Whole life insurance (infinite banking)

[stevy777]

Has any non US residents gone down the infinite banking route? Love to hear how you did it

Infinite banking is using US Whole life insurance, not for death benefit but to leverage the cash value for investments.

 

[JustAnotherNomad]

I'm not sure if I fully understand the concept.
Obviously it sounds nice to have the money in an insurance for asset protection and tax advantages, but how is the money invested and how much does the insurance company charge in fees? I also wouldn't be sure if the tax advantages offered in the US are applicable to all other countries.

There is unit-linked life insurance, which is used in a similar way:

https://www.onelife.eu.com/our-solutions/why-life-assurances/

https://wealins.com/actualites/WEALINS,-A-LEADING-PROVIDER-OF-WEALTH-INSURANCE-IN-LUXEMBOURG/49

I've never done the math, but I'd think you'd have to live in a country with extremely high taxes for this to potentially make sense. Otherwise the insurance fees would probably eat up your investment.
I think one might be better off with a foundation or trust. But maybe someone else has more experience with this.

 

[Silvio]

From what I've seen the fees are not cheap, but would like to join the question

 

[Patrick846]

Some US insurance companies will accept non US resident. But some countries are excluded. Also as a non US resident and taxpayer, you may not enjoy all the tax benefit of these kind of contracts.

As a US resident and taxpayer, I am using life insurance policies to funnel all my cash flow, and borrow from them to reinvest. My money grows at two places at the same time, and I can deduct the interest of the loan as an investment expense. I gain asset protection, increased return, and a free life insurance on top of it... Life insurance are heavily front loaded, so it takes a few years to absorb the cost. But on the long run, it is a great product. There are different brands of this concept. Infinite Banking is one subset of it. There are many others: bank on yourself, LASER fund, the ANS asset, ... Better look for an insurance agent who is not tied with one brand, but understand all of those and can steer you towards the best product for your needs.

 

[stevy777]

There are different brands of this concept. Infinite Banking is one subset of it. There are many others: bank on yourself, LASER fund, the ANS asset, ...

Thank you for that - i see a rabbit trail coming up for me

Better look for an insurance agent who is not tied with one brand, but understand all of those and can steer you towards the best product for your needs.

Do you have a good one to recommend ?

I've found someone in the US who does whole life insurance for non-residents. He prefers. universal index life but can do whole life too. I need to go to the USA to get it done though and realize it will take a few months, and having connections to USA is good. As i'm investing in USA i need a ITIN, i'm guessing that will help (these Whole life products for infinite banking method are unique to the US and Canada , they can't be done in other countries)

I love the idea of the double play and letting our money work in two places at the same time

For those unfamiliar with this strategy, i think it comes from Nelson Nash in the 80's which may be a good starting point - Becoming Your Own Banker: Unlock the Infinite Banking Concept: R. Nelson Nash: 9780972631617: Amazon.com: Books

though lots of mastermind groups use these techniques

 

[Patrick846]

Do you have a good one to recommend ?

I've found someone in the US who does whole life insurance for non-residents. He prefers. universal index life but can do whole life too. I need to go to the USA to get it done though and realize it will take a few months, and having connections to USA is good. As i'm investing in USA i need a ITIN, i'm guessing that will help (these Whole life products for infinite banking method are unique to the US and Canada , they can't be done in other countries)

I myself also prefer IUL than WL for investment purpose. Even if the volatility is higher, on the long run you'll get better returns.
Yes, agents can only get business in the states where they are licensed. If you are residing in a foreign country, you would have to find an agent in that country and that will be difficult to have access to US insurance products.
If you come to the US, while you are there, then you can do the paperwork for it. Don't forget that depending on the amount sought and you medical history, you may need to submit to a medical exam, also in the US. So you may have to be there for a few weeks to have everything done (or make at least two trips).
Last, as I mentioned, it is only available for some specific foreign countries, as some other have specific exclusion in their local laws.

For instance here is one US insurance company pamphlet that offers foreigner's life insurance:

Who is eligible for the **** program?​

Non-U.S. citizens:

• Those who may or may not have the intention to permanently reside in the U.S.
• Those who are in the U.S. on a non-immigrant visa or conditional Green Card

When an individual applies, what factors determine their foreign national underwriting qualification?​

• Countries of legal citizenship and/or residency
• Location of residence, employment, and legal authorization thereof
• Connections to the United States and need for U.S.-based life insurance

Countries available for this program:

Albania Algeria Andorra Antigua and Barbuda Armenia Aruba Australia Azerbaijan Bahrain Barbados Bhutan Bosnia and Herzegovina Brunei Cabo Verde (aka Cape Verde) Canada Chile China Curacao Dominica Dominican Republic Ecuador Federate State of Micronesia Fiji

French Polynesia Georgia Grenada Hong Kong Israel Jamaica Japan Kosovo Kuwait Malaysia Maldives Marshall Islands Mauritius Mexico Moldova Monaco Mongolia Montenegro Morocco New Zealand Oman Palau

Paraguay Peru Qatar Saint Kitts and Nevis Saint Lucia Samoa San Marino Saudi Arabia Serbia Seychelles Singapore Sint Maarten South Korea Sri Lanka Suriname Taiwan Tonga Trinidad and Tobago Tunisia Turks/Caicos (GBR) Uzbekistan Vietnam