NAILBA Perspectives Summer 2019 | Page 30

LIFE: FOREIGN NATIONALS GRAB BROKERAGE EXPANDING BEYOND THE BORDERS Insurance for all levels of Foreign Nationals “People from around the world often consider the U.S. the best place to invest and secure a future under legal and heavily regulated financial institutions.” Dr. Carlos Martinez As Sr. VP, Head of Foreign National Distribution for National Western Life, Dr. Carlos Martinez has been involved in the international life insurance for more than 20 years and served as President of Central Texas Home Office Life Underwriters Assoc. [email protected]. No longer just for high net worth These staggering numbers pose a significant question—are these types of financial products exclusive to high net worth individuals? The phenomenon and accompanying opportunities are now more relevant than ever. The foreign national marketplace in the U.S. continues to grow, expanding beyond the boundaries of ultra-wealthy individuals. The U.S. is consistently a top contributor to today’s global economy. People regularly migrate to the U.S. on a permanent basis, but more commonly, individuals visit the U.S. for a variety of reasons just as significant: to go on vacation, to visit close family living in the States, to invest in property, to invest in small businesses or large corporations, or to simply diversify their portfolio. People from around the world often consider the U.S. the best place to invest and secure a future under legal and heavily regulated financial institutions. For this reason, people are turning to the insurance industry. Foreign Nationals demand for life insurance and annuities is as real and crucial as it is for everyone, regardless of residence. Foreign nationals may continue living in the country or may just visit for a short period of time, but they represent a tremendous buying power in our economy. Because of their immigration status, foreign nationals’ insurability and underwriting risks are still linked to their country of origin, where they could potentially return at any given time. Foreign nationals can be found anywhere, but no one is consulting with them in this context. It is a market rich with opportunities. Ways to identify potential leads Start with your community. It’s possible friends and family know foreign nationals interested in a financial product, or have friends who may be interested as well. Word of mouth is essential in accessing this market, as well as engaging with groups dedicated to assisting specific multicultural groups. Immigration lawyers, foreign investor-focused real estate agencies, financial and wealth management firms, and foreign students (who by default become the nexus needed for parents to apply for insurance) may all know someone seeking a financial product to help them meet their goals. We have seen foreign national individuals maintain fantastic persistency, as their U.S.-based life insurance policy becomes one of their most important assets, not only for the safeguarding of their family, but for their overall economic state. Citations: 1 The Organization for International Investment in 2018 2 National Association of Realtors 30 Perspectives Q3 2019 by the In today’s changing world, the need for life insurance and annuities is no longer exclusive to high net worth foreign nationals. While there is a natural need to cover uncertainties that lie ahead of high net worth foreign individuals, the need goes far beyond this limited, niche group. In a report published by the Organization for International Investment in 2018, it was noted that “Foreign Direct Investment in the United States (FDIUS) surpassed $4 trillion on a historical-cost basis.” 1 Additionally, the National Association of Realtors reported the foreign buyers purchased $121 billion of residential property as of March 2018, with property averaging a cost of $454,400. 2 HORNS! November 7– 9, 2019 Come meet the market face-to-face. Belong. Connect. Grow. www.nailba.org In its 38 th year, NAILBA’s Annual Meeting is the largest and most revered gathering of independent brokerage agencies and advisors in the country. It is where the brokerage industry meets, bringing together agency principals, independent advisors, Register now at www.NAILBA.org Gaylord Texan Resort and Convention Center Dallas, Texas Sponsors of NAILBA 38 Presenters carrier executives, and the senior leadership from more than 100+ exhibitors. Relationships are built. Business insights are shared. And, business gets done! Come join in the excitement! Featured presenters include: Gen. John Kelly Former White House Chief of Staff, Secretary of Homeland Security Jim Kelly NFL Quarterback and cancer survivor Dr. Bob Baur, Chief Global Economist, Principal Global Investors Tim Wallace iPipeline CEO and technology expert Kevin Pollak Award winning comedian