Cash Value Life Insurance for Non-U.S. Residents

 


Cash Value Life Insurance for Non-U.S. Residents

Cash value life insurance is often seen as a powerful tool for wealth planning, tax deferral, and legacy protection—especially for high-net-worth individuals.

But can non-U.S. residents access these benefits?

Yes—with the right structure and strategy, cash value life insurance can be an effective solution for foreign nationals looking to secure their wealth.

📌 Table of Contents

What Is Cash Value Life Insurance?

This type of life insurance combines a death benefit with a savings or investment component.

Part of the premiums paid accumulate as cash value, which grows tax-deferred and can be borrowed against.

Common types include whole life, universal life, and indexed universal life (IUL).

Can Non-U.S. Residents Purchase U.S. Policies?

Yes, many U.S. carriers offer life insurance to non-residents—especially those who meet certain net worth or visit criteria.

However, the applicant may be required to:

✔️ Visit the U.S. for underwriting

✔️ Provide translated financial documents

✔️ Work with international brokers or advisors familiar with cross-border compliance

Why Foreign Nationals Use Cash Value Insurance

✔️ U.S. life insurance is denominated in dollars—great for currency hedging

✔️ Tax-deferred growth on cash value

✔️ Asset protection features (varies by state and trust structure)

✔️ No forced heirship laws unlike in some civil law countries

✔️ Use for U.S.-based estate liquidity or business succession planning

Tax and Regulatory Considerations

✘ FATCA and CRS reporting may apply to both the insurer and policyholder

✘ The policy may be treated differently in your home jurisdiction (e.g., taxable annually in some countries)

✘ U.S. estate tax applies to U.S.-situated assets above $60,000—life insurance can help mitigate this

Structuring Tips and Best Practices

✔️ Use an Irrevocable Life Insurance Trust (ILIT) if you're investing from abroad

✔️ Avoid Modified Endowment Contracts (MECs) unless liquidity is not needed

✔️ Consider Private Placement Life Insurance (PPLI) if you're ultra-high-net-worth

✔️ Work with cross-border attorneys and wealth planners to ensure compliance with both U.S. and home country laws

🔗 Recommended Resources for Global Policyholders

— Prevent double taxation when managing global policies.

— Finance policies without liquidating international assets.

— Pair life insurance with charitable trust structures.

— Ultra-HNW solution for global tax deferral.

— Complement your policy with global asset protection.



Keywords: cash value life insurance, foreign national insurance, international estate planning, offshore policyholder, PPLI