Even if they are non resident, you are supposed to disclose all life insurance( not just US based). So if you don't disclose on the application, you could run into issues at payout.
The country of origin becomes a big deal if there are issues with that foreign country and USA. With Trump presidency, I would not rule that out with Canada if things dont go his way. There was talk about retaliating against Canadians when after 9/11 they did not support going to war in Iraq. US was going to tax Canadian Pensioners who live in Florida. It went away after cool heads thought it over.
It is easy to pass a law saying Life insurance payments are only tax free for beneficiaries who are US citizens and green card holders.
If you have chance to buy in Canada, I would. I would also buy additional in the USA.
The country of origin becomes a big deal if there are issues with that foreign country and USA. With Trump presidency, I would not rule that out with Canada if things dont go his way. There was talk about retaliating against Canadians when after 9/11 they did not support going to war in Iraq. US was going to tax Canadian Pensioners who live in Florida. It went away after cool heads thought it over.
It is easy to pass a law saying Life insurance payments are only tax free for beneficiaries who are US citizens and green card holders.
If you have chance to buy in Canada, I would. I would also buy additional in the USA.