Reporting Insurance policies in FBAR

[Rajani11]

Hi Members,

I have 3 insurance policies in India for which i pay premiums every year. So, what shall i report in Fincen form regarding those insurances. When i report each policy as a separate account in Fincen form, what shall i write in Maximum Account value column for each policy? Do i need to report this years premium or all the premiums i paid till this year for each policy? I have not received any cash back.

[pus]

Dear Rajani11,

Maximum amount of insurance policy will depend your policy details. If your policy is unit linked then market value of the units will be considered for maximum balance if not then premium paid upto the end of the year will be considered for maximum value.

Thanks,
pus

[okonomi]

For finCEN 114, under-reporting would be a problem. Over-reporting is NOT a problem.
Rough, but liberal estimate should suffice.
( Zealous over reporting should watch for that FATCA limit for US tax residents)

[Rajani11]

Thanks Okonomi and Pus for your replies. My policy is not a unit linked policy. So, shall i report all the premiums i paid till year end as maximum account value? They don't not have a surrender value also as it has a lock in period of 3 years. I paid two year premiums till now.

[pus]

Dear Rajani11,

Yes. Premium paid till year end will be considered.

Thanks,
pus

[Rajani11]

Thanks Pus for your reply. Some are saying that i need to report the sum assured for the policy. Is it true?

[pus]

Dear Rajani11,

I don't think so. My opinion is to report premiums paid till year end.

Thanks,
pus

[Rajani11]

Ok, Thanks Pus for your help.

[maybe]

I report total-premiums-paid + "bonus value accumulated". The "bonus value" can be seen on LIC's (horrible) website if you register.

In your case though - since only 2 premiums - no bonus value would be applicable.

(Too painful / not worthwhile for for me - am going to get rid of these on my next trip back.)