How to Get Life insurance for Non U.S. Residents & Foreign Nationals

Welcome to I&E. We specialize in life insurance for foreign nationals and non U.S. residents. The following article touches on many of the requirements necessary for eligibility.

If you have any questions on the content below or would like to inquire into your specific eligibility, please get in contact with us today.

On your search for the right company to meet your needs it is important to understand that there is no “best” foreign national life insurance company. Rather, the best life insurance company for you will be the one that offers the right policy, designed for your specific need and purpose.

If you are in the market for life insurance as a non resident alien, foreign national, or non U.S. resident, we can help put the pieces together to create a holistic plan that provides you with the ability to create wealth, protect your existing wealth and leave a legacy.

Foreign National Life Insurance

Disclaimer: all information provided in the following article on getting U.S. based life insurance as a non U.S. resident or Foreign National is for general purposes only and is not specific advice for your situation. We are not offering tax advice. Please consult with your own tax professional.

11 Benefits to Your U.S. life insurance policy as a Non U.S. Resident or Foreign National:

1. Under IRC 7702, cash value life insurance has many U.S. tax advantages including:

• The death benefit goes to your beneficiary income tax free
• Tax free life insurance policy loans
• Tax deferred cash value accumulation
• Tax free distribution of life insurance dividends and cash value growth
• Tax free cash withdrawals up to basis
• U.S citizens and resident aliens are subject to estate and gift tax on their worldwide assets. However, nonresident aliens are subject to estate and gift tax only on assets that are considered U.S. situs property.
• Life insurance is typically not considered U.S. situs property.
• As always, when it comes to taxes, consult a professional.

2. Business and Corporate life insurance makes an excellent vehicle for business continuation and succession planning, including buy sell agreements and key man life insurance.

3. A life insurance death benefit is not taxable and proceeds can avoid estate taxes when used in conjunction with a proper estate plan.

4. You can typically get more life insurance coverage in the U.S. than in your resident country.

5. Your cash value and death benefit are in U.S. dollars.

6. Unique creditor protection.

7. Life insurance provides an excellent wealth building tool.

8. Your policy can be designed to maximize cash value.

9. You can implement the infinite banking concept® using your policy for private financing.

10. Life insurance provides financial leverage.

11. Your policy may provide accelerated benefits, including a waiver of premium rider or long-term care rider.

Requirements to obtaining U.S. based life insurance as a non U.S. resident or Foreign National

There are two main requirements involved in securing U.S. based life insurance as a non resident alien, foreign national, or non U.S. resident. The two categories are “connection” and “valid need.”

Connection to U.S.

As a foreign national who does not reside in the U.S. you must establish a connection to the U.S. Some connections to the U.S. that are generally accepted would be:

• Real estate ownership
• U.S. based business ownership
• U.S. estate tax liability
• U.S. citizen or permanent resident (e.g., green card holder)
• Married to a U.S. citizen
• Family in the U.S.
• Good prospects for remaining in the U.S. indefinitely
• Written commitment with your U.S. based employer
• Student at a University or College

Valid Need

Further, you must have a valid need for U.S. based life insurance. The following qualify for valid needs:

• Wealth Preservation
• Funding Estate Taxes
• Business Succession Planning
• Income Protection

Must Be In US

All activity relating to obtaining life insurance must take place in the U.S. This includes the solicitation all the way up to policy delivery. Ideally, you will want to be in the U.S. for up to 90 days as underwriting may take anywhere from 1 week up to 12 weeks, or more depending on your unique situation.

US Financial Institution

Premiums must be paid through wire transfer, automatic debit or by check from a U.S. financial institution from your own account.

Occupation

The carrier will want to know what your occupation is. Foreign national life insurance is also available for students, such as those in the U.S. temporarily studying at Uniersity.

You may not be eligible if you are involved in foreign military, police, government or judicial services.

Other occupations that tend to make it difficult to qualify for U.S. based life insurance for a non U.S. resident or foreign national would be big game hunters, missionaries and journalists.

Insurable Interest

Coverage amount varies and you must have an insurable interest. An insurable interest means the beneficiary has a financial interest in the continued life of the insured and that the beneficiary would sustain a financial loss if the insured die prematurely.

The bigger companies will insure you up to $40,000,000, i.e. $40 million if you are a resident of an “A” country with the accompanying insurable interest.

Ages

You will need to be between the ages of 18 – 75 to be eligible. Age limits vary from carrier to carrier.

Rating

Life insurance companies will assign a specific health rating to your policy. You must be able to qualify for at least a Table D rating or better.

No Premium Financing

You are NOT allowed to use premium financing. If you need premium financing life insurance you will need to meet other criteria. Please call or email us for more information.

Necessary ID

Some identification will be required, such as:

• A copy of your visa and your passport number, expiration date and country of issuance.
• Permanent resident ID card, i.e. “green card” or “white card”

If you are in the U.S. annually for at least nine months and you have a minimum of one year of U.S. residency prior to your request for life insurance, you will be considered if you hold one of the following temporary visa types: E1, E2, H1B, H1C, H4, K1, K3, L1, L2, O1, O3, P, TN, V1. All other visa types will be considered on a case by case basis.

U.S. based life insurance is easier to get if you are in the U.S. on a visa and you plan on remaining in the U.S. for at least 5 years.

