MassMutual Announces New High-Net-Worth Foreign National Guidelines

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Effective immediately, MassMutual life underwriting has eased high-net-worth foreign national guidelines by updating U.S. nexus requirements, increasing internal retention limits. relaxing program requirements, and simplifying underwriting requirements. The competitive underwriting program for high-net-worth foreign nationals* living abroad and with business, financial, or personal interests in the United States launched in 2019.

“We are excited to launch our enhanced High-Net-Worth Foreign National Guidelines” said Rodger Hergenrader, Head of MMSD Life Underwriting. “After visiting and listening to a number of Advisors and Firms, and with the continued normalization of international travel, our new guidelines have expanded both our nexus and retention capabilities in a growing market.”

Enhanced underwriting guidelines:

Updated U.S. nexus requirements. Aside from the U.S. travel and net-worth requirements, one requirement below is needed to establish a U.S. nexus:

  • Own a business or real estate in the U.S.;
  • Work for a U.S.-domiciled company (not a foreign subsidiary);
  • Maintain a banking relationship with a U.S. bank or financial institution for six months or more and have a minimum balance of at least $250,000; or
  • Have a spouse or child (or grandchild, with adequate financial justification) who resides legally in the U.S.

Increased internal retention limits:

  • Residents of A countries can qualify for up to $20 million (previously $7.5 million).**
  • Residents of B countries can qualify for up to $15 million (previously $5 million).**

Relaxed program requirements:

  • The minimum base policy amount is $5 million (previously $10 million), or an annual base policy premium of $250,000, excluding riders.
  • The minimum global net worth remains $5 million except for premium-financed cases, where the limit is $10 million.
  • In addition to ownership by a U.S.-based trust and trustee, business, or limited liability company, individual ownership by the insured or spouse is now permitted in certain countries.
  • If U.S. based need for coverage is established, may be able to consider global assets in determining coverage need.

Simplified underwriting requirements:

  • A copy of the passport’s identity page is required in lieu of all passport pages. (All pages may be requested at the underwriter’s discretion.)

* Foreign nationals are:

  • Non-U.S. citizens (foreign citizens) who live outside the U.S. for more than three months.
  • S. citizens living outside the U.S. for an extended time (either more than three months, or more than six months, depending on the country), and are underwritten under the guidelines for foreign nationals.

**Refer to the latest country classifications. All existing and applied-for coverage with MassMutual reduces available retention. Automatic reinsurance is utilized before internal retention. Maximum retention limits are subject to case details, including the insured’s age and risk class.

FURTHER INFO

  • Guidelines for Foreign Nationals Living Abroad (LI7547) Quick reference to learn more about the underwriting eligibility requirements and guidelines for Foreign Nationals and U.S. citizens living abroad.
  • Guidelines for Foreign Citizens Living in the U.S. (LI7552) Contains underwriting eligibility requirements and guidelines for Foreign Citizens living in the U.S.
  • Guidelines for Foreign Travel (LI7553) Refer for underwriting guidelines related to foreign travel.