Life Insurance For Us Non-Residents: What's Possible?

Foreign nationals can get life insurance in the US with the right qualifications. Non-US citizens can get life insurance depending on their status. For example, valid green card holders and some visa holders can qualify. However, not all insurance companies are flexible when it comes to life insurance for non-citizens. The process of getting a life insurance policy can be more challenging for non-permanent residents, and their options are limited.

Visa and residency requirements

The type of visa you hold as a non-US citizen will determine your eligibility for life insurance in the US. While green card holders are considered permanent residents and have the same options for life insurance as US citizens, those with other visa types may find it more challenging to get coverage.

The most commonly accepted visas for life insurance coverage in the US 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 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 typically not accepted, but a few companies may consider them if stringent requirements are met.

If you are a non-resident foreign national with significant business, financial, and family ties to the US, you may also qualify for life insurance coverage. These policies are usually specialised and designed to help individuals with complex international affairs.

Regardless of your visa type, there are some general requirements that must be met to obtain life insurance in the US:

• Ability to pay policy premiums with US funds from a US bank account
• Social Security number or Tax ID
• Application, medical exam, and policy delivery must be completed in the US
• US residential address
• Proper identification, such as a valid visa, driver's license, or passport

Documentation needed

The documentation you will need to provide as a non-US resident will depend on your specific situation. Here is a list of documents that you may be required to present:

• Passport and visa documents: You will need to provide proof of your identity and visa status. This includes your passport and any relevant visa documents.
• Proof of residency or legal status: This can include a green card, valid visa, or state-issued ID such as a driver's license.
• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN): You may be asked to provide your SSN or ITIN for administrative and tax purposes. If you do not have either of these, you may need to provide a W-8 form.
• Proof of US ties: Examples of this include a property deed, employment contract, or other documents that demonstrate your connection to the US.
• Proof of income or assets: Life insurance carriers will want to see that you have the financial ability to pay the policy premiums.

It is important to note that your visa must be up-to-date and valid when purchasing life insurance. Carriers will also require additional documentation and assessments to analyse your risk profile accurately.

Additional Documentation for Non-Resident Foreign Nationals with US Ties

If you are a non-resident foreign national with significant business, financial, and family ties to the US, you may also be required to provide additional documentation during the application process. This can include:

• Proof of a significant connection to the US: This can include real estate or business ownership, equities, or other tangible and non-tangible assets in the US.
• Documentation of US-based assets: The maximum coverage offered will typically be based on the value of your US-based assets.
• Completion of the application process in the US: The application must be completed and signed while you are physically present in the US.

Medical exams

Most life insurance policies require some form of medical underwriting to evaluate an applicant's health and insurance risk. In many cases, this will involve a medical exam, but some providers may only require you to answer health-related questions or provide medical records. If you are a non-US citizen, you should be aware that the medical exam must be completed in the US, and it could take months for the process to be completed.

The medical exam for life insurance is similar to an annual physical. A medical professional will measure your height, weight, blood pressure and cholesterol, and will usually take a blood, urine and saliva sample.

If you are applying for life insurance as a non-US citizen, you may be able to skip the medical exam entirely by purchasing a no-medical-exam policy. These policies tend to be more expensive than those that do require an exam, so if you are young and healthy, you may want to opt for a policy with full medical underwriting.

Some providers that offer no-medical-exam policies include:

• AARP
• Country Financial
• Nationwide

Country of origin

The country of origin of a non-US citizen plays a crucial role in determining their eligibility and rating for life insurance in the United States. Here are some key points to consider regarding the impact of an individual's country of origin:

• Country-Specific Restrictions: Some countries have regulations prohibiting their citizens from purchasing life insurance outside their country of origin. For example, countries like Croatia, Greece, Hungary, Japan, Panama, Poland, Switzerland, and Uruguay restrict their citizens from buying life insurance policies from foreign companies. Therefore, if you are a citizen of one of these countries, you may not be eligible for US life insurance. It is important to check the regulations of your country of origin before applying for US life insurance.
• Risk Classification: Life insurance companies assign letter ratings (A, B, C, or D) to countries based on their risk profiles. These ratings determine the ease of obtaining coverage and the cost of the policy. Obtaining life insurance from the US if you are from an A-rated country is relatively straightforward. However, if you are from a D-rated country, such as Afghanistan, Cambodia, Haiti, Iraq, or Lebanon, obtaining coverage could be extremely challenging or even impossible.
• Underwriting Class: Your country of origin will not only affect your eligibility for US life insurance but also the underwriting class you qualify for. The underwriting class determines the cost and availability of coverage. Individuals from countries with higher risk ratings will likely face higher premiums or limited coverage options.
• US State Department Restrictions: Insurers adhere to rules set by the US State Department regarding country-specific restrictions. These restrictions are the same across all insurance companies and are subject to change based on federal regulations. Therefore, even if a particular insurer accepts applications from your country of origin, there may be instances where the US State Department restrictions override and prevent you from obtaining coverage.
• International Travel and Residency: If you are a non-US citizen with significant international travel or residency outside the US, your country of origin and the duration of your stays can impact your eligibility. Some insurers may require you to spend the majority of your time in the US or have a minimum residency period in the country before approving your application.
• Medical Records and Examinations: When applying for US life insurance as a non-US citizen, you may be required to undergo a medical examination in the US. Additionally, providing medical records from your country of origin can be advantageous. These records should be translated into English and cover at least the past five years of your medical history.

In conclusion, when considering US life insurance as a non-US citizen, it is essential to research the specific restrictions and requirements pertaining to your country of origin. The eligibility, underwriting class, cost, and availability of coverage can vary significantly depending on the country in which you hold citizenship.

Policy options

The policy options available to non-US citizens will depend on their residency status and type of visa. Here are some of the common types of visas that are accepted by life insurance companies:

• E – employer-sponsored immigrant visa
• H1B – temporary work visa for someone in a specialty occupation
• K – nonimmigrant 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

Green Card Holders

Green card holders are considered permanent residents and have the same options for life insurance coverage as US citizens. They are eligible for the best rates and face very few additional hurdles during the application process. The only extra step is usually to provide a photocopy of their green card to the insurance company to confirm their immigration status.

Visa Holders

Visa holders may have more documentation requirements and hurdles during the application process. Some life insurance companies only accept green card holders, not visa holders. Visa holders may also face higher premiums due to higher perceived risk.

Non-Resident, Non-Citizens with US Ties

High-net-worth foreign nationals who are non-residents but have significant business, financial, and family ties in the US may also qualify for life insurance coverage. These policies are typically specialized and designed to help internationals manage their complex affairs. There are fewer policy options available, and premiums are typically higher due to perceived risk and underwriting complexity.

Expatriates

American expatriates living abroad will have a more limited range of options as not all US-based life insurance companies offer policies to expatriates. Some companies offer policies with optional "expatriate riders" that are specifically designed for American citizens living abroad and may provide advantages like currency exchange protection or repatriation benefits. However, even expatriate policies may have certain travel restrictions.

Frequently asked questions