Life insurance in Italy: Complete guide for expats

Life insurance is often intended to offer financial security for people left behind when a policy holder dies. You may want a life insurance policy to make sure your partner or children get a fixed sum of money to help them after your death, or you might want life insurance which lets you invest your premiums in the hope your pay out amount grows over time.

As an expat your life insurance needs may look a little different to Italian citizens and permanent residents. Your decisions may be dictated by how long you plan to be in Italy, and the situation your dependents are in during your stay.

What is life insurance?

Life insurance is insurance which provides a cash lump sum upon the death of a policy holder. Some Italian policies also offer survivor benefits, which means they pay out if the policy holder lives to a certain date, rather than paying out upon their death.

Death benefits may allow you to guarantee that your loved ones will have the financial means to cover funeral costs, continue paying a mortgage, or to relocate to your home country if you’re in Italy as an expat. Survivor benefits on the other hand can help assure you that you’ll have enough money to get by if you live beyond a certain age.

How does life insurance work?

When you take out life insurance you’ll agree to pay fixed premiums – monthly, quarterly or annually – in return for cover based on your policy rules. This is usually in the form of a lump sum paid out to your nominated beneficiaries in the event of your death, or on a certain date if you choose a policy with survivor benefits.

Different types of life insurance are available in Italy to meet the varied needs of customers – this guide walks through some which may be suited to the needs of expats to start your research on which policy is right for you.

Types of life insurance available in Italy

Life insurance in Italy can often be split into two major categories. Generali – a provider of life insurance in Italy – explains these ae:

• Pure risk policies – which may offer death benefits which pay out upon the death of the holder, or survivor benefits which pay out on a set date if the policy owner is still alive, with cover levels varied by policy, which may be a lump sum or ongoing payment to beneficiaries
• Investment policies – which combine protection in the case of the death of the policy holder, with investment options which allow the policy holder to invest their money in the hope of growing the pay out amount over time

Within each category there are different policy types, which can suit the needs of various individuals including expats in Italy. 

Here’s a quick summary of the key policy types we look at in this guide, with more detail coming up right after.

	Pure Risk Insurance	Protection + Investment Insurance
Target market	Customers looking to offer financial security for families or dependents	Customers looking to invest premiums in the hope of increasing the value over time
Pay out timing	Upon death – or in the case of survivorship policies, on a fixed date if the policy holder is still alive	Usually upon death
Pay out options	Lump sum or regular pay out	Lump sum or regular pay out
Cover length	Fixed term, or can be whole of life	Whole of life
Costs	Costs depend on different policy and pay out basis	Costs depend on different policy and pay out basis

This guide is for information only and does not constitute advice. Different types of insurance are suitable for different individual needs. Get professional advice and support to choose the right policy for your unique situation.

Pure Risk Insurance

Pure Risk Insurance is intended to cover the financial well being of either the policy holder, or their dependents. 

There are two different key ways risk based insurance pays out:

Death benefits: pays out a lump sum or annuity upon the death of the policy holder, for individuals who want to ensure the financial well being of their family in the event of their death. 

Survivor benefits: pays out a lump sum or annuity upon a specific date, if the policy holder is still alive, for individuals who want to make sure they have adequate funds to cover their costs past a certain age

Mixed benefit policies also exist, which may pay out a certain amount on a fixed date if the holder survives, and a different amount upon their death if it’s before this date.

Policies might be offered on a term basis where you select the length of time the cover lasts for, or a whole of life basis in which case you commit to paying premiums until death.

This policy type may suit an expat in Italy on a survivorship basis if you’re planning on staying only a fixed amount of time. A death benefits policy may be more suited to expats retiring in Italy or otherwise relocating there permanently.

Risk based life insurance pros	Risk based life insurance cons
✅ Different policy and payout options depending on individual need ✅ Some policies offer lower premiums with matched cover levels ✅  Possible supplement to a pension if you take survivor benefits	❌ Some policies can have very high premiums ❌ Premiums usually depend on the age and health of the policy holder

Protection + Investment Insurance

Investment life insurance policies allow the policy holder to pay their premiums into an invested fund with the hope that the funds will grow in time, allowing for a larger pay out for their beneficiaries. Common structures include:

Unit-linked policies: Premiums are invested in specialised funds, and the amount that is available to pay out upon death is linked to the performance of these funds

Index-linked policies: Premiums are invested in index funds and the pay out amount is based on the collective performance of all companies in the index

Policies do vary but some might offer options to make some withdrawals from your policy under favourable tax rules.

Investment funds may be attractive to expats in Italy who are planning on staying in the long term. As investments of any type tend to be a long term commitment this may not be the best product if you’re unsure how long you’ll be living in the country.

