Foreign Nationals

Many people look for life insurance for foreigners. First of all, getting life insurance for non US residents is a real possibility, and in this article we will explore everything you need to know about getting life insurance in the U.S..

Who Can Get Life Insurance?

Foreigners can get life insurance in the U.S. if they meet specific requirements. Who is considered a foreigner? A foreigner is someone that doesn’t reside in the U.S. and is a citizen from a different country.

Furthermore, for life insurance purposes, there are two types of foreigners, ones with financial ties to the U.S. and ones without. A foreigner is considered to have financial ties if they have:

• Real Estate in the U.S.
• Assets in the U.S.
• A Company in the U.S.

With financial ties, your options to get life insurance are much better.

More companies will want to insure you and give you a better rating. If you do not have financial ties, your options will be minimal, and very often, you will not be able to get life insurance.

What Type of Life Insurance?

The basic types of life insurance are Term, Whole Life, and Universal. Your country of citizenship and residence will determine the type of insurance that you will be able to purchase in the U.S. In general; it is easier to get permanent life insurance than term insurance.

Let’s say you know you cannot get Term insurance. Then a fantastic trick is using Universal Life Insurance and making the guaranteed period the same as the Term you are looking for. Hence, you will essentially have Term insurance on a Universal Life.

Where Can I Get Life Insurance?

Your country of residence will determine the type, rating, and price of life insurance. As you can find on our home page, we listed the Country Classification. This is a compilation of multiple life insurance companies and how they rate countries:

A rating- All your options will be open in an A country, and you will have all the best ratings available and all types of life insurance.

B rating– In a B country, most of the companies will not give you the highest health rating. However, you still will be able to get Term and permanent life.

C rating– If you reside in a C country, you will have more restrictions on health ratings. As a result, you can only get permanent coverage (Universal and Whole Life).

“A” Roots:

Andorra, Australia, Austria, Barbados, Belgium, Bermuda, British Virgin Islands, Canada, Cayman Islands, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel (excluding West Bank), Gaza & Golan Heights, Italy, Japan, Korean, Liechtenstein, Luxembourg, Macau, Malta, Monaco, Netherlands, New Zealand, Norway, Qatar, San Marino, Singapore, Slovak Republic (Slovakia), Slovenia, Spain, Sweden, Switzerland, Taiwan, United Arab Emirates, United Kingdom.

“B” Countries:

Albania, Anguilla, Antigua & Barbuda, Argentina, Bahamas, Bosnia & Herzegovina, Brazil, Brunei Darussalam, Bulgaria, Canary Islands, Chile, China (Urban), Colombia, Costa Rica, Croatia, Dominica, Estonia, French Polynesia, Guadeloupe, Kuwait, Latvia, Lithuania, Macedonia, Malaysia, Martinique, Mauritius, Mexico, Montenegro, Oman, Panama, Romania, Seychelles, Turks and Caicos, Uruguay.

“C” Countries:

Armenia, Belarus, Belize, China (Rural), Cook Islands, Dominican Republic, Ecuador, El Salvador, Grenada, Jamaica, Kazakhstan, Maldives, Micronesia, New Caledonia, Northern Mariana Islands, Palau, Paraguay, Russia, Samoa, Saudi Arabia, Serbia, South Africa, Sri Lanka, St. Kitts and Nevis, St. Lucia, St. Vincent & The Grenadines, Tonga, Trinidad & Tobago, Turkey, Venezuela, Vietnam.

If your country is not on this list, it will be very hard for you to get life insurance in the United States. Yet there are still options to get life insurance, but it will not be through a U.S. based carrier.

When Can I Get Life Insurance?

In order for you to apply for life insurance in the U.S., you will need to do all of the processes in the United States:
– Take a medical in the U.S.
– Sign all paperwork in the U.S.
– Sign all delivery requirements in the U.S.
If you are planning a trip to the United States, make sure you schedule everything ahead of time, because the process will take between 4 to 8 weeks.

What Do I Need To Apply For Life Insurance?

The process of applying for life insurance for foreigners is identical to U.S. citizens. As we mentioned, all of the processes will need to be done while you are in the U.S., and you will need to provide more paperwork. Here are the steps to help you:
1. Define how much insurance you need
2. Get an expert quote
3. Decide the best company for you
4. Sign applications
5. Take a medical exam: your agent will schedule a blood and urine test.
6. Submit all necessary documentation
– W8
– Medical records translated
– Proof of Assets (Bank Statement, Property Deed)
7. Wait 4-8 weeks
8. Sign the delivery requirements
After this, you will be protected, and you will have life insurance. The life insurance will pay your beneficiaries even if you go back to your country.

