@gosanth generally agreeing with the answers here from all of my colleagues , please note that depending on exact facts and circumstances, a foreign life insurance may be classified as PFIC and subject to its onerous rules. Tell more about the insurance company, type of insurance ( whether ULIP or whatever etc. ) and the country where it is . I am assuming here that you are US person ( citizen/GreenCard/ Resident for Tax purposes ).
Will circle back once I hear your response.