Investment Insurance pros	Investment  Insurance cons
✅ Investment element may allow pay out amount to grow ✅ Premiums set according to the cover level you require ✅ Different asset types available for investment	❌ You may need to pay premiums for the rest of your life  ❌ Pay out value depends on asset performance

Life insurance requirements for expats in Italy

Whether or not you can get life insurance coverage in Italy will depend on many factors, including your residency situation, age, health and the type of policy you need.

Residence requirements may apply to life insurance policies in Italy. It’s common to find policies that are only intended for use by Italian residents. If you’re not a permanent resident or if you intend to move in future you’ll need to shop around for policies which suit your needs.

There may also be age rules to think about. Insurance may be only offered to people in a certain age bracket – 18 to 64 for example, or you might find that the pay out amount changes depending on the age of the policy holder.

Finally, it’s common to need to give medical details to open a life insurance policy. You may need to complete a medical questionnaire, complete a medical interview or undergo health checks, depending on the situation. Your suitability for a policy, and the costs, may change based on your health situation. 

How much life insurance do you need?

The amount of life insurance you need depends on many factors. You’ll need to consider what value lump sum you would want to pay out, based on the situation your loved ones would be in if you died. 

This is enormously varied. For example, you may have a local or international mortgage which would need to be paid, perhaps your partner has stopped working to support your international move, and would need funds for day to day life, or maybe you’d like to leave extra to cover the costs of repatriation if your family would choose to move home if you were to die. 

When you arrange life insurance in Italy it is almost always necessary to talk through your personal situation with a broker or a member of the insurance team to agree the cover and policy which may suit your needs. As part of this conversation, you might want to ask the broker how to calculate life insurance needs in your personal circumstances, so you’ll be confident you’re buying the right policy for you.

Life insurance costs and premiums in Italy

Insurers calculate the premiums payable on a life insurance policy on an individual basis. Factors affecting premium costs for pure risk policies include:

• Your age
• Your health
• How long you want the cover for
• The level of cover you need
• Whether you smoke

The premium calculation might be different if you’re planning on getting a policy which also offers an investment element.

You will need to talk to an insurance broker to get a few quotes based on your unique information, to get a feel for the premium costs and options you’re likely to have.

Buying life insurance in Italy as an expat

Buying life insurance in Italy as an expat should not be complicated as long as you’re a legal resident and can provide all the documents and information the specific insurer requires. Here’s an outline of the usual process:

Step 1: Decide on the cover and policy type you require

Consider the cover level you need, and the policy type – risk based or investment, for example. Get professional advice if you’re not sure which policy is right for you.

Step 2: Shop around to generate quotes from different providers

Most insurers ask you to give them a call to get an indicative quote for premiums and costs. Or you can use a broker to get quotes for you, to decide the right policy for your family.

Step 3: Apply online, uploading any required documents

You can usually submit your application online, and will be asked to upload documents proving your identity, address and legal residence in Italy. Depending on policy type you may also need to provide health, employment and other information and paperwork.

Step 4: Undergo medical checkups if needed

Some policies will accept your medical information without checkups – others require you to attend an in person appointment to verify your health.

Step 5: Receive your policy document and start paying premiums 

Once your policy is prepared you’ll be sent all the relevant paperwork to review and you can start to pay your premiums.

Employer-provided life insurance

Employer-provided life insurance is a common benefit for employees in Italy at a management level and above. This usually provides for a pay out of a fixed lump sum, calculated in reference to your salary, if you were to die in service. Your beneficiaries may get a pay out of 3x your salary, for example, subject to specified terms and conditions. 

Ask your HR department if this is provided in your workplace.

International life insurance vs local coverage

Which is best from international life insurance vs local coverage depends on your situation.

If you already have a life insurance policy in your home country you will need to talk to your insurer to understand what happens when you move overseas.

If you’re looking for a new policy on arrival in Italy, it’s helpful to know that there are several insurers and brokers which specialise in serving international residents. Take a look at Generali as a good example with English language support. 

Customers who are looking for a policy which can remain open wherever in the world you live, will likely need to talk to a specialist broker and look for offshore insurers which have more flexible residency policies compared to major Italian insurers.

If you need to pay for life insurance premiums in your home country or in foreign currencies, consider using Wise to make your overseas transfers.

Wise offers one off and recurring payments and uses the mid-market exchange rate with low fees, and offers transfers to 140+ countries globally. This can help ensure your recurring bills are paid seamlessly and without excess costs.

Life insurance beneficiaries and international considerations

If you’re an expat in Italy you may want to name individuals in a different country to be your beneficiaries in the case you were to die and your policy pays out. This may or may not be possible, depending on the policy and the country involved.

You may need to take professional advice to check the policy you have selected is suitable for your specific situation. Some important questions to think about include:

• Is naming beneficiaries in different countries possible?
• What are the tax implications for international beneficiaries based on their residency?
• What is the payout procedure if your policy pays out to someone overseas?
• How does currency conversion work if there’s a cross border payment?