Best Companies to Get Life Insurance For Foreigners

Over the years, we have helped many foreigners get life insurance in the U.S., and there are a few carriers that look more favorably on foreign nationals. Here is our list of the top three companies:

1. Prudential
2. MetLife
3. American General

The Bottom Line

As you can see, it is possible to get life insurance for foreigners in the U.S. There are many variables to consider when you get life insurance for foreigners; as a result, you need to make sure you are working with an expert.
Feel free to comment or contact us or leave us a comment.

Citizens Life Insurance Review

First of all, in this article you will find our Citizens Life insurance review, and why you should get quotes with other companies as well. We have no affiliation with Citizens Life, this a third party review.

Purchasing life insurance is easier said than done, due in large part to the many companies that sell various types of policies. While a variety of choices can cloud the water, it can also point you in the right direction if you take your time.

Citizens is an insurance holding company that has been providing US customers with coverage since 1969. Furthermore, it has been offering international policies since 1975.

If you aren’t familiar with the Citizens name, it may be because the company has several insurance subsidiaries:

• CICA Life Insurance Company of America (“CICA LIFE”),
• Citizens National Life Insurance Company (“CNLIC”)
• Security Plan Life Insurance Company (“SPLIC”)
• Security Plan Fire Insurance Company (“SPFIC”)

Citizens is anything but a small insurance company, with it holding approximately $1.4 billion in assets at the close of 2015. Along with this, it has roughly $4.5 billion of insurance policies in force.

Benefits of Citizens

There are many benefits of turning to Citizens for life insurance coverage, including but not limited to the following:

• A well known brand both among US and international buyers.
• A history of acquisitions, proving that the company is interested in expansion. Top acquisitions have included Magnolia Guaranty Life Insurance Company, Integrity Capital Corporation, Ozark National Life Insurance Company, Security Plan Life Insurance Company, and Combined Underwriters Life Insurance Company
• A focus on providing policies to all types of consumers.
• Specializes in foreign citizens

Point number three is among the most important. The company makes it clear that it has whole life insurance products for “high net worth, high income foreign residents.”

Furthermore, it also offers “whole life insurance policies to middle income households concentrated in the Midwest and southern United States through independent marketing consultants.”

Note: Citizens also sells final expense insurance to consumers in Arkansas, Louisiana, and Mississippi.

Downfalls of Citizens

While there are some benefits of turning to Citizens for whole life insurance, many have found that there are too many downfalls to overlook.

To start, the company’s independent marketing consultants are only located in certain parts of the country. This makes it difficult for a large number of consumers to do business with the company.

Along with this, it does not have the best reviews or ratings, when compared to highly reputable life insurance companies. For example, Seeking Alpha calls Citizens a “low-quality life insurance company trading at sky-high valuations.”

While this has a lot to do with the company’s stock price, it goes a long way in showing what outsiders think about the quality of Citizens as a whole.

Here are some other points that have been raised in regards to the company’s business model:

• It sells life insurance policies overseas without a physical presence, which involves some gray area in regards to the legality.
• Foreign insurance regulators could eventually crack down on the company, which could lead to its demise.

If you are interested in reading their annual report here is a link for you: https://www.citizensinc.com/pdfhtml/Citizens_2015_Annual_Report.pdf

However, for foreigners looking for life insurance in the United States, we would recommend to get multiple quotes. Many high rated insurance companies will insure non-U.S. citizens. However, if you do not have financial ties to the U.S. then it may a difficult. Just to name a few of these insurance companies:

• MetLife
• Prudential
• Transamerica
• AIG

Any of the previous companies could provide a more secure bet for life insurance. Despite the fact that Citizens has more than $4 billion of insurance policies in force, the company is seen as a big risk.

Conclusion

Finally, there is no denying the fact that Citizens has made a name for itself in the U.S. However their expertise is in international life insurance markets.

Unfortunately, negative ratings and reviews aren’t doing the company any favors. From a consumer perspective, there are better life insurance companies out there.

If you do not have financial links to the U.S. and you still want to get life insurance, then you might want to look into Citizens.

What is your review for Citizens Life?

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In this article we will go over 5 common mistakes you want to avoid when getting life insurance for foreign nationals. A mistake can be very costly because not only it can cost you money, but also it can cost you getting denied for life insurance. 

Life Insurance for Foreign Nationals

First of all, you may get life insurance for foreign nationals in the U.S. if there is a need for it. People that have a financial need in the United States can get life insurance. So here we provide you with a few examples of what determines financial need in the U.S.:

• Properties in the U.S.
• Investments in the U.S.
• Dependents in the U.S.

Determining if you need the life insurance is a different topic altogether. So let’s assume you need the life insurance and you are able to get it.

Our goal in this article is to help you avoid mistakes that can cost you in the long run:

1- Taking Any Company

There isn’t one company that will be the best for every situation. Obviously, you want to make sure you get the best price possible with the best company, but every company is different.

