Can a foreigner be a life insurance beneficiary?
Asked by: Rhoda Botsford | Last update: November 9, 2025Score: 5/5 (48 votes)
Yes, most life insurance companies will allow a non-US citizen, such as a family member living abroad, to be named as a beneficiary. However, that person typically must have an “insurable interest” – for example, because they are financially dependent on the policy holder.
Who cannot be a life insurance beneficiary?
Ineligible Beneficiaries: Minors: Generally, minors (individuals under the age of 18 or 21, depending on the jurisdiction) cannot be named as direct beneficiaries of a life insurance policy. In such cases, a trust or custodian may be designated to manage the proceeds until the minor reaches the age of majority.
Can a foreign person be a beneficiary?
Selecting a non-U.S. beneficiary requires knowledge of complex domestic and foreign tax laws, so grantors should not include foreign nationals in their Trusts without seeking a lawyer's advice. A dedicated legal team could help you minimize the taxes associated with designating a foreign beneficiary or trustee.
Does a beneficiary have to be a citizen?
A beneficiary is the person or entity that you designate to receive the proceeds from your Life insurance policy. You can designate anyone to be your beneficiary. The beneficiary does not have to be a U.S. citizen.
Can you get life insurance if you are not a citizen?
Do You Have to Be a US Citizen to Buy Life Insurance? In short, no. Buying life insurance for immigrants is a little trickier, but it's absolutely doable if you meet all the requirements. Several types of foreign nationals choose to live in the United States either temporarily or permanently.
Can You Be The Beneficiary Of Your Own Life Insurance Policy?
Can a life insurance beneficiary be a foreigner?
Generally speaking, you can name a non-citizen, such as a family member living abroad, as the beneficiary of an annuity or other financial account. However, a life insurance beneficiary must typically have an “insurable interest” – for example, because they are financially dependent on the policy holder.
Who doesn't qualify for life insurance?
People are typically denied life insurance because they fall into a high-risk category. This is often due to health challenges like diabetes, obesity or a previous diagnosis of serious disease.
Who is eligible to be a beneficiary?
Can anyone be named as a beneficiary? Your beneficiary can be a person, a charity, a trust, or your estate. Almost any person can be named as a beneficiary, although your state of residence or the provider of your benefits may restrict who you can name as a beneficiary.
Can a beneficiary be out of the country?
In conclusion, If your life insurance beneficiary is in another country, you can still list him or her on your policy. You would need to make sure that he or she has an insurable interest in your death and also have ways of reaching out to the life insurance company.
Can a non citizen inherit?
Property Inheritance for Non-Citizens
It is perfectly legal to leave assets to non-citizen beneficiaries the same way you can leave them to U.S. citizens. There are, however, certain details you will want to address as you work with an attorney to make sure your affairs are in order according to your wishes.
What is international beneficiary?
The sender (“the remitter”) instructs his or her bank to send funds overseas to someone (“the beneficiary”). This can be done at a branch or by internet banking. The remitting bank sends the funds to a bank it deals with in the destination country (“the correspondent bank”).
Can my beneficiary be undocumented?
Relatives who are entitled to an intestate share of your property will inherit your assets whether or not they are citizens or legally in the United States.
Do foreign beneficiaries pay taxes?
A foreign beneficiary receiving an income distribution must include the beneficiary's share of the trust's U.S. sourced DNI. Generally, distributions of trust corpus and gifts or bequests of specific property as specified in the trust instrument are generally not taxable to a beneficiary.
What are life insurance beneficiary rules?
As a standard life insurance beneficiary rule, you must explicitly identify each beneficiary with their full name and Social Security number. Pro tip: Do you live in a community property state? If so, you'll need your spouse's consent to designate a primary beneficiary other than them.
Can you name a non family member to a life insurance beneficiary?
A person also need not be related to the insured to be named as a beneficiary; California law allows policyholders to designate anyone they want to be a beneficiary.
Who should not be named beneficiary?
Estranged relatives or former spouses – Family relationships can be complicated, so think carefully if an estranged relative or ex-spouse really aligns with your wishes. Pets – Pets can't legally own property, so naming them directly as beneficiaries is problematic. Consider a pet trust instead.
Can a foreigner be a beneficiary?
A non-US citizen can be a life insurance beneficiary. There are legal and tax considerations, and the policyholder must ensure the insurance company is notified of the international arrangement.
Can I get life insurance on someone out of the country?
Yes, you can name beneficiaries in different countries. The life insurance company will pay the death benefit to your beneficiary or beneficiaries in the country that they are currently living in.
Can I leave my inheritance to a foreigner?
Yes, non-citizens can inherit property just as citizens can. So, when you're drafting your will or living trust, or naming beneficiaries for your retirement accounts or life insurance policies, there's no problem with naming your non-citizen spouse.
Who is not an eligible designated beneficiary?
An eligible designated beneficiary (EDB) is always an individual. An EDB cannot be a nonperson entity such as a trust, an estate, or a charity.
Can my girlfriend be my life insurance beneficiary?
You can designate anyone to be the beneficiary of a life insurance policy, and doing so allows you to provide for your partner without having to jump through the hurdles that unmarried couples face.
What is the 10 year rule?
For defined contribution plan participants, or IRA owners, who die after December 31, 2019, (with a delayed effective date for certain collectively bargained plans), the SECURE Act requires the entire balance of the participant's account be distributed within ten years.
Who is disqualified from life insurance?
Specific Conditions that May Disqualify You
Certain health conditions and lifestyle choices can significantly impact your eligibility for full coverage life insurance. Chronic diseases such as heart disease, cancer, diabetes, and high blood pressure are among the top concerns for insurers.
What disqualifies you from a life insurance policy?
Pre-existing conditions – meaning any health issue or condition that existed before applying for coverage – are often considered high-risk by insurance companies and can lead to disqualification. Chronic conditions that require long-term medication or treatment can also impact eligibility.
Why would someone be rejected for life insurance?
Ask about the specific reason you were rejected, because you may be able to correct or address the issue. Reasons to be denied life insurance include: Medical – Such as high blood pressure, high cholesterol, being overweight, chronic illness or cancer.