Highland Capital Brokerage
Your Passport to the Foreign National Marketplace

The world has gotten much smaller over time. Advances in technology, modes of travel, and communication methods have made it much easier to do business around the world. While global wealth has continued to accelerate outside of the U.S., demand for access to U.S. markets remains high due to currency and political stability, privacy, regulated markets, and growth opportunities. International clients with a presence in the U.S. are exposed to unique financial planning considerations which life insurance is uniquely positioned to address.

Who’s a Foreign National? Depends on who you ask! 

In general, U.S. life insurance carriers consider non-U.S. citizens or Foreign Nationals to be someone who does not possess a Green Card or pass the substantial presence test who live, work, invest and do business in the U.S. The substantial presence test is met by residing in the U.S. for more than 31 days in a current calendar year and residing in the U.S. for more than 183 days over a three-year period*, including the current year. If an individual meets these criteria, they would be considered a U.S. Resident Alien.

An individual may have many reasons to avoid qualifying as a U.S. Resident Alien under the substantial presence test or to acquire a Green Card. Chief among these include a change in status for income taxes. As a U.S. Resident Alien, an individual’s income is generally subject to tax in the same manner as a U.S. citizen as all interest, dividends, wages and other forms for compensation including rental income and royalties must be reported on a U.S. tax return. This includes amounts earned both within and outside the U.S.

U.S. Life Insurance for Foreign Nationals

Insurance planning is an imperative and critical part of anyone’s financial plan. Partnering with the right specialist to implement appropriate solutions can make a world of difference.

For Foreign Nationals, access to U.S. life insurance provides significant advantages while addressing unique and specific needs critical to their financial interest in the U.S. Additional requirements, specific processes and procedures are critical to executing proper insurance placement for Foreign Nationals. We at Highland Capital Brokerage are here to help!

*The 183 day 3-year rule includes the current year and the 2 years immediately before that, counting all the days an individual is present in the current year, and 1/3 of the days present in the first year before the current year, and 1/6 of the days present in the second year before the current year.

Exceptions apply, see IRS – International Tax Payers Substantial Presence Test for additional details.

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© 2019 Highland Capital Brokerage. This page is intended for agents and representatives only and not to inform members of the general public. The information provided in the testimonials above may not be indicative of the experience of any end clients. The experiences and opinions are those of the financial professionals only. Securities by licensed Individuals may be offered through registered Broker/Dealers Investacorp, Inc. (IC) and Securities America, Inc. (SAI), members FINRA, SIPC. Advisory Services may be offered through SEC Registered Investment Advisers Investacorp Advisory Services, Inc. (IAS) and Securities America Advisors, Inc., (SAA). Highland Capital Brokerage, IC, IAS, SAI and SAA are affiliated subsidiaries of Ladenburg Thalmann Financial Services Inc. Not all of the individuals listed on this site are registered to offer securities products or advisory services through IC, IAS, SAI or SAA. IC, IAS, SAI or SAA do not offer tax or legal advice. This site is published for residents of the United States only. Registered Representatives and Investment Adviser Representatives of IC, IAS, SAI or SAA may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all of the products and services referenced on this site are available in every state and through every representative or adviser listed. For additional information, please contact compliance@highland.com. Doing business in California as Highland Annuity & Insurance Services.