The Value of U.S. Life Insurance for Foreign Nationals
William R. Izor,
May 2017

Affluent individuals, whether they reside in the United States or overseas, often have similar financial objectives. Among their chief considerations are how best to protect, grow and transfer their wealth; enhance their asset portfolio; limit their tax liability; and protect what matters most to them—their families, their businesses and their futures.

For American citizens, life insurance has long been a traditional vehicle for meeting those financial needs. What many foreign nationals do not realize is that, with the right plan structure, they can also benefit from U.S. life insurance products.

Provided that the affluent individual is not a U.S. citizen or resident, they are eligible for U.S. dollar denominated policies that are fully compliant with the applicable U.S. regulations and subject to privacy standards.*

The life insurance market in the United States is mature and generally offers better rates and higher quality products than are available overseas. This increases the value to foreign nationals who want to safeguard their financial security and peace of mind. 

Diversification into U.S. assets, and particularly life insurance, is also an excellent way to mitigate the impact of global economic and political turmoil on an individual’s personal financial situation. This type of integrated planning is often at the center of conversations about real estate and stocks, but it is equally relevant to life insurance. 

A best in class life insurance solution can offer flexible coverage that allows the policyholder to accumulate cash value, access that cash value though a selection of different withdrawal mechanisms, and at the same time ensure that, if they were to pass away, their family’s financial future will not be compromised. **

There is an old saying that you should not put all your eggs in one basket. For foreign nationals, U.S. life insurance products are the perfect “second basket.”

* Potential clients should be advised to consult with their tax advisors
**Insurance companies must check the insurance solicitation rules of the country of residence of the Foreign Nationals.

Author's Bio
William R. Izor,
CLU, ChFC, CFP, is Pan American Life Insurance Group's regional vice president - Pan-American Private Client Life. He is based in Dallas and can be reached via telephone at 817-995-7367. Email:

Leave a Comment