Life Insurance for the Non-Citizen Hispanic population

[walthamny]

SO that you know if you are non resident and die, your estate tax exemption is 60k. SO when you sell a 500k term, they are paying nearly 40% in estate taxes. Now IRS is not that smart and lot of people avoid paying it, how can IRS track down non residents estate taxes. Usually when you sell to US residents, you dont have to worry about estate taxes.

 

[Jessica Durphy]

SO that you know if you are non resident and die, your estate tax exemption is 60k. SO when you sell a 500k term, they are paying nearly 40% in estate taxes. Now IRS is not that smart and lot of people avoid paying it, how can IRS track down non residents estate taxes. Usually when you sell to US residents, you dont have to worry about estate taxes.

Cool information!

 

[myinsurebiz]

Does anyone know of a carrier that will cater to the non-citizen Hispanic market... ?
I see this as a hugely underserved population. After having 2 successful agents with the personal and commercial lines ~ I'd love to able to assist these customers with life insurance as well. Is there anything out there?

Be wary of Charge Backs.

I would go As Earned on these cases.

 

[Jessica Durphy]

Be wary of Charge Backs.

I would go As Earned on these cases.

I totally understand that. Good advice!

I will say, the folks that we tend to deal with, regarding their Commercial and Auto insurance, have been faithful and loyal! coming in each month to pay their bill with a Money Order or Debit card.

 

[Jessica Durphy]

Manhattan/Family Life is good to go with non citizens as ling as they have TIN number. They not only have the VIVA simplified issue wl and term but also will accept them on their fully underwritten life and health products.

Thank you for the information. I reached out to these guys today!

 

[WinoBlues]

Be wary of Charge Backs.

I would go As Earned on these cases.

Different experience for me in general that is a pretty sticky group for me.

Very family centered. Especially the immigrant and first gen.

However, I think the majority are low income low skill labor. So it will be a while for income to stabilize.

IMohsoHO

 

[Jessica Durphy]

Different experience for me in general that is a pretty sticky group for me.

Very family centered. Especially the immigrant and first gen.

However, I think the majority are low income low skill labor. So it will be a while for income to stabilize.

IMohsoHO

That's my experience as well! they are a LOYAL group of people...

 

[Jessica Durphy]

Viva Life.

They have brochures in Spanish, only need an ITIN, and have a 4 health question app.

It's just for term and they only go to 250k, but it's a good option.

@Tahoe Ray I'm assuming, with your knowledge, that you have this carrier in your toolbelt? If so, could you message me privately or openly what your experience has been with them? How have they been with claims? Do you find this to be a niche that you have been successful with? Also, do you have any suggestions on a FMO that has access to this carrier?

 

[scagnt83]

SO that you know if you are non resident and die, your estate tax exemption is 60k. SO when you sell a 500k term, they are paying nearly 40% in estate taxes. Now IRS is not that smart and lot of people avoid paying it, how can IRS track down non residents estate taxes. Usually when you sell to US residents, you dont have to worry about estate taxes.

They use a Trust to avoid it. I think its a Qualified Domestic Trust.

 

[Allen Trent]

They use a Trust to avoid it. I think its a Qualified Domestic Trust.

QDT wont avoid it, it merely delays the estate tax so the surviving spouse doesnt owe it, but it is owed when the surviving spouse dies. Very few people dealing with estate taxes today are wanting to delay paying it, most are trying to file estate tax returns today while still alive to take advantage of the current $26-27M exemption before it reverts back to 2017 levels or worse at the end of 2025.

ILIT would help avoid the estate tax all together, but doubtful anyone buying small face non-citizen policies wants to have the added legal costs to create & annually gift the premiums to the ILIT so the ILIT trustee can pay it.

Might be better to have the spouse or children be the owner of the term life to avoid the insured being the owner & potential estate tax on anything over $60k as non citizens. Just need to make sure the owner is the beneficiary as you would create another estate/gift tax issue if owner,insured & beneficiary are all different parties ( goodman triangle unholy trinity)