Foreign Nationals: Getting American Life Insurance

Foreign nationals can get life insurance in the US, but the options available to them depend on their residency status, type of visa, and other factors. Permanent residents with green cards have the widest range of options, followed by non-permanent residents with visas, and non-residents with US ties.

For permanent residents, most insurance companies require a minimum of two years of residency before providing coverage. Once this requirement is met, they are eligible for the same options as US citizens. Non-permanent residents with visas may be able to get coverage, but they may face more challenges and have fewer options. The most commonly accepted visas for life insurance include the E, H1B, K, L, O, TN, and TD visas. Undocumented immigrants may also be able to get limited coverage with specific requirements, such as proof of residency, income, or employment.

Non-resident foreign nationals with significant US-based assets, business interests, or family ties may also qualify for life insurance coverage, but availability may be limited by their country of residence. The application process for foreign nationals typically involves gathering relevant documents, such as passports, visas, proof of residency, income, and employment, and undergoing a medical exam. It's important to note that the eligibility and requirements vary across insurance companies, so it's recommended to work with an independent broker to find the best deal.

Permanent residency and green card status

If you are a permanent resident of the U.S., you will have obtained a "green card" to prove your right to live and work in the country indefinitely. This status is not the same as citizenship, but it does mean that most insurance companies will be willing to work with you on life insurance coverage.

However, it is important to note that some companies require at least two years of permanent residency before they will cover you, so it is worth checking the company's policies carefully. Some green card holders are "conditional residents", also known as "temporary green card" holders. This type of green card expires after two years and requires extra steps to obtain full permanent residency. Given the two-year rule, many insurance companies have policies in place that mean people with conditional residency may need to go down a different route when seeking U.S. life insurance.

As a green card holder, you will generally be eligible for all the life insurance options available to regular U.S. citizens, although age, gender, health status, income level and other factors will still affect the cost and coverage options available to you. You will need to provide your green card number along with other standard identifying information, like your Social Security number (SSN) or driver's license.

If you are a non-U.S. citizen with a green card, you will generally enjoy access to the widest range of life insurance options with fewer restrictions than other foreign nationals.

Visa status

Whether you are a temporary or permanent resident in the US, you can get life insurance as a foreign national. However, the type of visa you hold will impact your eligibility for life insurance.

Green Card Holders

Green card holders are considered permanent residents of the USA. This means most carriers will be able to offer them coverage, and they are eligible for the best-class rates. The only extra step is usually sending a photocopy of their green card to the insurance company to confirm their immigration status.

Visa Holders

Not all visas are acceptable for life insurance coverage in the United States. The most commonly accepted visas include:

• E – employer-sponsored immigrant visa
• H1B – temporary work visa for someone in a specialty occupation
• K – nonimmigrant visa for a fiancé(e) of a U.S. citizen
• L – temporary work visa for an intracompany transferee
• O – temporary work visa for someone with extraordinary ability or achievement
• TN and TD – visas for Canadian and Mexican NAFTA workers

Student visas are not usually accepted but may be considered by a few companies if stringent requirements are met.

Undocumented Immigrants

It is difficult for undocumented immigrants to get life insurance in the US, but it is not impossible. Some carriers may offer coverage with specific requirements, such as proof of residency in the US, evidence of income or employment, and a taxpayer identification number or individual taxpayer identification number (ITIN).

Non-Resident Foreign Nationals with US Ties

Some high-net-worth foreign nationals with significant business, financial, and family ties in the US may also qualify for life insurance coverage. These policies are typically quite specialised and designed for internationals with complex affairs in different countries. Availability may be limited by the country of residence, and the underwriting process can be involved.

Non-resident status

If you're a non-resident foreign national with US ties, you may still be eligible for life insurance coverage in the US. This type of policy is typically quite specialised and designed for internationals with complex personal and business interests in different countries. Availability may be limited by your country of residence, and the underwriting process can be quite involved.

Your eligibility for life insurance depends largely on your legal residency status in the US. Non-resident foreign nationals with US ties are one of three main categories of residency status, the other two being:

• Green card holders/permanent residents
• Non-permanent residents with visas

Non-resident foreign nationals with US ties

If you're a high-net-worth foreign national with significant business, financial, and family ties to the US, you may qualify for life insurance coverage.

Green card holders/permanent residents

Green card holders are considered permanent residents of the US and can access a wide range of life insurance options with fewer restrictions. However, many insurance companies require a minimum of two years as a permanent resident before providing coverage.

