Wealthy non-U.S. citizens who have meaningful financial ties to the United States may have a need for life insurance to protect their financial interests. In this episode of Money Script Monday, Adam presents how to approach a new client demographic you may be overlooking that will help generate more business.

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Video transcription

Hello there, and welcome to another episode of Money Script Monday. My name is Adam Reyna, and of course, we're really excited for you to attend.

I'll tell you, this episode I'm really excited because this one's for you, just the agent or advisor. And I wanted to start by challenging you.

The challenge is, if you've never used these Money Script Monday videos to help generate business, to help get a spark from a client that you may have not connected with in a while, again, I challenge you to use those to create business.

That's why we do these.

We do them to educate you as the advisor. But at the end of the day, our job is to help you write business.

Talk to our team, talk to your FSR, talk to our marketing team about what we're doing to spread the word about insurance, annuities, and investments using these videos.

Today's topic is an agent guide to high net worth foreign nationals, so just for you, the agents. This one, we'll not be client-friendly.

What I wanted to do with this video is just to hopefully open up another market for you.

If you're not talking to foreign nationals or somebody who you may have thought didn't qualify for insurance in the United States, there might be a good chance that we can find a home for that person.

What we're going to talk about today is why foreigners like U.S. life insurance, we're going to talk about who qualifies, and ultimately, we'll talk about how you write that business.

Why U.S. Life Insurance?

Let's get started with why people like the U.S. life insurance.

Typically, in other countries, other investments are really risky. So, risk comes from a lot of different places.

We all know volatility in the market brings on risk. So. putting a floor on an insurance product is always a good thing, but they also might suffer risk from the government.

It could be a dictatorship.

Somebody who creates a lot of net worth their entire life and then, all of a sudden, the government steps in and inhibits their ability to pass that along to their next generation is very risky if you ask me.

That is a form of risk.

Also, a lot of these businesses overseas, they carry lots of debt. They're investing in themselves, they're doing a really good job raising capital, but they do carry a lot of debt.

In the event that that business fails, they, of course, need to take care of that debt or their home insurance can take care of that as well. But depending on the country, their home insurance typically is not great.

We did talk about the strict government.

Also, in some of these other countries, there may be higher mortality costs due to pollution, due to shorter life expectancy, so their cost of insurance can be very high.

At the end of the day, the U.S. economy is strong. I think everybody across the globe knows that.

So, if they have an opportunity to invest in life insurance, real estate, any sort of investment accounts in the United States, they're leaping at the opportunity to do so.

And then, finally, our insurance, specifically IUL, has some of the best borrowing options in the industry.

So, when someone does need to go in there and take money out using those participating loans or something like that, our insurance is very, very superior.

Again, if you have any foreign national clients or someone who is considering investing in the United States, all you have to do is simply explain the product versus what they may have, and ours is going to be superior.

I can pretty much promise that. Okay. So that's the why of why people want U.S. life insurance.

Who Qualifies?

Let's talk about who qualifies.

We did talk about U.S. permanent residence. Somebody who is living here permanently that may not be from the U.S. originally, work with us on that.

As you'll see, as a trend here, I'm going to say work with us a lot, because we do have an in-house underwriter that can really help you prequalify a case.

We don't want you to go all the way down the road on certain cases and then find out somebody doesn't qualify.

Again, work with us on that to prequalify.

So, whether it's a U.S. permanent resident, a U.S. citizen living abroad, or what we're looking at today as those high net worth foreign nationals.

A high net worth foreign national is somebody who has approximately $2 million of global assets and approximately $100k of income.

And that is carrier specific. So again, work with us and find the right carrier before we go too far down that road.

And then, of course, they do have to have Nexus. Nexus, if you didn't know, is basically a connection to the United States.

That's a very, very broad statement.

But what we typically see is somebody who has the EB-5 visa, so that's a foreign investor visa.

A lot of times, we see these really, really high net worth that are probably 10x to $2 million global assets investing in corporate real estate, investing in big brokerage accounts or other companies here in the U.S. to, again, get those assets out of their home country.

Some other qualifying factors there, they could have U.S. real estate, they could have some other investment interests in the U.S., they could be employed here, or of course, they own a business.

Again, there is a longer list, but those are some of the most common that we see.

Give us a call, pick up that phone, let us help you generate some business.

We talked about why, and we talked about the who, let's talk about the how.

How to Write it?

This is not a straightforward insurance sale, I would tell you that right up front. This is not your typical find a client, send in an app, and we're approved.

First of all, everything has to take place in the U.S. So we can't be out on that foreigner's yacht.

We can't be in the air. We have to be within the U.S. borders, and all of the business must take place here in the U.S.

Also, we have to get you, as the advisor, prequalified at the carrier typically. You do have to take some extra anti-money laundering training.

We want to make sure that if we are moving assets to the United States, it's done in a very legitimate way. Work with us on the presale side to make sure you qualify as the agent.

Also, we're typically going to need to see third party financials, and if it's a big life insurance case, we might also need medical records.

What I'll bring up there is, a lot of times, these medical records or third-party financials are in a different language.

There entails the task of translating that to English because the carrier is going to need to see everything in English to have it underwritten and looked at through suitability.

So again, work with us and the carriers on that.

Some of them are pretty flexible, but at the end of the day, we need to make sure everything is nice and tight before we send it to the carrier.

Also, a very good thing to help out is once an insured or somebody comes over and does their initial application, does their exam and labs here in the U.S., they can go back to their home country and continue doing business.

And then if they have LPOA, which is your limited power of attorney, they may not need to come back to deliver the policy.

Once we get it applied for, get them examined here, they can go off. We get it issued, we get it approved, we get the delivery, pack it over to you.

You can work with their attorney to have them signed off so that foreign investor does not have to come back to place that case right away.

So again, at the end of the day, you want to talk to us before you get too far down the road with these cases, because there's a lot of moving parts, a lot of ways that it could go wrong.

We want to make sure it goes smoothly.

And lastly, again, please reach out to LifePro at 888-543-3776 because we want you to create business with these videos.

This was your guide to high net worth foreign nationals, a nice broad overview. And my name is Adam Reyna.

We'll talk to you next time. Thank you.