Green Card Life Insurance: What's The Deal?

Green card holders are considered permanent residents of the USA and are therefore eligible for life insurance coverage. While the process of obtaining life insurance as a non-US citizen can be challenging, green card holders are usually treated similarly to citizens by insurance companies. This means that green card holders can expect to have the same options for life insurance coverage as citizens.

What type of life insurance can green card holders get?

Green card holders are considered permanent residents of the USA and are therefore eligible for life insurance. The type of life insurance they can get depends on their budget, family circumstances, and needs.

There are two main types of life insurance: term life insurance and permanent life insurance. Term life insurance is ideal for those who have children, a mortgage, and need budget-friendly coverage. It is more affordable than permanent life insurance because it is temporary coverage. Most term policies include a conversion option, so if you need permanent coverage later on, you can convert it easily.

Permanent life insurance helps you protect your loved ones no matter when you die. It leaves your family money for funeral and end-of-life expenses, such as medical bills and estate taxes. Permanent insurance options are more expensive because the coverage lasts a lifetime, and you have features like cash value accumulation.

Green card holders can get either term or permanent life insurance, depending on their preferences and requirements.

What are the eligibility requirements for green card holders?

Green card holders are considered permanent residents of the USA and are therefore eligible for life insurance coverage. However, there are certain requirements that must be met to qualify for life insurance as a non-US citizen. Here are the eligibility requirements for green card holders:

• Ability to pay policy premiums in US funds: Non-citizens must be able to pay their life insurance policy premiums using US funds. This typically requires having a US bank account.
• Social Security Number or Tax ID: A Social Security Number or Tax Identification Number (TIN) is usually required by insurance providers for administrative and tax purposes.
• Completion of application, medical exam, and policy delivery in the US: All aspects of the insurance buying process, including the application, medical exam, and policy delivery, must be completed while the applicant is in the United States.
• Valid green card: Green card holders will need to provide a photocopy of their valid green card to the insurance company to confirm their permanent resident status.
• US residential address: A residential address in the US is typically required to obtain life insurance, as this is needed for both correspondence and legal requirements.
• Substantial presence in the US: Most life insurance companies require non-citizens to have lived in the US for at least a year, with some carriers requiring up to five years of residence to offer the best rates.
• Significant interest in the US: Applicants need to demonstrate ties to the US, such as owning a home or business, being married to a US citizen, or having US investments.

While green card holders have an easier time obtaining life insurance compared to non-permanent residents, it is important to note that not all insurance companies offer the same level of flexibility when it comes to non-citizens. Working with a broker who has access to multiple insurance carriers can increase the chances of finding the right coverage.

What is the application process for green card holders?

Green card holders are considered permanent residents of the USA and are therefore eligible for life insurance coverage. The application process for green card holders is similar to that of US citizens, with only a few extra steps. Here is a step-by-step guide on how to apply for life insurance as a green card holder:

• Choose a suitable insurance company: Not all insurance companies offer the same policies for green card holders, so it is important to research and compare different companies to find the best deal. Some popular options for green card holders include Lincoln Financial, Transamerica, and Guardian.
• Gather the required documents: As a green card holder, you will need to provide proof of your permanent resident status, such as a valid green card, state-issued ID, or driver's license. Additionally, you will need to provide a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Other documents that may be required include proof of income or assets, and a completed foreign resident questionnaire.
• Complete the application: The first step in the application process is to fill out basic information about your health and finances. As a green card holder, you may need to complete additional paperwork related to your immigration status and documentation.
• Undergo a medical exam: Most life insurance policies require a medical exam or a medical questionnaire. The insurance company will inform you of the specific requirements based on your overall profile.
• Wait for the insurer's review: After submitting your application and completing the medical exam, the insurer will review your application. This process can take up to four to six weeks.
• Sign the policy documents and pay the first premium: Once your application is approved, you will need to sign the policy documents and pay the first premium to activate your coverage. Make sure to carefully review all the terms and conditions of the policy before signing.
• Maintain your coverage: It is important to keep your green card valid and up-to-date to avoid any issues with your life insurance policy. Additionally, ensure that you pay your premiums on time and from a US bank account to maintain your coverage.

By following these steps, green card holders can successfully apply for and obtain life insurance coverage in the United States.

What are the best life insurance companies for green card holders?

Green card holders can get life insurance in the US, and are treated similarly to US citizens by insurance companies. Permanent residents with a green card have the same options for life insurance coverage as US citizens.

Lincoln Financial

Lincoln Financial offers a diverse array of life insurance policies, including competitive no-med 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 for marijuana users.

Prudential

Prudential is one of the oldest life insurance companies, with nearly four million policyholders and 150 years of experience. They offer competitive coverage options for seniors, as well as people with some of the most common medical conditions, including asthma, depression, and fibromyalgia. Prudential accepts applications from many different kinds of visa holders, as long as they've been a US resident for over a year.

Transamerica

Transamerica is one of the oldest and largest life insurance companies, with over 12 million active accounts. They offer affordable rates for almost every age, and you may even be able to skip the medical exam. Transamerica is a good choice for those who don't have a Social Security Number or Taxpayer Identification Number.

Quotacy

Quotacy is an independent broker with access to product offerings from over 25 of the nation's top life insurance companies. Their agents can help you compare guidelines from multiple insurers at the same time and find the best coverage for your needs.

Patriot America Insurance

Patriot America Insurance is a good option for green card holders over 65 years who are ineligible for Medicare. It is also a good short-term option for those under 65 who are waiting to become eligible for US domestic health insurance plans.

Safe Travels USA Insurance

Safe Travels USA Insurance is another good option for green card holders over 65 who are ineligible for Medicare. It also covers those under 65.

Diplomat America

Diplomat America is a good choice for green card holders over 65 who are ineligible for Medicare.

Can green card holders get health insurance?

Yes, green card holders are eligible to purchase health insurance in the United States. The Affordable Care Act (ACA) has significantly expanded access to health coverage for many individuals, including green card holders.

Lawfully present immigrants may either enroll in coverage sponsored by their employer or explore other individual and family coverage options. Like US citizens, the cost of health insurance for nonUS citizens can vary depending on the level of coverage they select, so it’s important to consider potential future care needs and personal budget when choosing a health plan.

The Health Insurance Marketplace

Those seeking private green card health insurance can enroll in a plan directly with a health insurer or through the ACA Health Insurance Marketplace. The Marketplace was established by the ACA to help individuals and families access affordable health insurance. The Marketplace helps you compare plans based on insurer, price, benefits, and networks, to make the best coverage decision for you and your family. Generally, individuals and families must purchase coverage through the Marketplace during the annual Open Enrollment Period that typically runs from November 1 through January 15. However, individuals and families can enroll in a Marketplace health plan outside the Open Enrollment timeframe if they have a qualifying life event. Becoming a lawful permanent resident is one such event and qualifies the individual for a Special Enrollment Period (SEP).

Upon receiving a green card, individuals should enroll in health insurance, whether through their employer or the Marketplace, within their 60-day SEP window.

Medicaid Health Insurance for Green Card Holders

Medicaid and the Children’s Health Insurance Program (CHIP) are state-run programs that provide health insurance coverage at little to no cost for individuals and families with limited income and resources. Green card holders may qualify for Medicaid based on their income, household size, and other factors. The eligibility criteria vary by state, so it's important for green card holders to check their specific state's Medicaid guidelines.

Lawfully present immigrants must typically wait five years after receiving “qualified immigration status” before becoming eligible for Medicaid. However, many still qualify for Marketplace coverage within the five-year waiting period and may also be eligible for health insurance subsidies.

Health Insurance Subsidies for Green Card Holders

Green card holders who are not eligible for Medicaid may still qualify for income-based health insurance subsidies that help individuals and families with lower incomes save on healthcare costs. There are two types of health insurance subsidies available under the ACA: Advanced Premium Tax Credits and Cost Sharing Reductions (CSRs). These subsidies lower the amount you pay for deductibles, copays, and coinsurance, as well as out-of-pocket maximums.

Frequently asked questions