Can a French national becoming a US resident legally keep their life insurance? Is there any legal restrictions, other than having to inform the bank and the IRS (because of FATCA)?

1 Answer 1


In the US, there's an excise tax on foreign insurance policies. The tax rates depend on the kind of insurance, for life insurance it's 1% of the premium.

You can find more information in the IRS publication 510.

I'd personally suggest avoiding this. There are plenty of insurance companies in the US.

Talk to a tax adviser (US-licensed EA/CPA) for more details and a professional advice.

  • 1
    Note that a French “assurance vie” isn't really an insurance contract. What you buy is two insurance contracts: a traditional life insurance or “assurance décès“ in French (providing for the payment of a lump sum upon the death of the insured) and a “counter-insurance” (providing for the payment of a lump sum if the insured is still alive at the end of the term). The lump sum in question is the sum of all premiums together with interest. The point of the whole thing is to sell some saving product that falls under different tax rules than regular investment funds.
    – Relaxed
    Dec 3, 2019 at 19:53

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