Non-permanent residents with visas

If you hold a valid US visa, you may be able to get coverage, but you may face challenges. Few companies will issue coverage for student visa holders, but the following types of visa holders can often get coverage:

• E – employer-sponsored immigrant visa
• H1B – temporary work visa for someone in a specialty occupation
• K – non-immigrant visa for a fiancé(e) of a US citizen
• L – temporary work visa for an intracompany transferee
• O – temporary work visa for someone with extraordinary ability or achievement
• TN and TD – visas for Canadian and Mexican NAFTA workers

Your coverage options will vary depending on your visa type, duration, and the guidelines of the company issuing the policy.

Application process

If you're a non-resident, the application process will be the same as for US citizens. You'll need to:

• Complete an application
• Take a medical exam or complete a medical questionnaire
• Wait for the insurer to review your application
• Sign your policy documents and pay your first premium to activate your coverage

Documentation

You'll need to provide the following documentation to confirm your immigration status:

• Visa
• Social Security Number (SSN)
• Employment Authorisation Document (EAD)
• Individual Taxpayer Identification Number (ITIN)

You may also need to provide:

• A completed foreign resident questionnaire
• Personal identification form (ID)
• Forms to confirm residency in the specific US state where you live
• Medical records from the past five years

Country of origin

A foreign national's country of origin will play a determining factor in their eligibility and rating for life insurance.

Letter ratings of A, B, C or D are used by life insurance companies to assign a risk classification to a country. It is relatively easy to get a policy if you live in an A-rated country. If you live in a D-rated country, getting coverage could be difficult, if not impossible.

Foreign nationals of some countries are not eligible for U.S. life insurance. That is because those countries are either strictly regulated, or the risk profiles are too high for American insurers. High-risk profile countries currently include Afghanistan, Cambodia, Haiti, Iraq and Lebanon.

Several countries do not allow their citizens to buy life insurance outside the country they live in. These include Croatia, Greece, Hungary, Japan, Panama, Poland, Switzerland and Uruguay.

Insurers can't accept applications from residents of some countries based on rules set by the U.S. State Department. These restrictions are the same across all companies and are subject to change based on federal regulations.

Some insurers require that you live in the U.S. for at least one to five years before they'll approve you for a policy. Alternatively, if you split your time between the U.S. and another country, some insurers require that you spend the majority of your time in the U.S. – but the minimum varies by company.

If you're a U.S. citizen and want to purchase life insurance on your non-U.S. citizen spouse, the requirements are the same as if your spouse purchased it themselves. At a minimum, your spouse will need a Social Security number. Most insurance companies also require a green card or valid visa.

Application process

The application process for life insurance as a foreign national in the US will depend on your residency status, visa type, and the insurance company's requirements. Here is a step-by-step guide on how to apply for life insurance as a foreign national:

• Gather Documents: You will need to provide various documents to prove your identity, residency or visa status, and financial situation. These may include your passport, visa or green card, proof of residency (such as a state-issued ID), Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), proof of income or employment, and a valid driver's license.
• Find an Insurance Broker: It is highly recommended to work with an insurance broker or agent who has experience in working with foreign nationals. They can help you navigate the complex process, find the right insurance company, and ensure you meet all the requirements.
• Research Insurance Companies and Policies: Different insurance companies have different guidelines and requirements for foreign nationals. Research and compare the policies, features, and costs offered by various providers. Consider the type of coverage you need (term, whole life, or universal life insurance) and choose a company that meets your specific needs.
• Complete the Application: Fill out the application form with basic information about your health and finances. Be prepared to provide additional documentation based on your immigration status. You may also need to complete a foreign resident questionnaire, which includes questions about your health, work status, and travel history.
• Medical Exam or Questionnaire: Most insurance companies will require a medical exam to evaluate your health and insurance risk. In some cases, you may only need to answer health-related questions. The insurance company may also request medical records, especially if you have pre-existing health conditions.
• Underwriting Process: After submitting your application, the insurance company will assess your health, age, and other risk factors. This process can take up to four to eight weeks. Premiums for non-permanent residents are usually higher due to the perceived additional risks.
• Review and Accept Policy: If your application is approved, carefully review the terms and conditions of the policy. Understand the requirements for paying premiums, such as using a US bank account and paying in US dollars. Sign the policy documents and make the first premium payment to activate your coverage.

Remember that the specific steps may vary depending on the insurance company and your individual circumstances. Always consult with a licensed insurance broker or agent to guide you through the process and ensure you meet all the necessary requirements.

Frequently asked questions