First of all, your price and rating will be based on your country of citizenship and residence. Also life insurance companies treat every country differently, so you need to request quotes from multiple companies to get the best price. When you get quotes, you will see that companies will offer you very different prices. In addition the insurance companies may restrict what type of life insurance they will offer to you.  

2- Not Having All Paperwork Ready

In general life insurance companies are scared of risk. They also want to make sure that they don’t give life insurance to someone that has a high risk without them knowing it. That is the reason why they will request a lot of paperwork, so you have to be prepared from the beginning. Here is a list of documents you will need to provide:

• Property deeds in the U.S.
• Bank statements in the U.S.
• Investment statements
• Translated medical records from your country
• W8 form
• Copy of passport and visa

There may be more documents that you will need to submit, so be ready to communicate with your agent. Not having all the necessary documents will slow down the process. 

3- Not Having Enough Time

You need to make sure you will have enough time while you are in the United States to finish all of the process. So be careful because getting life insurance takes about 4 weeks to get approved. Following our previous step should help you, and it will speed up the process.

We have helped foreign nationals in less than 3 weeks, but that is an exception not the rule. Also, we have seen clients that do not make a quick enough decision and are not able to get life insurance before they leave.

4- Term Is Not Possible

In general getting permanent insurance (Whole Life and Universal) is much easier for a foreign national, and getting Term insurance is harder. However, it is still possible to get Term insurance, if you apply with the right company.

In addition, if you can’t get Term insurance because of your country of citizenship/residence, then you can always use a Universal Life. This is a “trick” we have used in the past. The way a universal life policy works is it gives you a guaranteed period where your life insurance will not go up in price. Most of the time this guaranteed period is until age 95 or 100, however you can drop this guaranteed period to any age. So if you want a 20 year Term, then we can use a universal that has a 20 year guaranteed period, and it will work just like the Term insurance.

5- Using Any Agent

For U.S. citizen’s getting life insurance is very easy, and there are many great agencies that can help. However, getting life insurance for foreign nationals is much more complex, so you need to work with an expert. There are so many variables that will determine the best price and coverage (country of citizenship, country of residence, visa status, connections to the U.S., etc.). Therefore having experts will mean getting the best price for you or not getting life insurance at all.

Also, in order for you to get the best life insurance, you will need to work with a broker that has access to multiple carriers. 

Final Word

All of our listed mistakes happen because of lack of time, documentation, or knowledge from your life insurance agent. Prepare properly by avoiding common mistakes and you will increase your chances of getting life insurance. Also, to increase your chances make sure you work with experts if you want to get the best life insurance. 

Most non U.S citizens do not know that they can purchase whole life insurance. In the next article you will find everything about whole life insurance for non U.S. citizens. Actually, most life insurance agents do not know what companies offer whole life insurance for non US Citizens. That is why you need to make sure you work with an expert. 

First of all, let’s go over why whole life insurance may fit your situation. The main differences between whole life insurance and other types of insurance are the guarantees:

1. Death benefit is guaranteed
2. Cash Value has a base guaranteed rate
3. Level premium guarantee (payment). Your payments will never go up in price.
4. Easy access to cash value even when you are older.
5. The cost of insurance does not go up. So your cash and death benefit always go up.

In the long run all these features will make whole life insurance the best option for life insurance. It is a very safe and predictable type of life insurance that will be in-force the day you die. In the end, there are many other reasons and strategies to utilize whole life insurance.

Companies With Whole Life For Non US Citizens

There are companies out there that will allow whole life insurance for non US citizens, and the quality of the insurance policies can be fantastic. Some companies will have more death benefit for cheaper price, some may have better cash accumulations. When purchasing whole life insurance as a non U.S. citizen or non U.S. resident, you will have to know what is more important to you. Here is a list to help you. Rate the following according to how important they are to you:

• Death Benefit
• Company Strength
• Cash Value growth
• Company track history
• Current interest rates or dividends
• If you want to access the cash, you will want to know how the policy performs on distributions
• How quickly the cash value grows

Depending on how your rank these factors, some companies will rank higher than others. All these factors will vary by company, but there are only a hand full of great insurance companies for non U.S citizens. The good news for you is that these companies are among the best even for U.S. citizens.

Here are two great companies that may offer whole life insurance to non U.S. citizens:

• MetLife

• MassMutual

Both highly rated, and they have fantastic whole life insurance products. You probably have heard from one of these in the past.

What restrictions exist on life insurance for non U.S. citizens?

We do have to let you know that some restrictions will apply for non citizens. Here is a list of things that will affect your rating:

Country of Citizenship

Depending on what country you are a citizen from, it may be more difficult to get life insurance. The most political unstable countries are the hardest to insure. 

Health ratings

If you have significant health risks, it may be more difficult than if you where a US citizen to get life insurance.  

