Immigrant Life Insurance: Is It Possible To Get Covered?

Life insurance is a crucial financial protection for individuals with financial dependents, and certain policies can also act as a wealth-building family asset. While US citizens and permanent residents have an advantage when it comes to getting life insurance, non-permanent residents and immigrants can still obtain coverage, although their options may be more limited and the process more challenging.

Undocumented immigrants can obtain life insurance in the US, but only a handful of carriers will insure them, and they must follow a specific process and provide certain documents, such as proof of US residency, an Individual Taxpayer Identification Number (ITIN), and a valid checking account. Visa holders may also be able to obtain life insurance, depending on their visa type and duration of stay. Green card holders often have a straightforward path to buying life insurance and are treated similarly to US citizens by insurance companies.

What type of life insurance can an immigrant get?

The type of life insurance available to immigrants depends on their visa status, how long they have lived in the US, and their country of origin.

Visa holders

Visa holders can get life insurance in the US, but their options will depend on the type of visa and the length of their stay. Immigrant visas are generally more acceptable to insurance companies than non-immigrant visas because they indicate that the holder intends to stay in the US permanently.

The most commonly accepted visas include:

• 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

Student visas are not usually accepted, but a few companies may consider them if certain requirements are met.

Green card holders

Green card holders are treated similarly to US citizens by insurance companies and have the same options for life insurance coverage.

Undocumented immigrants

Undocumented immigrants can obtain life insurance with certain conditions. They will need a US residency address and an Individual Taxpayer Identification Number (ITIN).

Types of life insurance

There are two main types of life insurance: term life insurance and permanent life insurance.

Term life insurance

Term life insurance provides coverage for a specific period, usually 10-40 years. It is the most affordable option and is ideal for those with children or a mortgage.

Permanent life insurance

Permanent life insurance lasts for the entire lifetime of the insured individual and includes a cash value saving component that grows tax-free. It is more expensive than term life insurance but is best for those with complex estate planning needs or specific financial circumstances, such as lifelong dependents.

Insurance companies for immigrants

Lincoln Financial, Prudential, and Transamerica are recommended for non-US citizens and foreign nationals.

What are the requirements for an immigrant to get life insurance?

Immigrants can get life insurance in the US, but the requirements vary depending on their visa type, length of stay, and residency status. Here are the general requirements for immigrants to obtain life insurance:

Visa and Residency Status:

• Visa holders can buy life insurance in the US, but the specific requirements depend on the type of visa and the intended duration of their stay. Common visa types that are accepted for life insurance include E, H1B, K, L, O, TN, and TD. Student visas are usually not accepted, but some companies may consider them if certain conditions are met.
• Green card holders often have a more straightforward path to buying life insurance and are treated similarly to US citizens by insurance companies.
• Undocumented immigrants can also obtain life insurance but may need a US residency address and an Individual Taxpayer Identification Number (ITIN).

Documentation:

• A Social Security Number (SSN) or a Tax Identification Number.
• Proper identification, such as a visa, SSN, Employment Authorization Document (EAD), or ITIN.
• A US bank account to pay policy premiums.
• A US residential address to list on the application. All policy paperwork and medical exams must also be completed while in the US.
• Photocopy of the visa to confirm immigration status.
• Foreign resident questionnaire, which includes basic questions on health, employment status, and travel history.
• State-specific residency forms, such as tax documents or a lease, depending on the insurance company and state guidelines.

Other Factors:

• Substantial presence in the US, typically requiring residence in the country for at least one year, although some carriers may require up to five years.
• Significant interest in staying in the US, demonstrated by owning a home or business, being married to a US citizen, or having US investments.
• Country of origin, as insurers may not accept applications from residents of certain countries based on US State Department rules or international regulations.
• Medical exam, which is usually required for all applicants, including US citizens and non-citizens.

It is important to note that requirements may vary among insurance companies, so it is recommended to work with an independent broker who can help navigate the different guidelines and find the best coverage options.

What are the best companies for immigrant life insurance?

Yes, immigrants can get life insurance in the US, but the options available to them will depend on their visa type, stay duration, and residency status.

