Many Non US residents are looking to get a life insurance policy in the U.S. for many different reasons. Some of the advantages of life insurance for Non US residents are:
- Leverage the U.S. dollar
- Better credit rating of U.S. based companies
- Better life insurance options
The great news is that it is possible to get a life insurance policy for you.
7 Tips to Get Life Insurance for Non US Residents
In this article we will show you some tips on how to get life insurance for non U.S. residents. These are tips that we have learned through out the years of helping non-U.S. residents purchase life insurance.
1- Not All Companies Are Equal
All companies view your country of citizenship and residence to determine your ratings in the U.S. And life insurance companies have four country classifications: A, B, C, and D. This country classification is what determines the price and what type of life insurance you will be allowed to get in the US. Because every company is different you want to make sure you apply with the right life insurance company that will give you the most favorable rating.
2- Have All Your Documents
Applying for life insurance can be a hassle, so have all your documents ready with copies of everything. I cannot stress how important this is. The more you provide your agent, the more chances you have of getting a good life insurance policy.
Here is a handy list of documents that you should provide:
Visa, Passport, Medical Records, Property Deeds in the U.S., Bank Statements, Investment Statements.
2- Time Frame Is Critical
If you are coming to the U.S. to get life insurance, make sure you have enough time to finish the whole process in the U.S. Life insurance companies will require for you to be in the U.S. through out the whole process of application, underwriting and delivery. Prepare ahead of schedule so you have everything ready once you get to the United States.
Let’s say you only have a few weeks to finish the process, then what we have done in the past is apply with two insurance company in hopes that one finishes the underwriting before the client leaves.
3- Disclose If You Have Multiple Passports
Life insurance companies view all countries differently, so having two passports can be a huge advantage for some people. Make sure you disclose this fact to your agent. In addition, most life insurance agents will not think to ask you for multiple passports, and it can mean getting life insurance or not.
4- Be Patient after Applying
Life Insurance companies may ask for more information than you originally thought, so just be ready to provide more documents and be patient. At the same time, your agent should be aware of what is your time frame to stay in the United States, and that they communicate this time frame to the life insurance company. In general, the whole process takes between 4-6 weeks.
5- Transfer Assets to the U.S.
If you are planning ahead and have enough time, then having more assets in the U.S. will benefit you. If it is possible, before you apply for life insurance, transfer money to a U.S. based bank account or an investment account.
6- Establish a U.S. Based Trust
This tip may or may not apply to everyone. However, creating a U.S. based trust can be a great way of gaining access to life insurance that before you might not have been able to get. You may not be considered a “U.S. person”, but a trust is. Also, a trust will have a tax id that may help if you do not have a social security number.
7- No Social Security? Complete a W8 form
No problem, most likely you will need to provide a W8 form to the life insurance company. A W8 form is used by a non resident or foreign national to declare that they work outside of the United States.
https://www.irs.gov/pub/irs-pdf/fw8ben.pdf
Final Word
Preparing properly before you take a life insurance for a non U.S. resident is crucial. Follow our tips and you will improve your changes of getting the best life insurance for you and your family.
For Agents
This section is designed for life insurance agents that are looking to help some of their clients get life insurance for non US residents. Actually we get calls from agents every day asking for information on how to do it. The reality is that there a many variables to consider, but we will list 3 companies that are fantastic with non-U.S. residents.
1- Prudential
The best life insurance company for non residents. They have great guidelines for many different countries, and their underwriting is not too strict. One of the downsides is that you will not be able to get a whole life insurance with them.
2- MetLife
MetLife is a name that everyone recognizes around the world. Also, they are a fantastic company for non-U.S. residents and foreign nationals. Their products include Term, Universal and Whole Life insurance.
3- Transamerica
Transamerica used to be the leader in the foreign national market. However, they have tightened up their guidelines for B and C countries.
Contact us if you need help in a case.
