Life insurance for foreign nationals

Depending on the circumstances, the answer can be yes – both foreign nationals and non-resident foreign nationals may be able to get life insurance in the US depending on their residency status, visa situation, and ties to the US:

• Foreign nationals that have permanent legal resident status in the US (i.e., green card holders) can usually qualify for the same kinds of life insurance coverage as US citizens as long as they have been in the country for at least two years.

• Non-permanent residents with a work, employer-sponsored immigration, or fiancée visa (such as E, H1B, K, L, O, TN, or TD visas) can, in many cases, find coverage depending on their specific situation. However, they will likely have to shop around for a policy and can expect carriers to require additional documentation and assessments before approving their application.

• Certain high-net-worth, non-resident, non-US citizens may also qualify for life insurance from a US carrier if they have substantial US-based assets and/or family members. Guardian’s Global Citizens program is one of a handful of programs that focuses on addressing the unique needs of these international clients.

Relatively few carriers have programs to provide US-based life insurance to non-resident foreign nationals and qualification criteria vary. That makes it difficult to make any general observations about requirements other than the fact that insurers look for significant economic and/or family ties in the US.

Guardian’s Global Citizens is one such program specifically designed for high-net-worth foreign nationals who reside outside the United States but have demonstrated financial connections, holdings, and/or family ties in the US. To be considered for approval, applicants must:

• Have at least $250,000 in a US-chartered bank for at least 6 months, OR

• Own residential or commercial property in the US, OR

• Own an interest in or equity in a US-based business, OR

• Have immediate family members who are US citizens

The benefits and drawbacks of US life insurance vary depending on the situation of the person getting coverage and their reasons for doing so. For example, if the foreign national is a permanent US resident, the reasons for and against getting life insurance are essentially the same as for any other US resident. The primary benefit of coverage is that a life insurance payout can help protect a family’s financial well-being by providing several years of income replacement that the deceased could have otherwise provided. Certain types of policies – whole and universal life insurance – can also be used to help build and transfer family wealth, among other things. In such cases, the main “drawback” is the fact that coverage comes at a cost that might not fit every person’s budget.

On the other hand, high-net worth non-residents with family members and assets in the US face an entirely different set of challenges. Many of these international citizens have business interests in multiple countries but see the US as a favorable jurisdiction for family assets due to strong property rights and a historically stable currency. However, there can be significant taxation issues in transferring those assets to the next generation. Permanent cash value life insurance – and especially whole life insurance – can be a powerful tool to help overcome these challenges:

• The estate tax disparity
  While US residents enjoy a federal estate tax exemption of $13,610,000 (2024), the exemption for non-residents is limited to just $60,000. Non-resident life insurance can help bridge this disparity, because death benefit payments are generally exempt from federal estate taxes. This feature makes life insurance an attractive investment and wealth-transfer vehicle for many foreign nationals with US-based assets.

• Covering potential estate taxes
  The US government imposes estate taxes on worldwide assets for US citizens and on US-situated assets for non-residents. US-denominated life insurance can provide the liquidity needed to cover potential estate taxes without having to sell all or a portion of these holdings, preserving the estate's value for heirs.

Whole life insurance can also aid portfolio diversification: these policies build cash value at a guaranteed rate and are among the lowest risk financial products available. A policy can build US-denominated assets that can be accessed while the policyholder is still alive, acting as an effective hedge against economic downturns in one's home country, fluctuating exchange rates, and other forms of geopolitical risk. And because life insurance policies are generally protected from creditors and bankruptcy, they can provide an additional layer of protection for foreign nationals' assets.

Non-resident foreign nationals typically have limited access to US life insurance, in part because it is difficult for a US insurance company to underwrite and assess the risk involved in providing life insurance to someone who lives in another country that, among other factors, may not be politically stable or have adequate health care.

However, those with significant US assets and family ties may find providers willing to underwrite coverage, depending on their specific situation. Some offer term life insurance policies that can provide temporary financial protection; however, a permanent whole or universal life insurance policy may be a better fit: it provides life-long protection with cash value that can build family assets and other features that can help transfer wealth in a tax-efficient manner to relatives in the US. Guardian's Global Citizens program provides highly customized whole life insurance policies that help these international clients maintain, build, and transfer family assets in the US.

Guardian’s Global Citizens program is tailored for non-US citizens who reside in key countries outside the US. Permanent, cash value life insurance policies up to a maximum of $30 million may be available to those who meet the following criteria:

• A significant financial connection to the US For example, real estate or business ownership, equities, or other tangible and non-tangible assets, or direct family members who are US citizens

• Maximum coverage will be based on assets held in the US

• The application must be completed and signed in the US

• Other terms and conditions apply Additional items, documents, and records will be required during the application process

When you have business interests, real estate holdings, and family members in multiple countries, including the United States, your personal financial needs can be a challenge. Guardian’s Global Citizens program was created to provide specialized life insurance solutions and services designed to meet the unique demands of high-net-worth international clients. Our Global Citizens Program allows qualifying clients to tap into a dedicated team that specializes in the more complex financial protection needs of clients with multinational interests – and provides white-glove service with the backing of one of the world's largest mutual life insurance companies. A dedicated case concierge team is assigned to help each applicant, and submissions are evaluated by specialized underwriters. Other amenities include a complimentary US trust review, translation services, law firm referrals, and more. Guardian has an international in-force block of business of $3.5B covering 128 countries, and our financial strength is recognized by numerous rating companies, with a Comdex (composite financial ranking) score of 99 out of 100.*