Foreign nationals residing in the United States who have significant assets and wealth will in many instances choose to acquire a life insurance policy. As with US residents, foreign nationals are looking for better tax efficiency and ways to protect assets and an estate as a whole over the long term. As a risk based product, a life insurance policy is typically issued only after a complete and thorough risk assessment. A number of factors go into assessing the risk of an individual who is wishing to purchase term life or whole life insurance. This includes everything from satisfying underwriting guidelines such as driving history, health, age, and whether an individual is a foreign national or US citizen. Those with foreign national status should know that the requirements are typically more stringent as compared to what a US citizen might expect.
Tax Efficiency Related Challenges
Another distinction with regard to a foreign national life insurance policy being granted in the United States is that of insurability. One major concern of those who are not American citizens and who are living in the United States is that of tax exposure. Life insurance is an excellent asset protection tool for those with considerable wealth or a substantial estate. A non-US citizen is in most cases faced with unique US tax efficiency related challenges. This is especially true with regard to high-net-worth individuals and affluent families. Working with an experienced and knowledgeable life insurance advisor or estate planning expert can greatly improve tax efficiency for those who are not US citizens. For example, foreign nationals residing permanently in America will typically not have access to unlimited marital deductions.
Investors From Other Countries
This simply means that if a foreign national were to pass an estate to a non-citizen spouse that certain US estate taxes would be levied. In addition, when foreign nationals own various types of assets in America they can be subject to American estate tax liability. Equally of concern in this regard is the fact that only a small percentage of an estate (typically around $70,000) is exempt from estate taxes in the United States. This same set of circumstances is in effect for investors from other countries buying assets or real estate in the US.
How Can A Life Insurance Policy Help A Foreign National?
A quality life insurance policy that is carefully chosen can provide the necessary liquidity needed to better manage American estate taxes. It is a vital resource that can work in an integrated way within an established estate plan. Equally encouraging is the fact that a life insurance policy held by a foreign national in the United States will ultimately protect an individual from a forced sale because of over-burdensome tax liabilities. Basically, a non-US citizen can retain the value of an estate without the concern for having to liquidate assets as a way to satisfy a tax bill. Those wishing to protect their families, their heirs and future generations (while maintaining a non-US citizen status) will be better prepared to protect the standard of living of their surviving spouse with life insurance.
Protect Family Members
Finally, life insurance in Miami offers incredible flexibility when it comes to innovative and strategic estate planning for those with foreign national status. Life insurance is a cost-effective and easy way for nonresident aliens to protect assets, wealth, a legacy or an estate without the need for a trust or other type of commonly used legal entity. Non-US citizens wishing to avoid unnecessary estate erosion should consider the specifics outlined here as a way to secure wealth, protect family members and ensure that future generations will enjoy an estate. One that may have took decades or centuries to accumulate. Silver Rock Partners is comprised of a dedicated team of underwriting professionals who offer advisory services for those with foreign national status. Visit Silverrockpartners.com online today or speak in person or by phone with a qualified, licensed and experienced Miami insurance advisor for the affluent.