Requirements for Foreign Nationals Procuring U.S. Life Insurance
While there are many reasons for a Foreign National to want to procure U.S. based life insurance, the market is very complex and requires extensive experience and understanding of the laws of all different countries. For Foreign Nationals to procure life insurance from a US Carrier, there are different requirements than a U.S Citizen and differ for each country of origin. One universal requirement is that if Foreign Nationals want to invest in a U.S. life insurance structure, they must travel to the U.S. to complete the underwriting exam and paperwork.
Beyond international tax laws, each insurance company has its own specific underwriting guidelines (some more favorable than others). For example, some insurance carriers require U.S. based assets while others require none. Some require U.S. ownership of the policy such as a trust domiciled in the U.S. There are also limitations on the amounts of insurance one can procure because the reinsurance markets in the U.S. are more stringent with Foreign Nationals for “jumbo” cases.
So, while the use of U.S. based life insurance for Foreign Nationals is a very attractive option, due to the complexity of international law and differing insurance company guidelines, one could completely nullify the benefits if done without taking the appropriate steps. Copperstone Partners has been working in the Foreign Nationals marketplace for over a decade. To add to our knowledge, we have a network of accounting and law firms in various countries from Mexico City to Switzerland that rely on us for our expertise in this niche and who continue to help us stay current on all changing laws in the international community.
Please call us at 888 773 6787 to discuss how a U.S. based life insurance structure may greatly enhance your financial planning.