We Go There And They Come Here!

I’m considering Lasik surgery and as with all things medical in the US I was kind of ticked off when I saw the prices and then, how unpatriotic of me, compared them to a vacation to Costa Rica that happened to include the same medical procedure at a state of the art facility there.

I got over my brush with unpatriotism rather quickly when I thought about all of the ex patriots and foreign nationals who look for the opportunity to buy life insurance from a US based company. Hey, a trade deal is a trade deal, right? The truth is that Mexico, some of Central America and South America, and the Caribbean have been looking for ways to buy US life insurance. The US life insurance companies and state commissions have, in true allegiance to the American way, figured out ways to make that difficult, even impossible, for the best candidates. By showing fear of even the least of the mortality risks and true terror of the possibility of money laundering, life insurance agents now have to take annual continuing education in those areas. While we get the same old tired information each year, those abroad who want to jack with our system can take the same on line courses and see exactly how to avoid detection.

But there is a large contingent of people mostly wanting business life insurance or coming from high net worth families that come from countries that simply don’t offer the products for their needs. One of the questions for those outside the US who want to buy life insurance here is always “what is the reason for buying it here versus at home?” While price is almost always a consideration because no country has a larger insured population and therefore more protection in the law of large numbers, product availability is often the answer. What is taken for granted as guaranteed in the US is often not guaranteed in their home countries. A simple 20 year term life insurance policy is guaranteed level for 20 years here and may only be guaranteed for 10 with the option for another 10 years of non guaranteed pricing in St Maarten or Jamaica for instance.

So to the process. Like all policies sold by US companies an exam and application completed in the US is required. With some of the carriers they require a return trip to “accept” (sign for) the policy, but we do have a few major life insurance companies that have waived that requirement. Most of the companies require some solid ties to the US such as business or investment or real estate, but a few carriers have waived that need for high net worth and business life insurance clients. Once the policy is in force it will need to be paid from a US checking account or in some cases wire transfers can be arranged.

Bottom line. Foreign national life insurance is likely to follow the mood of the world, so what is true today may not necessarily be true 12 months from now. If you have questions about your particular situation or need quotes on business or high net worth foreign national life insurance, call or email me directly. My name is Ed Hinerman. Let’s talk.