Being a resident alien, does a foreign life insurance (insurance + investment) that pays back some amount every year after a certain period needs to be reported as taxable income during tax filing? Or do I even have to report this life insurance at all?
For instance, a foreign whole life insurance for which the I pay a premium of ~$3000/year for 10 years, and it would start paying me ~$1200/year after completion of 6 years until the 10th year. After 10 years, the amount paid to me would be ~1585/year until 99 years of age. In this case-
- This amount that would be paid back every year, does this count as taxable income and needs to be reported?
- If yes, would this have to be reported from the 1st year even if nothing is paid back to me or from the year it starts paying back?
- If my family (a foreign person) pays for the premium for my life insurance policy, would I have to report this insurance in US?