Lincoln Financial

Lincoln Financial offers a diverse array of life insurance policies, including competitive no-medical-exam and high-net-worth options. It is a good choice for those with existing health conditions, such as depression, stroke, and heart conditions, as well as marijuana users. However, term life insurance is not available in New York.

Prudential

Prudential is one of the oldest life insurance companies, with nearly four million policyholders and 150 years of experience. It offers competitive coverage options for seniors and people with common medical conditions, such as asthma, depression, and fibromyalgia. Prudential is a good choice for younger applicants and those with various immigration statuses, including visas and green cards.

Transamerica

Transamerica is one of the largest life insurance companies, with over 12 million active accounts. It offers affordable rates for all ages and allows individuals under a certain age or coverage amount to skip the medical exam. Transamerica is a good choice for immigrants who don't have a Social Security Number (SSN) or Taxpayer Identification Number (TIN). However, additional restrictions may apply, and eligibility will depend on the individual's situation.

Other Options

Other life insurance companies that offer coverage to immigrants include:

• State Farm
• Mutual of Omaha
• Nationwide
• New York Life
• Pacific Life
• Northwestern Mutual
• Guardian Life
• Protective

How do immigrants apply for life insurance?

Immigrants can apply for life insurance in the US, but the process and requirements may differ from those for US citizens. Here is a step-by-step guide on how immigrants can apply for life insurance:

• Determine Eligibility: Before applying for life insurance, immigrants should check their eligibility. Valid green card holders and certain visa holders are generally eligible for life insurance in the US. The specific type of visa can impact eligibility, with immigrant visas (for those intending to stay in the US permanently) being more widely accepted than non-immigrant visas. Undocumented immigrants may also be able to obtain life insurance under certain conditions, such as having a US residency address and an Individual Taxpayer Identification Number (ITIN).
• Choose a Broker or Company: When applying for life insurance as an immigrant, it is highly recommended to work with an independent broker who has access to multiple insurance carriers. Brokers can help navigate the different requirements and guidelines set by various insurance companies. Some companies only accept green card holders, while others may cater specifically to visa holders or undocumented immigrants.
• Gather Required Documentation: Immigrants will need to provide specific documentation to apply for life insurance. This typically includes a valid visa or green card, a Social Security Number or Tax ID, and proof of US residency. Additional documentation may be required depending on the insurance company and the applicant's immigration status.
• Complete the Application Process: The application process for immigrants is similar to that for US citizens. It involves filling out basic information about health and finances. Immigrants may need to complete extra paperwork based on their immigration status. A medical exam or questionnaire is usually required, and the insurance company will review the application before approving coverage.
• Understand the Limitations and Restrictions: Non-US citizens may face certain limitations when purchasing life insurance. These can include restrictions on the coverage amount, the length of the policy, or the types of policies available. Additionally, some countries' residents may be ineligible for coverage due to US legal restrictions or international regulations prohibiting the purchase of insurance outside their home country.
• Disclose Immigration Status: It is crucial to be honest and disclose your immigration status during the application process. Misrepresenting or withholding information can lead to the denial of claims or cancellation of the policy. Specific products and rates may also vary based on immigration status.
• Consider the Type of Life Insurance: Life insurance policies can be categorized into term or permanent coverage. Term life insurance is temporary and more affordable, making it ideal for those with children or a mortgage. Permanent life insurance lasts a lifetime and is more expensive, offering features like cash value accumulation. The choice depends on budget, family circumstances, and needs.
• Understand the Requirements for International Beneficiaries: If naming a beneficiary outside the US, be aware that transferring funds internationally may have tax implications. It is recommended to consult an expert in this situation. Additionally, providing relevant information about the non-citizen beneficiary can help ensure a smoother claim process.

Can an undocumented immigrant be a beneficiary?

Yes, an undocumented immigrant can be a beneficiary of a life insurance policy. There are no restrictions on who can be named as a beneficiary, and the life insurance carrier will pay the beneficiary the death benefit, even if they are living in another country.

However, there is a potential issue to be aware of. US immigration departments could step in and intervene, so it is recommended that you consult an immigration attorney for guidance on this matter.

Additionally, while naming an international beneficiary is allowed, the payout process might be longer due to international laws and bank protocols. It is always good practice to inform the named beneficiary about the policy and provide them with relevant details to ensure a smoother claim process.

Frequently asked questions