Foreign Nationals And Life Insurance: Carrier Options Explored

Foreign nationals seeking life insurance in the US may face challenges, particularly non-permanent residents and visa holders. However, some carriers do offer coverage to foreign nationals with ties to the US, such as marriage to a US citizen, ownership of a US business, or US real estate. These carriers may require additional documentation and assessments to analyse the risk profile of the applicant. Examples of companies that offer life insurance to foreign nationals include Transamerica Financial Life Insurance Company, Guardian, and AIG – Corebridge Financial.

Eligibility for foreign nationals

Foreign nationals with ties to the United States may consider U.S.-based life insurance policies to ensure financial security for their loved ones. The U.S. insurance market is stable and reliable, providing confidence and convenience, especially for those with international assets. As the largest insurance market in the world, U.S. carriers offer a broader array of products and more competitive pricing than other markets.

When underwriting a life insurance policy, carriers typically look at foreign nationals who fall into one of two IRS classifications: resident or non-resident aliens. Carriers will generally look at the following when determining coverage and rates for a foreign national:

Documentation and Identification

Insurance companies typically require different forms of documentation for resident aliens and non-resident aliens to verify their immigration status and residency. For example, resident aliens may need to provide their green card or proof of lawful permanent residency. In contrast, non-resident aliens may need to present evidence of their nexus to the U.S., such as business or real estate documents.

Duration of Stay

Insurance companies may inquire about the length of time foreign nationals plan to stay in the U.S., as this can affect the policy's terms and coverage options. For example, someone who spends most of the year in the U.S. may be offered different coverage than someone who visits infrequently.

Country of Citizenship

Where your citizenship is from can affect life insurance underwriting, as some countries are restricted. Life insurance companies publish lists of countries that are acceptable for coverage and those that are not. Some countries are considered too dangerous to insure, while others prohibit their citizens from owning American life insurance. Additionally, some life insurance companies categorize countries into A, B, C, and D categories, representing different risks and pricing.

Visa Status

Whether you are a green card holder, visa holder, or have another immigration status, there are life insurance options for non-United States residents. A green card, also known as a permanent resident card, allows you to live and work in the United States permanently. Most insurers follow the same rules for conditional and permanent green cards. Temporary green card holders or Non-Resident Aliens living in the U.S. for 10 months or more per year are eligible for coverage.

Other Factors

In addition to the above, carriers may ask about your travel history, including the countries you visit each year and whether they are on any prohibited lists. They may also consider other standard factors such as medical history, lifestyle habits, occupation, and financial history.

It's important to note that not all foreign nationals are eligible for life insurance in the U.S., and the requirements and restrictions can vary by company. Some carriers restrict the types of life insurance plans and riders available to foreign nationals. Additionally, certain occupations may not easily obtain coverage.

Country classifications

Insurance companies categorize countries into different classes, such as A, B, C, and D, each representing varying levels of risk and pricing. These classifications are based on factors such as economic stability, political stability, and U.S. trade sanctions. For example, countries or regions facing economic or political instability or U.S. trade sanctions are often classified as Class C, indicating a higher risk and more challenging insurance landscape.

Some countries are deemed too dangerous for insurance providers to offer coverage. Additionally, specific nations have restrictions preventing their citizens from owning American life insurance, even if they would otherwise meet the eligibility criteria.

Impact of Country Classifications on Foreign Nationals

The country classification of their nation of origin significantly influences foreign nationals' eligibility for life insurance in the United States. Carriers consider the duration of stay, with longer stays in the U.S. potentially impacting policy terms and coverage options. Foreign nationals with long-term residency in the U.S. may be more favourable to insurance carriers.

Furthermore, travel history can also affect an individual's risk assessment. For instance, a person from a Class A country who frequently visits a Class C country may be deemed higher risk than someone who does not travel to such destinations.

Eligibility and Requirements for Foreign Nationals

To be eligible for life insurance in the United States, foreign nationals must typically meet specific requirements, including visa status, net worth, coverage requirements, and primary citizenship from an acceptable country. Carriers generally seek to offer universal or whole life insurance products to foreign nationals.

While each carrier has its own underwriting policies and requirements, they commonly request documentation and identification to verify immigration status and residency. Resident aliens may need to provide a green card or proof of permanent residency, while non-resident aliens may need to present evidence of their nexus to the U.S., such as business or real estate documents.

Documentation and identification

When it comes to documentation and identification for foreign nationals seeking life insurance in the US, there are several factors to consider. Firstly, insurance companies typically require different forms of documentation for resident and non-resident aliens to verify their immigration status and residency. Resident aliens may need to provide proof of lawful permanent residency, such as a green card, while non-resident aliens may need to present evidence of their nexus to the US, such as business or real estate documents.

It's important to note that eligibility for life insurance as a non-US citizen often depends on your country of origin. Insurance companies publish lists of approved countries and assess the political and social stability of your home country to determine eligibility. Some countries are considered too dangerous to insure, while others have restrictions prohibiting citizens from owning American life insurance. Additionally, some companies categorise countries into A, B, C, and D categories, representing different risks and pricing.

For undocumented immigrants, options tend to be limited, but coverage may still be possible with specific requirements, such as proof of residency in the US, evidence of income or employment, and a taxpayer identification number or Individual Taxpayer Identification Number (ITIN). Foreign nationals with a demonstrated tie or connection to the US may have more options.

In terms of identification, most insurance companies will require proof of identity, such as a copy of a passport or visa application completed in the US. Some carriers may also require proof of entry to coincide with the application. Medical examinations are typically required, and certain carriers may allow these to be done at a US embassy or consulate in the applicant's country.

Furthermore, insurance companies may inquire about the duration of stay for foreign nationals, as this can affect the policy's terms and coverage options. Carriers may prefer individuals who plan to stay in the US for longer periods. Additionally, foreign nationals who frequently travel to high-risk countries may be considered higher risk by insurance carriers.

Payment methods

Bank Transfers or Direct Deposits

This is a common and convenient method for paying premiums. Policyholders can set up recurring payments or make one-time transfers from their bank accounts to the insurance carrier. This method ensures timely payments and helps maintain policy coverage without interruptions.

Credit or Debit Cards

Major credit and debit cards, such as Visa, Mastercard, or American Express, are widely accepted by insurance carriers. This payment method offers flexibility and convenience, allowing policyholders to make payments online, over the phone, or through a mobile app, depending on the carrier's payment system.

Checks or Money Orders

Some insurance carriers may also accept checks or money orders as a form of payment. This option might be preferable for those who do not wish to provide their bank account or card information directly to the insurance company. Policyholders can send checks or money orders by mail or deliver them in person to the carrier's office or authorized payment centers.

Online Payment Platforms

With the advancement of technology, many insurance carriers offer online payment platforms or portals on their websites. These platforms often allow policyholders to create accounts, manage their policies, and make secure payments using various methods, including bank transfers, credit or debit cards, and even digital wallets.

Payment Through Agents or Brokers

In some cases, foreign national life insurance policies may be purchased or renewed through independent agents or brokers. These intermediaries can guide individuals through the process, provide advice, and facilitate payments on their clients' behalf to the insurance carriers.

It is important to note that the availability of these payment methods may vary depending on the insurance carrier, the specific policy, and the country of residence. Additionally, foreign nationals should consider any applicable taxes or fees associated with their chosen payment method, especially when making international transactions. It is always advisable to review the payment options offered by different carriers and choose the one that best suits their needs and ensures timely and secure payments.

Carriers and brokers

When it comes to carriers, each insurance company has its own underwriting policies and requirements. Some carriers may have more stringent criteria, while others may offer more flexible options for foreign nationals. It is important to research and compare different carriers to find the one that best suits an individual's needs. Factors such as residency status, visa type, duration of stay, and country of origin can all influence eligibility.

One notable carrier mentioned in this context is Transamerica, which has over 25 years of experience in the foreign nationals market. They offer both term and permanent life insurance options, catering to qualified residents of specific country categories. Other carriers recommended for foreign nationals include American General and Lincoln National.

Carriers often assign country codes to assess risk, and they may differentiate between cities and regions within a country. For example, a metropolitan area like Beijing might be considered lower risk than rural areas within the same country. Additionally, carriers consider standard factors such as medical history, lifestyle habits, occupation, and financial history.

This is where brokers come in. Brokers are insurance professionals who can guide foreign nationals through the complex process of selecting the right carrier and policy. They are well-versed in the eligibility requirements of different carriers and can help individuals navigate the specific documentation and identification needed. Brokers can also advise on the types of coverage available, the amount of coverage needed, and the best way to structure a policy tailored to the individual's circumstances.

In conclusion, foreign nationals seeking life insurance in the United States should carefully research carriers and consult with knowledgeable brokers. By understanding the eligibility criteria and requirements of different carriers, foreign nationals can make informed decisions about their financial security and ensure their loved ones are protected.

Frequently asked questions