Daca And Life Insurance: Can You Sell?

Life insurance is a crucial financial safety net for individuals with families or other dependents. While it may be more challenging for non-US citizens to obtain life insurance, it is not impossible. Visa holders, green card holders, and other foreign nationals living in the US are eligible for life insurance coverage, although the specific requirements and options available depend on factors such as visa type, length of stay, and country of origin. DACA recipients, for example, can obtain life insurance by providing their social security number or ITIN, work authorization number, and determining the type of life insurance needed. It is important to note that not all insurance companies offer the same level of flexibility, and working with a broker can help individuals find the best coverage options for their specific circumstances.

DACA recipients can obtain life insurance

DACA (Deferred Action for Childhood Arrivals) recipients can obtain life insurance, although it is true that many carriers will not insure them. However, several carriers do offer life insurance to DACA recipients, and there are options for both term and permanent life insurance.

To obtain life insurance as a DACA recipient, you will need your social security number or ITIN (Individual Taxpayer Identification Number), your work authorization number, and to determine the type of life insurance you need (term or permanent). You will then need to go through the carrier's underwriting process, which may or may not include a paramedical exam.

Some carriers offer a simplified underwriting process, which involves answering a few questions about your health and lifestyle and submitting the application. This process is very quick and easy, but there are some drawbacks. The term life insurance offered by these carriers is only for 20 years, with a maximum death benefit of $250,000, and the premiums can be higher compared to other providers.

Other carriers offer more robust coverage but with a longer underwriting timeframe. These carriers can offer coverage of over $250,000, 30-year terms, and healthy rates. They may or may not require a paramedical exam.

It is important to note that life insurance premiums are not higher for DACA recipients; carriers do not increase rates based on DACA status.

Eligibility requirements to receive DACA

To be eligible for DACA, the following criteria must be met:

• Be under the age of 31 as of June 15, 2012 (i.e., date of birth is on or after June 16, 1981)
• Arrived in the U.S. before turning 16
• Have continuously resided in the U.S. from June 15, 2007, to the present (brief absences from the U.S. for humanitarian reasons will not be included)
• Entered the U.S. without inspection or fell out of lawful visa status before June 15, 2012
• Any lawful status after June 15, 2012, must have expired before the initial application for DACA
• Be physically present in the U.S. on June 15, 2012, and at the time of making the request for consideration of deferred action with USCIS
• Be currently in school, have graduated from high school, obtained a GED, or been honourably discharged from the Coast Guard or Armed Forces
• Have not been convicted of a felony, a significant misdemeanour (as described in 8 CFR 236.22 [b][6]), or more than three misdemeanours of any kind
• Do not pose a threat to national security or public safety

Applicants will need to provide substantial documentary evidence of the above criteria and complete a biographic and biometric background check.

Life insurance options for DACA recipients

DACA (Deferred Action for Childhood Arrivals) was signed by President Obama in 2012. To be eligible for DACA, applicants must meet specific requirements, including being under 31 as of June 15, 2012, having arrived in the United States before their 16th birthday, and having continuously resided in the country since June 15, 2007.

As a DACA recipient, you may be wondering about your options for life insurance. While some carriers will not insure DACA recipients, there are indeed several carriers that do. In this article, we will outline the process for obtaining life insurance as a DACA recipient and provide information on the types of life insurance available to you.

How DACA Recipients Can Obtain Life Insurance

To obtain life insurance as a DACA recipient, you will need the following:

• Your Social Security Number or ITIN (Individual Taxpayer Identification Number)
• Work authorization number
• Determination of the type of life insurance you need (term or permanent)
• Completion of the carrier's underwriting process

Life Insurance Carriers That Accept DACA Recipients

Several carriers provide term life insurance and permanent life insurance, such as whole life or index universal life insurance, to DACA recipients. Here are some options to consider:

Simplified Underwriting Process

One carrier offers a simplified underwriting process, requiring applicants to answer 4-5 questions about their health and lifestyle and submit the application. This carrier offers a 20-year term with a death benefit of up to $250,000 for term life and $100,000 for permanent life insurance. However, their premiums tend to be higher, as they are fixed at a Table 4 (substandard) rate.

More Robust Coverage with a Longer Underwriting Timeframe

Other carriers provide more comprehensive coverage, with higher death benefits (over $250,000), 30-year terms, and competitive rates. These carriers may or may not require a paramedical exam. Additionally, they offer living benefits at no extra cost.

Life insurance carriers do not increase rates specifically because of an individual's DACA status. Premiums are based on standard factors and are the same for everyone.

As a DACA recipient, you have several options for obtaining life insurance to protect your loved ones. While some carriers may not insure DACA recipients, there are indeed many others that do. It is important to shop around and compare different carriers' offerings to find the best coverage for your needs.

Life insurance carriers that accept DACA recipients

While many life insurance carriers will not cover DACA recipients, several do.

One carrier offers a simplified underwriting process. All you need to do is apply, answer 4 or 5 questions about your health and lifestyle, and submit the application. You can even fill out and submit the application yourself! The carrier reviews your application, and if everything checks out, you’ll have life insurance in a few days to a week. Sometimes, the carrier will require a phone interview if they have questions about your application. However, this carrier only offers a 20-year term with a maximum death benefit of $250,000, and its premiums can be higher compared to other carriers.

Other carriers offer more robust coverage but have a longer underwriting timeframe. These carriers can insure you well above $250,000, provide a 30-year term, insure you at healthy rates, and provide living benefits for no additional cost. You have your choice of term coverage and permanent products like whole life and an IUL. The carrier may require a paramedical exam, but most of the time, they do not.

There are also a couple of other carriers that could fit depending on the specifics of your situation.

Limitations for non-US citizens when buying life insurance

While non-US citizens can get life insurance in the United States, there are some limitations to be aware of. Here are some of the key limitations and requirements:

• Visa requirements: The type of visa you hold will impact your ability to obtain life insurance. Some visas that are commonly accepted by life insurance companies include the E visa (employer-sponsored immigrant visa), H1B visa (temporary work visa for specialty occupations), K visa (fiancé/e of a US citizen), L visa (intracompany transferee), and O visa (extraordinary ability or achievement). Student visas are typically not accepted.
• Residency requirements: Most life insurance companies require non-US citizens to have lived in the US for at least one year, although some may require up to five years of residency.
• Documentation: In addition to a valid visa, you will need to provide documentation such as a Social Security number or Tax Identification Number, proof of US residency or legal status (e.g., green card, state-issued ID), and proof of income or assets.
• Medical exam: A medical exam or questionnaire is typically required as part of the life insurance application process.
• US bank account: You will need a US bank account to pay policy premiums.
• US residential address: A residential address in the US is typically required to obtain life insurance.
• Country of residence: Your country of residence may impact your eligibility for life insurance. Some countries have restrictions on purchasing insurance outside of your country of origin.
• Limited options: Non-US citizens may have fewer insurance company options and may need to shop around to find a provider that accepts their visa type.
• Higher premiums: Premiums for non-permanent residents are often higher due to the perceived additional risks.
• Underwriting process: The underwriting process for non-US citizens may be slower and more involved, as insurance companies need to assess additional risk factors.

Frequently asked questions