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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 FACTA)?

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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.

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