultant
As an employer, it’s your responsibility to seek local guidance in each jurisdiction regarding the tax implications of a policy. Many get caught out by assuming a benefit that’s taxed one way in the UK is automatically taxed the same wherever the employee happens to be based.
The tax treatment of your International Group Life policy depends on the country where an employee pays tax. For UK-employed staff who happen to be working abroad but remain taxed in the UK, the position is broadly the same as domestic Group Life: premiums are typically an allowable business expense for the employer, and the payout to the employee’s family is normally free of income tax, though inheritance tax can apply depending on how the policy is written and who benefits.
Often not automatically, or not at the same level. Most UK schemes are built around UK-based staff with occasional travel, not permanent relocation. If an employee is moving abroad long-term, it’s worth checking with your insurer explicitly rather than assuming continuity of cover.
It can. Insurers may exclude certain high-risk locations, reduce the payout, or increase the premium for employees based in areas with active conflict, epidemic risk, or elevated security concerns. This is worth confirming for any employee moving to, or already based in, a location that might fall into this category.
Typically a list of eligible employees, their locations, salaries (since cover is usually a multiple of salary), and any specific locations that might be flagged as higher risk by an insurer. The more detail you can provide upfront, the more accurately a policy can be priced and structured.
If you’re looking to set up International Group Life Insurance, or want to check whether your existing UK scheme provides appropriate cover for employees based overseas, our specialists can help.
We’ll take the time to understand your workforce and requirements, compare options from across the market, and help you find the right cover for your business
To learn more and compare quotes from across the market, get in touch with our specialists on 02084327333 for a no-obligation consultation.
Employee benefits can be a headache. But our specialists do this day-in, day-out, offering first class service when you need it most. Here’s why you should talk to us:
