Daca Recipients: Life Insurance Options And Eligibility

Life insurance is a complex topic, and when it comes to DACA recipients, there are several factors to consider. DACA, or Deferred Action for Childhood Arrivals, allows young people to live and work in the US, and while it offers stability and opportunities, there are limitations when it comes to certain benefits. In terms of life insurance, DACA recipients may encounter challenges due to their immigration status. However, it is important to note that non-US citizens, including those with temporary visas, can obtain life insurance in the US with certain qualifications.

State-funded programs

DACA recipients, also known as "Dreamers", have been barred from receiving government-funded health insurance. However, in 2024, the Biden administration finalized a rule that allows DACA recipients to apply for coverage through HealthCare.gov and state-based marketplaces. This change is expected to help more than 100,000 people get health insurance.

DACA recipients can also access public health programs that provide certain immunizations or treatment for communicable diseases. For example, the HRSA Health Centers program provides affordable, accessible, and quality primary health care to patients regardless of ability to pay, insurance status, or immigration status. HRSA Health Centers are located in every state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and the Pacific Basin.

Additionally, DACA recipients may be eligible for emergency Medicaid, which pays for emergency medical treatment for people who meet Medicaid eligibility requirements in their state but do not meet citizenship and immigration status requirements.

While DACA recipients can now access health insurance and certain public health programs, they still face limitations in other areas. For example, they are not able to get coverage through Medicaid or the Children's Health Insurance Program.

Employer-sponsored insurance

DACA, or Deferred Action for Childhood Arrivals, is a program that protects undocumented individuals from deportation and grants them access to work permits, social security numbers, health insurance, and more. While DACA recipients are not U.S. citizens, they can still obtain life insurance under certain conditions.

Eligibility for Life Insurance

To be eligible for life insurance in the U.S., DACA recipients must meet specific requirements set by insurance providers. These requirements often include:

• A U.S. residency address
• A valid form of identification, such as an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN)
• Ability to pay policy premiums with U.S. funds
• Completion of the application, medical exam, and policy delivery within the U.S.

DACA recipients who are employed may have access to employer-sponsored life insurance. This type of insurance is typically offered as a benefit by the employer and can provide coverage for the employee and their family.

When offering life insurance as a benefit, employers must follow certain rules and regulations. They are not allowed to discriminate against employees based on their citizenship, immigration status, or national origin when providing access to life insurance. This means that DACA recipients should have the same opportunity to enrol in employer-sponsored life insurance as any other employee.

Additionally, employers are not required to ask employees about their specific citizenship or immigration status. DACA recipients are not obligated to disclose their immigration status to their employers unless they choose to do so.

Types of Life Insurance

Life insurance policies can be categorized into two main types: term life insurance and permanent life insurance.

Term Life Insurance

Term life insurance provides coverage for a specific period, usually 10 to 30 years. It is typically more affordable than permanent life insurance and is ideal for those who want budget-friendly coverage, such as families with children or individuals with mortgages. Term life insurance is also customizable, allowing policyholders to choose the length of coverage, the amount of coverage, and additional riders to tailor the policy to their needs.

Permanent Life Insurance

Permanent life insurance, on the other hand, provides coverage for the insured's entire life. It is more expensive than term life insurance due to its permanent nature and often includes a cash value accumulation component that grows tax-free over time. Permanent life insurance is suitable for individuals with complex estate planning needs or specific financial circumstances, such as lifelong dependents.

Best Insurance Companies for DACA Recipients

When it comes to employer-sponsored life insurance for DACA recipients, it is important to choose an insurance company that is flexible and accommodating of non-U.S. citizens. Some insurance companies that are known to offer life insurance to DACA recipients include:

• Prudential: Accepts applications from various types of visa holders, including DACA recipients, as long as they have been U.S. residents for over a year.
• Transamerica: Offers affordable rates for individuals of all ages and does not always require a medical exam.
• Lincoln Financial: Provides competitive rates and coverage options for green card holders, although they do not extend coverage to visa holders.

In conclusion, DACA recipients can obtain life insurance, including employer-sponsored insurance, by meeting the eligibility requirements set by insurance providers. It is important to work with a broker who has experience with non-citizen underwriting and can help navigate the application process. By understanding their options and choosing the right insurance company, DACA recipients can secure the financial protection that life insurance offers for themselves and their loved ones.

Community health centres

DACA recipients can access healthcare through Community Health Centres, which are located in every state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and the Pacific Basin.

To find your nearest Community Health Centre, visit the Health Resources & Services Administration (HRSA) website.

Private plans

Private health insurance plans are another option for DACA recipients. While these plans can be more expensive than Marketplace or federal-sponsored plans, they can provide DACA recipients with the health coverage they need. It's important to note, however, that private plans do not offer any tax subsidies.

When considering a private health insurance plan, it's essential to work with a broker who has experience in underwriting non-citizens. The eligibility requirements and application process can vary depending on the specific insurance company and your immigration status. Some companies may only offer coverage to green card holders, while others may accept certain types of visas. It's also important to have a U.S. bank account and a U.S. residential address, as well as to complete the application, medical exam, and policy delivery in the U.S.

Additionally, there may be requirements related to the length of time you have lived in the U.S. and your ties to the country. Some companies may require you to have resided in the U.S. for at least one year, while others may look for evidence of substantial presence and significant interest, such as owning a home or business, being married to a U.S. citizen, or having U.S. investments.

It's worth noting that not all insurance companies are flexible when it comes to life insurance for non-citizens. Working with a broker can increase your chances of finding a plan that suits your needs and ensures you have the correct documentation.

Affordable Care Act (ACA)

The Affordable Care Act (ACA) is a federal statute that was signed into law in 2010 as a comprehensive health care reform. The ACA aims to increase the quality and affordability of health insurance, lower the uninsured rate by expanding coverage, and reduce the costs of healthcare.

ACA's health insurance reforms include:

• Prohibiting insurance companies from denying coverage to individuals with pre-existing conditions or charging them higher premiums.
• Allowing children to remain on their parents' insurance plans until they turn 26.
• Requiring insurance plans to provide certain preventive services without any out-of-pocket costs.
• Establishing health insurance exchanges, or marketplaces, where individuals can compare and purchase insurance plans.
• Providing subsidies to low- and middle-income individuals and families to help them afford insurance.
• Expanding eligibility for Medicaid, a government-run health insurance program for low-income individuals.

ACA has had a significant impact on healthcare in the United States. It has helped millions of people gain health insurance coverage, leading to improved access to healthcare services and a reduction in the uninsured rate. The Act has also contributed to slowing the growth of healthcare costs and improving the quality of care.

In November 2024, the Biden-Harris Administration finalized a rule that expanded access to health coverage for Deferred Action for Childhood Arrivals (DACA) recipients under the ACA. This rule allows DACA recipients to enroll in private health insurance plans through the health insurance marketplaces created by the ACA, such as HealthCare.gov. Previously, DACA recipients were excluded from the ACA due to their immigration status. This expansion of coverage is expected to benefit around 500,000 DACA recipients across the nation, who were previously three times more likely to be uninsured than the general US population.

However, the expansion of ACA coverage to DACA recipients has faced legal challenges from a group of states, including Texas, arguing that it would cause financial harm. As of November 2024, no decision has been made in the case, and DACA recipients remain eligible to purchase health insurance under the ACA.

Frequently asked questions