Immigration status

The longer you stay the easier in the US the easier it is to get life insurance if you are not a citizen. Although as a foreign national there are a few different rules that will apply, and it can be done without a problem.

The good news is that because there are so many variables the best way to find out if you get life insurance is to apply. Make sure you apply with an insurance company that has approved someone with a situation that is similar to yours, and that’s where we come in. Contact us to request a quote and one of our experts will help you.  

Whole life insurance for foreign nationals

Also, if you do not live in the U.S. (and you are considered a foreign national) you can still get whole life insurance. You will need to provide your agent with more paperwork to prove why you need the insurance. However, a common way to utilize whole life is to protect a property or for estate planning for non U.S. citizens, or a business or investment that you have made in the US. You have to be very careful with estate planning if you are a foreign national, because you might end up paying close to 40% of your assets to the government if you die. We will let you know everything you need to provide to get the best rating.  

A few examples of life insurance for non U.S citizens

• We found an A+ rated life insurance company that pays a dividend of more than 7% that will insurance most non U.S. citizens. The dividend helps the death benefit and cash value grow very quickly.  
• Also for higher risk cases, we found A+ rated companies that will insurance citizens from most countries.  
• We have been able to provide whole life insurance for non US citizens even without a social security on some cases.  
• Limited pay insurance for non Citizens or foreign nationals where you will only have to pay the premium for 10 years or 20 years, and keep the policy for ever.  

Our main area of expertise is with non U.S citizens and foreign nationals. We will help you to make sure you get the best chance for the best rating possible, with the best the life insurance companies out there.

Contact us with your questions and if you would like a quote. Click the following link if you would like to get a whole life insurance quote online. Fantastic tool to get instant quotes, however you need to make sure these quotes apply for you.  

Updated April 6th, 2017

First of all, most people think of life insurance as “death insurance”, but the truth is that life insurance can be used as an asset, in particular we are talking about permanent insurance (Universal or Whole Life).

Now, in the case of Foreign Nationals (people that are not considered residents of the U.S.), using a life insurance as an assets may even be more beneficial because of the tax benefits of the life insurance.
So if you would like more information on how to save money, grow your assets and utilize life insurance as an asset, just contact us.

Estate Taxes for Foreign Nationals

If you are a Foreign National you could end up paying up to 39% of your assets in the United States to the IRS when you pass away. The IRS will want their money in 90 days, which may force you to liquidate some assets at a very inopportune time. These rules are very complex, so talk to your accountant to find out which assets are included and how much you could en up paying in taxes.

Life Insurance for Foreign Nationals as an Asset

Permanent life insurance could be utilized as an asset. The way Permanent life insurance works is you not only have the death benefit, but you have a cash value portion that grows predictably, and this cash could be accessed at any time.
A good permanent life insurance could give you a rate of return between 4-5% tax free on your cash value (in the long run), and the death benefit protection.

Life insurance vs Other Investment

Here is a hypothetical scenario where two identical Foreign Nationals will utilize different strategies.

Client A: 45 year old male foreign national purchased life insurance and contributes 20,000/yr .
Client B: 45 year old male foreign national purchased an investment account and contributes 20,000/yr .

What would happen at death?

Client A: He has a tax free death benefit of $1,300,000 (multiple companies would offer this) if something where to happen to him.
Client B: His balance will go to his beneficiaries and they will have to pay estate taxes.

They invest for 10 years and die:

1. Client A: Family will receive $1,300,000
2. Client B: Family will receive the current balance of the account. Lets say he had a fantastic investment and did$350,000. and have to pay estate taxes. Let’s assume they have to pay 30% above $60,000. That would leave the family with $203,000.

This would be a $950,000 difference.

They invest for 20 yrs and die:

1. Client A: Family will receive $1,600,000
2. Client B: Family will receive the current balance of the account. Lets say he had a fantastic investment and did $1,000,000. and have to pay estate taxes. Let’s assume they have to pay 30% above $60,000. That would leave the family with $658,000.

It would be a $942,000 difference.

They invest for 35 yrs and die:

1. Client A: Family will receive $2,700,000
2. Client B: Family will receive the current balance of the account. Lets say he had a fantastic investment and did $3,700,000. and have to pay estate taxes. Let’s assume they have to pay 39% above $60,000 (now they need to pay more). That would leave the family with $2,220,400.

It would be a $479,600 difference.

You can access the Cash Value on the Policy

Finally, the cash value portion of the policy could be accessed at any time, and it will grow approximately between 4-5% in the long run (at current rates which may vary at any time).

In reality, this makes permanent life insurance a great conservative investment, with fantastic liquidity. One of the drawbacks however is that in the first few years, the policy will not build much cash, so you have to be aware of this down side.

If you would like to see how the cash grows please contact us for a quote.

Leave us a comment if you have any questions!