For most offshore regular savings plans held by expats, stopping payments does not generally mean losing everything. The money already invested will usually stay in the plan, but stopping can affect its value and future growth, and the outcome depends on your plan's terms, how long you have been paying and, for tax, where you are resident at the time. Before you stop, get your current and surrender values in writing and understand which options your plan offers.

What usually happens when you stop

Regular savings plans sold to expats are commonly designed around a fixed term and a fixed monthly payment. Many have terms that make early changes costly, particularly in the first few years. These products are often expensive and frequently sold with high upfront commission, which is why the value can look lower than what was paid in, especially early on.

When you stop paying, the plan does not normally simply close. What happens next depends on how you stop and what your policy allows. Your policy terms and conditions, and the key features document you received at the start, set out what applies to you.

It is also worth thinking about your original goal. The longer payments stay below the planned level, the further you may move from the target you set, and the more you may need to save later to catch up.

Your main options

Depending on your plan, you may be able to:

  • Keep paying as planned. Sometimes this may suit, particularly if the earliest years are already behind you.
  • Reduce your payments. Some plans allow lower premiums within limits.
  • Take a premium holiday. A temporary pause, after which you restart payments.
  • Make the plan "paid up". You stop paying permanently, and the money already in the plan generally remains invested until you surrender it or the plan ends.
  • Surrender the plan. You cash it in and receive the surrender value, which may be less than you paid in.

Not every plan allows every option, and each one can affect the value differently. The provider can tell you which apply to your policy and what the projected effect is. Our guide to this type of offshore plan explains how they are generally structured.

Questions to ask before you decide

Ask the provider for written answers to these:

  1. What is the current value and the surrender value today?
  2. Which options does my policy allow: reduction, premium holiday, paid up or surrender?
  3. What would the projected value be under each option at the plan's end date?
  4. If I take a premium holiday, how long can it last and what happens if I do not restart?
  5. Is there a date after which early surrender terms no longer apply?

With these figures, you can compare the choices side by side rather than guessing. Think about the wider picture too: your cash flow, other savings, whether you are moving country, and how the plan would be taxed where you will live.

Worked example

Illustrative example only, not a real client.

Tom has paid £500 a month into a 20-year plan for three years, a total of £18,000 (£500 x 36). He has changed jobs and wants to free up cash flow. He asks his provider for figures and receives:

  • Current value: £16,500
  • Surrender value: £11,000
  • Projected values at the end of the term if he continues, makes the plan paid up, or takes a 12-month premium holiday

The figures are invented for illustration and do not reflect any particular product. Seeing the gap between the current and surrender values, Tom decides not to act on impulse. He books an independent review to compare the options against his budget and other goals. Depending on his circumstances, the answer might be to reduce payments, pause, or stop altogether.

Tax and practical points

The UAE does not levy income tax on individuals, so a surrender by a UAE resident would generally not be taxed locally. For UK purposes, HMRC guidance indicates that an individual is generally not liable to tax under the chargeable event rules on gains arising in a tax year in which they are not UK resident, subject to exceptions, including the temporary non-residence rules if you return to the UK within five years. If you are UK resident, or become UK resident again, a surrender or part surrender may create a chargeable event gain. Other countries, such as Spain and Portugal, have their own rules, so timing a surrender around a move between countries can matter.

If you are unhappy with how your request is handled, raise a formal complaint with the provider first. For insurers licensed by the Central Bank of the UAE, Sanadak may be able to consider complaints that are not resolved.

Common mistakes

  • Cancelling a direct debit without telling the provider, which may trigger consequences you did not choose.
  • Comparing options using only the current value rather than the surrender value.
  • Assuming the original adviser is the only person who can help.
  • Making a decision before checking how the money would be taxed in your next country.

Sources and further reading

Before you stop paying, request a free independent policy review from a regulated financial adviser to understand your figures and options.

Last reviewed: October 2026. Tax year: 2026/27. Jurisdictions covered: UAE, UK. Rates, legislation and guidance change, so recheck before relying on this. Rules can differ between England and Wales, Scotland and Northern Ireland; tax residence is fact-specific; treaty outcomes depend on residence, domicile or nationality provisions; examples are simplified and omit reliefs, costs, exchange rates and anti-avoidance rules. This is general information, not financial, tax or legal advice. Take advice in the relevant country before acting.