Foreign National Programs
Who it's for? Designed for non-U.S. citizens and non-residents operating businesses within the U.S., this is ideal for individuals seeking to ensure their children's financial security through death benefits, cover estate taxes efficiently, or enhance their retirement savings.
Maximizing Benefits: How Foreign Nationals Can Effectively Utilize U.S. Life Insurance Policies
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How Foreign Nationals Use U.S. Life Insurance Policies
That is estate planning—making a plan in advance and naming whom you want to receive the things you own after you die. However, good estate planning is much more than that. It should also:
For affluent foreign nationals, there are significant advantages to purchasing U.S. life insurance policies. These individuals can often readily benefit from the maturity and therefore better rates and often higher quality products characteristic of the U.S. life insurance market.
Life Insurance Policies Tailored for International High-Net-Worth Clients: Meeting Specific Eligibility Criteria
Criteria #1
Have no U.S. ties such as property ownership
Criteria #2
Have a need for large amount of life insurance, which is not available in his or her country of residence.
There are two more benefits that are appealing to many wealthy foreign nationals:
The life insurance policies are denominated in U.S. dollars and where distributions are currently exempt from U.S. tax withholdings on gains in the policy.
The life insurance policies are denominated in U.S. dollars and where distributions are currently exempt from U.S. tax withholdings on gains in the policy.
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U.S. Life Insurance For Foreign Nationals and Non U.S. Residents
Two Requirements For U.S. Life Insurance For Foreign Nationals or Non U.S. Residents
These two requirements must be met prior to submitting any U.S. life insurance application:
- What are your relationship or ties to the U.S
- The application and exam must be done here in the U.S.
What Is Your Relationship To The U.S.
- Business owners, corporate executives or high net worth individuals who conduct business in the U.S.
- Owners of U.S. property or U.S. assets that are subject to estate taxes
- Individuals who are here for work for a period of time. These may be educators, engineers, medical professionals, technicians etc.
- Spouse of a U.S. citizen
If you fall within one of these four qualifying relationships with the U.S., we are off to a good start for qualifying for a U.S. life insurance policy.
Are Your Currently In The U.S. Of Visiting Soon?
Some of the life insurance companies that we work with will allow for you to sign a limited power of attorney (POA). A limited POA will allow us to deliver your life insurance policy to your designated POA who can sign forms on your behalf if you have returned to your country of residency. After we have delivered your policy to your POA, they may mail the policy to you.
What To Expect When Applying For U.S. Life Insurance
COVERAGE AMOUNT: Most life insurance companies require a minimum coverage amount of $250,000 when applying for U.S. life insurance as a foreign national or non-resident. The maximum amount of coverage can range from $5,000,000 – $1,000,000,000 depending on the life insurance company.
FINANCIALS DETAILS: If applying for coverage amounts greater than $1,000,000 the life insurance company will require additional details pertaining to your financials. This is generally required to justify the life insurance amount being applied for.
FOREIGN TRAVEL: In addition to traveling from your home country to the U.S., the life insurance company will require you to complete a travel questionnaire. Traveling to other countries that are not prohibited by the U.S. can lead to a decline of your request for life insurance.
MEDICAL RECORDS: Depending on your responses to the medical question on your insurance exam, the life insurance company may need to order medical records from your doctor. If records are required, it can slow the approval process. To avoid any lengthy delays we may require your assistance in contacting your doctor’s office to help speed up the request.
HOW YOU PAY: life insurance companies require that premiums are paid in U.S. currency generally from a U.S. bank account.
Types Of Available Life Insurance Coverage
TERM LIFE INSURANCE: Fixed premium for 10, 15, 20, 25 or 30 years. After the fixed premium length you can elect to reapply for new coverage or continue paying on the current policy, but at a much more expensive rate.
ROP TERM LIFE INSURANCE: ROP or return of premium term life insurance has all the same feature as regular term insurance but guarantees a full refund of all premiums at the end of the term contract. ROP life insurance generally comes in fixed premium lengths of 20 or 30 years.
UNIVERSAL LIFE INSURANCE: Fixed premium permanent life insurance. More expensive than term, but will never require you to re-apply as it will last forever.
WHOLE LIFE INSURANCE: Similar to universal life insurance as it is also permanent insurance with a fixed premium. This life insurance is the most expensive but has the potential to build up cash.
What Happens When You Pass Away
“What happens if I pass away outside the U.S.? Will my beneficiary receive the death benefit?”
The answer is yes the life insurance death benefit will be paid to your beneficiary. Life insurance companies that underwrite and approve life insurance for foreign nationals or non U.S. residents do not set restrictions to citizenship or residence regardless of where death occurs. As long as the life insurance coverage is active at the time of death, the death benefit will be paid.
Countries That Are Eligible For U.S. Life Insurance As A Foreign National of Non U.S. Resident
Disqualification Of U.S. Life Coverage
- No qualifying relationship with the U.S.
- No plans to visit the U.S.
- Certain occupations
- Countries that are listed on the United States State Department travel warning list
- A country that is at war
- A country that is at risk of political instability, terrorism or uprising
- A country experiencing a famine, endemic, epidemic or pandemic disease
- A country with non-existent or limited medical care
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