The U.S. has long been a desirable location for monetary safety, whether it’s foreign governments buying our stocks and bonds, or individuals wanting the stability of the our economy. After many false starts by others, a U.S. based life insurer has now set up a straightforward method for non-U.S. citizens to take advantage of the lower costs of buying U.S. life insurance.
Until now, this service has been marketed to South and Central America as well as the Far East. They have decided to expand their horizons to non- EU Europe and Israel.
Clients in good health can see likely see significant drops in their premium payments versus policies purchased locally. Of course things like current age, health, and the amount of insurance wanted all have an impact on the price, as they do in every country. Irwin Lowi, a representative of the company, explains how it works:
How would a company here in the U.S. handle the application process?
Like any other application, it must be done on U.S. soil, and include whatever medical tests are needed by an authorized vendor of the company here. Sometimes additional information is needed, such as physician statements. These can be translated from other languages if necessary, and then submitted.
Underwriters then review the information, determine a client’s health rating, and issue a policy.
How is this paid for?
Unlike in years past, a business presence is no longer needed in the U.S. As long as the client has a legal U.S. banking account, they can acquire a life insurance policy.
Why would someone from Israel want to buy a dollar-based policy?
The first question should be, why do they want a policy at all? Protecting loved ones from an untimely death is the reason for most coverage.
Other people want a “portable” asset that an unstable regime can’t access. Life Insurance policies were sold for decades in Europe to help people cope with government instability.
Some insurance is bought because people are investing in a construction project on foreign soil. If the developer were to suddenly die, the project would be severely impacted. A policy protects those investors.
Additionally, foreign insurance companies can sometimes hold up payments for reason that aren’t always clear. Policies in the United States are often considered more reliable.
The final reason is that US-based policies are often more affordable: The cost of insurance drops based on the total number of lives insured. Smaller countries don’t have a client base large enough to spread the risk, and must increase their premiums accordingly. The US, having a large population, is able to spread the risk across more people and reduce their costs as a result.
What does the process typically look like?
The company first collects some preliminary information, such as health, age, and amount of coverage wanted in the policy.
The client then gets a preliminary quote, and then comes to the US to do a blood test. After the results of the test are delivered, the policy can be issued.