Can I use a cash-value life insurance policy for EB-5?

Generally, no. The EB-5 program requires that the invested capital be genuinely at risk, and a cash-value life insurance policy typically provides a guaranteed value, which normally does not satisfy that program requirement.

The underlying logic of EB-5 is that the investment must be deployed into a real commercial enterprise, subject to gains and losses based on business performance. That is the meaning of capital at risk: no guaranteed return of the invested amount can be promised.

A cash-value life insurance policy accumulates a recoverable amount in a predictable way, a characteristic that is the opposite of the commercial-risk exposure the program expects. For that reason, funds held in that form are normally not accepted as a qualifying investment.

It is worth distinguishing the source of the funds from the form of the investment: you could, for example, surrender a policy and then direct those proceeds to an eligible project, always documenting the lawful origin of the funds. Because the analysis is technical and handled case by case, confirm the current requirements with USCIS and consult a specialist before structuring your investment.

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Victoria Harper

Editor-in-Chief

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As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.