The global client desires U.S. life insurance. The reasons are many. Among them:
- The U.S. offers political and economic stability
- A broad range of financial products
- Financial strength of carriers
- Denomination in U.S. dollars
- Competitive pricing and rates
- An effective regulatory environment
- High amounts of available coverage
- Favorable tax treatment of life insurance
Additionally, U.S. life insurance products are typically less expensive and contain fewer exclusions than foreign products. Perhaps most importantly, foreign nationals tend to trust U.S. carriers and the privacy these carriers offer. Not surprisingly, many want to move their assets to the U.S. and out of their countries of residence. The numbers of non- U.S. resident foreign nationals visiting the U.S. is staggering. In 2018, the U.S. issued over 9 million non-immigrant visas* to visitors investing, touring, and conducting business in the U.S. Yes, that is 9 million.
For non-U.S. residents who have invested in the U.S., life insurance is a must for protection against federal estate taxes. While the Tax Cuts and Jobs Act of 2017 essentially repealed the estate tax for virtually all Americans by increasing the lifetime exemption to over $11 million (at least until the sunset at the end of 2025), there was no relief for non-U.S. residents. The lifetime exemption remains at only $60,000. This means that any non-U.S. resident with U.S. assets in excess of $60,000 will likely face estate tax exposure and should buy life insurance if they want to ensure an efficient transition of assets to their heirs.
Global Atlantic Financial Group recognizes this opportunity and has designed a program specifically for foreign nationals. We understand the challenges that residents from foreign countries face when buying life insurance in the U.S., and our goal is to make the process as easy as possible for them.
Here are some of the things we’ve done to accomplish this goal:
- Translated Materials – Purchasing a policy in a second language can be challenging. We have translated certain marketing materials to Chinese and Spanish so that clients can more easily learn about our products and company in their native language. More languages to come!
- Removed Telephonic Inspection Requirement – Many life insurance companies hire vendors to call applicants to ask questions about finances, health and habits. These calls can be uncomfortable. We understand that foreign nationals highly value their privacy, and we have discontinued these calls for the majority of foreign national cases.
- Living Benefit Riders for China and Mexico – Our products offer riders with access to valuable benefits if a client suffers a critical, chronic or terminal illness. Some carriers do not offer these benefits to foreign nationals. We went in the opposite direction and expanded the availability of benefits to “B” countries, including China and Mexico. Not available for California applications.
- Limited Power of Attorney (LPOA) – We make it easy for clients who need to return to their home country before the policy is issued. An LPOA form is available to facilitate delivery of the policy in the event the foreign national is no longer in the U.S.
- Worldwide Assets Considered – Our program is designed for “High Net Worth” foreign nationals, so we require a $2 million net worth. However, the assets are not required to be in the U.S. We will consider assets anywhere in the world to meet this requirement and to justify the amount of insurance coverage sought.
- Innovative Approach to Case Review – Like other carriers, we have guidelines and requirements, including a list of qualifying “U.S. Connections.” But we recognize there are many great client profiles that may be overlooked when only a “check the box” rule is applied. As a result, we apply a multi-disciplinary approach that considers a variety of factors, and we continue to explore new ways of evaluating foreign resident applicants.
- Dedicated Underwriting Team – Foreign national cases are unique, and many carriers are not equipped to efficiently handle the nuances that arise. To provide a faster and smoother application process, Global Atlantic has a dedicated team of seasoned underwriters that handles only foreign national cases.
This is just the beginning. We have more great ideas and are constantly working with our distribution partners to improve the agent and client experience. As we strive to be a foreign national marketplace leader, we will continue to enhance the program.
If you have a foreign national client, consider Global Atlantic. Not only do we have a first-rate program and guidelines, but our Indexed Universal Life products are innovative and industry-leading. We have the products to meet your client’s needs, whether a low-cost death benefit, extended guarantee or strong cash accumulation.
Global Atlantic’s foreign national program is here to help you help the global client.
*Report of the Visa Office 2018.
D2157 (03-19) FOR PRODUCER INFORMATION AND REFERENCE ONLY. NOT FOR USE WITH THE PUBLIC.