International Insurance Services 

We are pleased to provide full international insurance support for clients around the world. International life insurance means coverage available worldwide, but issued in a fully regulated, tax neutral jurisdiction so that unnecessary tax implications are not incurred.  AG Transnational Ltd. has been dedicated to the offshore markets since the mid 1980s. AGT has over forty years of legal, tax, estate planning, executive benefits, marketing and executive management experience in the life insurance industry. Through a strategic alliance, AGT provides full case support, from a preliminary discussion phase, to case design, carrier and product selection, implementation support, and administration. The broker or agent is the full broker of record accessing international carriers from around the globe.

1.International Offerings
The International Life Insurance market today is rapidly expanding as more and more carriers from all over the world try to find ways to enter the market. Start-up companies are being formed in small countries to provide unique tax planning vehicles. Existing carriers are setting up either branches or subsidiaries in neutral jurisdictions to meet the needs of high net-worth "world citizens." Along with this activity, however, come opportunities for the professional and hazards for the ill-informed.

2. Why International Insurance?
There are several factors driving the market. When it comes to life insurance, annuities, investments and other financial products, many "world citizens" have concerns about products in their own country: currency devaluations, inflation, government stability, the strength of local companies, product efficiency, confidentiality and taxation, to name just a few. Many go to the United States, Europe and elsewhere for financial products. However, they can inadvertently end up with foreign taxes and implications they did not expect.

3. Problems NRAs (Non-resident Aliens) have with US carriers
Clients who invest outside their own country want security, good performance, confidentiality and favorable tax treatment. They also want access to these funds for retirement and times of need. If a Non US Resident, for example, buys life insurance from a US carrier, and uses any of the living values, the gain is taxable in the US and the US carrier must withhold the tax. If an NRA dies owning US life insurance on the life of another, there will be US estate tax to pay. The solution is US dollar insurance from an off-shore carrier. NRAs who unknowingly bought US life insurance can correct the problem by using a tax-free exchange to an offshore carrier under IRC 1035.

4. International Carriers
Life insurance from a quality, financially strong, Non US carrier with no ties to the US, issuing the type of policy the client really wants in a sound tax neutral jurisdiction will be far superior. This insurance can be denominated in hard currencies like US dollars, Euros and Sterling. The underlying investments can even be made back into US equities, US bonds or a multitude of funds from around the world.

5. Eliminating US death taxes for NRAs owning US property
US estate taxes often come as a surprise to NRAs owning US situs property. Many appreciate that if they own real estate in the US, they will have US death taxes to pay. However, they generally are not aware that if they own securities from a US domiciled corporation, they will also have US death taxes to pay, even if they never set foot in the US. NRAs get no marital deduction and only a $60,000 federal credit, so these US taxes can be significant. Specially designed off-shore insurance products can effectively remove these securities from US taxation without even liquidating them. This solution is generally not available for US real property, personal effects or closely held business interest.

6. Pre-US-immigration planning
NRAs coming to the US for more than 183 days a year earn the privilege of being treated as a US taxpayer. As such, they will be taxed in the US on all of their worldwide income. A frequently used device had been to set one's assets up on an off-shore trust before coming to the US. However, under 1997 US tax changes, one will have to set the trust up more than five years before coming to the US. There’s a solution. Another specially designed off-shore product can legally shelter a non US investment portfolio from US taxation while they reside in the US and then when they return to their home country, they can liquidate the contract without any US taxes to pay. This solution is still available if they have already arrived in the US and been here for 183 days, but only on earnings from this point forward.

7. International Executive Benefits
Many corporations today are multinational. Imagine the US operation having a "split-dollar" plan for their top executives. Executives in other countries have not been included because "split-dollar" is typically not known outside the US. However, with the use of an international trust and international insurance the plan can be replicated for most of the non-US executives.

8. International Key Person Indemnification
Most companies today have some international ties, whether it be manufacturing goods abroad or selling products or services overseas. Consider key people in foreign countries who may be critical to the US business. Insuring those foreign individuals is now almost as easy as insuring US keypeople, without unfavorable tax implications.