If you’ve received a payment which you need to move overseas, choosing a provider like Wise can help mitigate some of the concerns about managing money across currencies. You can send payments with the mid-market rate, or receive and hold payouts in 8+ currencies without needing to convert unnecessarily, in a Wise account.

Life insurance when moving countries

Life insurance providers set their own rules about policy eligibility, which may include requiring Italian residence. If you’re moving from Italy to another country and have an active life insurance policy here, you’ll need to check with your insurer if you can maintain your policy from another country. If not, you may need to close it and open a new one once you relocate.

Tax implications of life insurance in Italy

The tax implications of life insurance in Italy can vary depending on the policy you select and your personal situation. In some cases, for example, you might be able to get a tax deduction to offset some of the costs of paying premiums.

As tax matters can be complex – and get even more complicated when dealing with different countries – you will need to get professional advice about the potential tax implications of life insurance in Italy in your situation.

Life insurance and estate planning

Italy has inheritance tax which is variable depending on the amount inherited and the relationship of the beneficiary to the deceased. If you’re inheriting in Italy, including getting a life insurance pay out, you’ll need to get tax advice to make sure you report and pay any applicable taxes properly.

Planning and management of international assets including insurance lump sums could involve large international transactions. If you need to move a large payment overseas, Wise could help, with high transfer limits (usually around 1m GBP or equivalent), transfer fees which get lower when you send over 20,000 GBP, the mid-market exchange rate and a dedicated customer support team for large transfers.

Common life insurance mistakes to avoid for expats

Before you decide on the policy for you, consider these common life insurance mistakes to avoid for expats:

• Choosing the wrong policy type for expat lifestyle – not all policies are right for people living overseas. Get professional advice when you choose
• Underinsuring – bear in mind that your dependents may have different needs while you’re living internationally, and you may want to raise your lump sum accordingly, to pay for relocation for example
• Underestimating currency costs – fluctuations in currency rates could mean you have not selected a policy which matches your needs 
• Failing to update beneficiaries after moves – make sure your insurer has your most up to date information at all times
• Letting coverage lapse during relocations – check if your policy is valid after a planned move, and make sure you continue with premiums if it is

Life insurance claims process

If a loved one dies and you need to submit a life insurance claim, you’ll first need to get in touch with the insurer to report their death. To make the process easier you may need to find the policy number, and you can check the additional information the insurer needs when you speak to their service team. 

Usually you will be asked to submit a death certificate upon receipt and other relevant paperwork like your own ID documents. Once a claim has been approved it will be paid out according to the policy type.

Getting professional advice in Italy

Before you choose a life insurance policy in Italy you’ll need to invest some time in research, including getting professional support from qualified individuals who understand your own needs and the Italian insurance market.

You’ll be able to get quotes and individual advice from insurance providers, or from brokers which work with many different insurers. You can also look for online or word of mouth recommendations of individual brokers, and compare the options available to you to decide which is the best fit.

Life insurance companies in Italy

Ultimately, the best life insurance plan and company will vary depending on each person’s needs.

To start your research, here are some life insurance companies in Italy you may want to look into:

• Generali
• Poste Vita
• Feather Insurance (broker)
• 3 Capital  (broker)

* Companies selected to represent providers with a broad range of policy options suited to varying customer needs

Conclusion

Life insurance can offer peace of mind that your loved ones will be protected if you were to die. Survivor benefit policies in Italy can also be useful if you’re concerned with making sure you have enough money even if you live to a very old age.

This guide walks through some basics of the types of policy available – and you can also get professional advice through a broker to help you choose the right service for your needs.

If you’ve received a lump sum payment which you need to repatriate or convert to a different currency, remember you can make high value payments from Italy, to 140+ countries, with Wise. Wise uses the mid-market rate with no markup to worry about, and  fee discounts on high value payments over 20,000 GBP. This helps with keeping costs low and making the process to transfer overseas simple, convenient and cheap.

FAQ Section

Is life insurance tax deductible?

The premiums on some insurance policies may be subject to tax deductions. Tax can be a complex area, so you’ll need to get professional advice based on your individual situation to understand if any element of your life insurance may be tax deductible in Italy.

How much should life insurance cost?

Insurers calculate the premiums payable on a life insurance policy on an individual basis. Factors affecting premium costs include age, health, and level of cover. Talk to an insurance broker to get a few quotes based on your unique information, to get a feel for the premium costs and options you’re likely to have.

What is a life insurance beneficiary?

A life insurance beneficiary is the individual who receives a pay out upon the death of a life insurance policy holder.

What is the difference between term and permanent life insurance?

Term life insurance is usually only offered for a fixed period, while permanent or whole of life cover is meant to be held on an ongoing basis until the death of the policy holder.

How to get life insurance?

You can get life insurance from many banks and brokers. There are some which specialise in expat requirements which can be especially helpful, such as Generali.