In this article we'll discuss what it takes for non-us residents and foreign nationals to obtain life insurance coverage in the United States.
It's pretty clear that a lot of non US residents want to own US life insurance because of the low costs and stability of United States life insurance companies. The process is actually pretty simple IF you're willing to jump through a couple hoops.
We get a lot of life insurance requests from people all over the world. Most of our requests come from the Bahamas, Puerto Rico, Mexico, Australia, South America, Europe, Hong Kong and Singapore. These are mostly foreign nationals looking for life insurance coverage, but we can also help non-US residents purchase coverage as well.
Why buy life insurance coverage in the United States?
2 Main Reasons:
1. Lower cost.
Term life insurance rates are the lowest in the WORLD because of the competition in the US. Furthermore, the pricing and performance of permanent life insurance policies far exceeds the rest of the world. Many businesses buy their key-man and succession policies in the US for this reason alone.
2. Easier legal system for distribution.
Many countries have forced heirship laws that can dictate (to different degrees) where your estate gets passed to. Owning a life insurance policy in the United States is a lot more flexible than dealing with these heirship laws in your own country.
Requirements to Buy Life Insurance for Non-US Residents
- Life insurance is only offered to business owners OR professionals working in technology, medical, engineering, scientific or similar fields. High net worth individuals and corporate executives are also eligible.
- The application, medical exam and contract delivery must ALL be completed in the United States. This process can take 4-8 weeks depending on how quick we obtain your medical records.
- Minimum face amounts of $250,000 are required. Maximum face amount range from carrier to carrier, usually $5,000,000 - $20,000,000. However, in business cases, limits can be as high as $100,000,000.
- Recent third party financial documentation for face amounts of $1,000,000 or more are required.
- Premiums need to be paid from a US bank account and you must have a US address for billing and notices.
- You must have US ties. Whether it be family of business.
We are experts in navigating the requirements listed above and have helped many non-us residents and foreign nationals secure US life insurance.
Our discovery process looks like this:
- Fully understand your specific risk via a phone conversation (we can skype if you prefer)
- Identify the life insurance carriers who will take your risk
- From those carriers, we'll find the one that will provide the lowest rates
- Present you with our findings and coordinate the application
We'll make the process as smooth as possible and go the extra mile to make sure this gets done efficiently.
Consider the Acquisition Cost
For someone in the Bahamas that wants a life insurance policy, it's a pretty quick and cheap plane ride to Florida to complete the requirements.
For someone living in Singapore, it may be a little different unless you're applying for a sizeable amount.
Countries where we CANNOT provide life insurance
Unfortunately, there are some countries that prevent their residents to purchase life insurance outside of their country of residence OR the risk is too high. These countries currently include:
Afghanistan, Albania, Algeria, Angola, Armenia, Argentina, Azerbaijan, Bangladesh, Bosnia, Bulgaria, Burma, Burundi, Cambodia, Cameroon, Chad, Central African Republic, Colombia, Congo, Croatia, Cuba, Ethiopia, France, Georgia, Ghana, Greece, Haiti, Herzegovina, India, Indonesia, Iran, Iraq, Israel (including Gaza & West Bank), Ivory Coast, Japan, Jordan, Kazakhstan, Kuwait, Laos, Lebanon, Liberia, Libya, Macedonia, Madagascar, Mongolia, Morocco, Mozambique, Nepal, New Guinea, Nigeria, North Korea, Pakistan, Panama, Papua New Guinea, Poland, Rwanda, Saudi Arabia, Senegal, Serbian and Montenegro, Sierra Leone, Solomon Islands, Somalia, Sri Lanka,Sudan, Swaziland, Switzerland, Syria, Tajikistan, Tanzania, Thailand, Togo, Tonga,Tunisia, Turkmenistan, Uganda, United Arab Emirates, Upper Volta, Uruguay, Uzbekistan, Venezuela, Vietnam, Western Sahara, Yemen, Yugoslavia, Zaire, Zambia
If your country is not on this list, then we can most likely help you.
(disclaimer: Underwriting guidelines change frequently - we'll try to keep this list updated as frequently as possible)
At RootFin.com we are an independent agency specializing in helping businesses insure their key people all over the world.
Our experience in helping non-us residents and foreign nationals is second to none and we'd appreciate the opportunity to earn your business.