You must fill out the Foreign Travel/National Questionnaire also known as a Foreign Resident Inquiry Form. Different countries are classified according to a rating scale (A, B, C, D, and U). Certain countries and its citizens will not be eligible for different reasons, such as country risk or due to specific rules of that country regarding buying life insurance from a foreign nation.

Owner

As a foreign resident, the policy must be owned by you, the insured, or a U.S. based entity that has the requisite insurable interest. A third-party foreign entity or a foreign resident may not own your policy.

Potential Eligible Countries

Please note: The following lists are subject to change and may not be up to date. Last updated March 2018. 

The following list of countries are for informational purposes only. Being a resident from one of the countries is not a guarantee that you can qualify for U.S. based life insurance as a foreign national or non U.S. resident.

Most of our business are Non-US residents of China and Mexico, both currently “B” countries. However, there are many other countries that may be considered.

Residents of the following countries may be considered for U.S. based life insurance:

Antigua, Aruba, Australia, Austria, Bahamas, Bahrain, Barbados, Barbuda, Belgium, Belize, Bermuda, Bolivia, Brazil, Canada (except British Colombia and Manitoba), Cayman Islands, Chile, China, Colombia, Costa Rica, Curacao, Denmark, Dominican Republic, Ecuador, Egypt, Germany, Greece, Grenada, Guatemala, Guyana, Holland, Honduras, Hong Kong, Indonesia, Israel, Italy, Jamaica, Latvia, Luxembourg, Malaysia, Marshall Islands, Mexico, Monaco, Montserrat, Morocco, Netherlands, Netherlands Antilles, Nicaragua, Norway, Pakistan, Peru, Poland, Portugal, Romania, Russia, Saudi Arabia, St. Kitts and Nevis, St. Lucia, St. Maarten, Singapore, South Africa, South Korea, Suriname, Sweden, Switzerland, Taiwan, Trinidad, Tobago, Turkey, Turks & Caicos, Ukraine, United Arab Emirates, United Kingdom, Venezuela, Vietnam

Countries that have laws that prohibit the sale of life insurance to their residents include:

Argentina, Canadian Provinces of Alberta, British Columbia and Manitoba, Croatia, Czech Republic, France, Hungary, India, Japan, Panama and Spain.

Citizens of other countries living in Czech Republic and Spain may still be eligible.

Please note: Life insurance companies will consider you a non-U.S. resident if you reside or travel outside the U.S. over three months a year for “B” countries and over six months a year for “A” countries.

List of “A” Countries:

A Non-Resident Alien from an “A” or “B” country, living in the U.S. full time on a valid visa can qualify for up to $40,000,000 of permanent life insurance with specific carriers. In addition, applicants from A or B countries can qualify for the best rate class. 

Albania, American Samoa, Andorra, Anguilla, Antigua and Barbuda, Argentina, Aruba, Australia, Austria, Bahrain, Barbados, Barbuda, Belgium, Bermuda, Bosnia & Herzegovina, Brunei, Bulgaria, Canary Islands, Cayman Islands, Chile, Cook Islands, Croatia, Cyprus, Czech Republic, Denmark, Dominica, Estonia, Falkland Islands, Finland, France, French Guiana, French Polynesia, Germany, Greece, Greenland, Grenada, Guadeloupe, Hong Kong, Hungary, Iceland, Ireland, Italy, Israel (excluding Gaza and West Bank), Japan, Jordan, Kosovo, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Macau, Macedonia, Malta, Marshall Islands, Martinique, Monaco, Montenegro, Montserrat, Netherlands, Netherlands Antilles, New Caledonia, New Zealand, Northern Mariana Islands, Norway, Oman, Palau, Poland, Portugal, Qatar, Romania, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, San Marino, Serbia, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Taiwan, Turks/Caicos, United Arab Emirates, United Kingdom, Uruguay, Vatican City, Virgin Islands (U.S. and British)

List of “B” Countries

Algeria, Armenia, Azerbaijan, Bahamas, Belarus, Brazil, Cape Verde, China, Costa Rica, Dominican Republic, Ecuador, Egypt, Federated States of Micronesia, Fiji, French Guiana, Georgia, Jamaica, Kazakhstan, Lebanon, Libya, Malaysia, Maldives, Mauritius, Mexico, Moldova, Mongolia, Morocco, Niue, Panama, Paraguay, Peru, Russia, Samoa, Saudi Arabia, Seychelles, Sri Lanka, Suriname, Tonga, Trinidad and Tobago, Tunisia, Turkey, Ukraine, Uzbekistan, Vietnam

List of “C” Countries

A Non-Resident Alien from an “C” country, living in the U.S. full time on a valid visa can qualify for up to $24,000,000 of permanent life insurance with specific carriers. In addition, applicants from C countries can qualify for the preferred rate class (preferred plus rate class not available). 

Bangladesh, Belize, Bolivia, Botswana, Colombia, Comoros, El Salvador, Colombia, Guatemala, Guyana, Honduras, India, Indonesia, Kiribati, Kyrgyzstan, Laos, Namibia, Nauru, Nepal, Nicaragua, Pakistan, Philippines, Solomon Islands, South Africa, Tajikistan, Thailand, Turkmenistan, Tuvalu, Vanuatu, Venezuela, West Bank

Conclusion

You do not need to know everything listed here. However, what you do need is to have a life insurance strategist that does understand foreign national cases and life insurance for non-us residents.

At I&E, we will work closely with you to help you obtain your life insurance coverage. Give us a call today or send us a message by filling out our questionnaire if you have any questions or need more information.