Life Insurance for foreign nationals
To identify the best option for a life insurance client, we first determine whether the insured holds some connection / assets in the United States. If a connection / nexus to the U.S. exist then option 1 is the preferred selection. On the other hand, option 2 is tailored for foreign nationals with no U.S.connection but are interested in a life insurance policy in U.S. dollar.
Option 1: Foreign nationals with U.S. nexus
Why Foreign Nationals Should Consider U.S. Life Insurance?
If you do not reside in the United States but spend considerable time, hold assets or maintain a significant connection to the U.S. you may qualify for U.S. Life Insurance for Foreign Nationals. With over 35 years of experience providing solutions for affluent foreign nationals, Atlas Financial Group can handle even the most complex of foreign national cases to help you find the most competitive rates.
The first thing to point out is that non-residents save big on premium by qualifying for U.S life insurance. Although these policies are also offered to U.S. citizen, there's a much more sizable benefit for high net worth foreign nationals to obtain U.S. life insurance protection compared to actual U.S. citizens.
The reason is simple, the U.S. life insurance market offers better products at lower premiums compared to local options. To be eligible, foreign nationals need to have some type of U.S. ties (Such as real estate property, bank accounts, business interest, investment accounts, etc.) in order to qualify for U.S. life insurance.
In addition, foreign nationals will need to complete the application and medical exam inside the United States.
The U.S. Life Insurance Market
Considering that the U.S. life insurance market is ranked as one of the most secure markets in the world. The foreign high-net worth community utilizes the U.S. life insurance market to tackle objectives such as wealth transfer, estate or tax planning, asset preservation and family income protection.
Additionally, the death benefit is not only paid in U.S. dollars but also is exempt from any tax implications. (Death Benefit is tax free) Having questions or interested in purchasing U.S. Life Insurance policy for foreign nationals? Atlas Financial Group can help you obtain the best rates and develop a strategic plan that meets your life insurance goals.
How to qualify for U.S life insurance?
Every life application is underwritten individually on a case by case basis, however general guidelines for a foreign national looking to obtain U.S. life insurance is as follows:
- Must hold a valid U.S. visa
- Resides outside the U.S. for the majority of the year; more than six months (183 days)
- Has some connection to the U.S. (Property, Investments, Travel...)
What to Expect When Applying for U.S. Life Insurance?
Most U.S. insurance companies are not licensed or authorized to sell outside the United States. For this reason, the sale of the life insurance policy must take place within the U.S. Individuals are required to travel to the United States to sign and receive their U.S. life policy. Also, while in the U.S., a simple medical exam will be completed as part of the application process. Depending on health, you may qualify for best class rates.
Since it is a U.S. life insurance policy, applicants must show a U.S. need for coverage. This can be accomplished by the individual’s connection to the U.S. which can consist of:
- U.S. Banking and Investment accounts
- Ownership stake in U.S business
- Ownership of U.S. property
- Frequent travel to the U.S. (personal or business)
The more substantial ties an individual has to the U.S., the higher justifiable need for U.S. life insurance protection
Foreign nationals with "NO" U.S. connection
U.S. Currency Life Insurance for Foreign Nationals
Foreign nationals seek U.S. dollar life insurance for its stablility and globally accepted currency. Many people trust the U.S. economy, making the U.S. dollar a preferred choice for financial transactions and investments. If a foreign national has financial interests or assets denominated in U.S. dollars, having a life insurance policy in the same currency can simplify financial planning and reduce exposure to currency exchange rate fluctuations.
The Bermuda Life Insurance Market
The Bermuda life insurance market is known for its prominence in the international insurance and reinsurance industry. Bermuda has developed into a major global insurance hub, attracting a significant share of the world's insurance and reinsurance business. Several factors contribute to Bermuda's appeal as a jurisdiction for life insurance:
Bermuda is a popular domicile for captive insurance companies, including those focused on life insurance. Captive insurers are subsidiaries established by companies to provide coverage for their specific risks, and Bermuda's regulatory environment facilitates the formation and operation of captives.