Are you currently living in the US and are trying to secure a life insurance policy? Have you been turned down due to your residency status? Well, we are here to tell you that there are options to secure final expense for foreign nationals.
In this guide, we would outline some of the basics of what is a final expense life insurance, the process to secure a policy, eligibility, and cost. Our goal is to summarize everything you need to know when considering this type of life insurance.
Topics we would cover
- What is a final expense policy
- What is the maximum coverage available
- Can I secure final expense policy if I am not a permanent resident or US citizen
- Do I need a medical exam
- How long does the process take
- What information would the company need
- How much does it cost
- What if I don’t qualify
We wanted to touch on some of the most common questions our clients have asked us. However, if there is a topic or a question we didn’t cover, feel free to reach out to us directly. You can do so by filling out the instant quote form on the page, leave us a comment below, or simply give us a call. We specialize in life insurance for foreign nationals.
Ok, let’s dive in….
What is a final expense policy
We felt this is a good place to start. We want to touch on what exactly is a final expense policy and how it could help you and your family.
In a nutshell, a final expense policy is typically whole life insurance. It is designed to offer a smaller death benefit and it is fairly easy to secure. Upon your death, your beneficiary needs to submit a claim form along with the death certificate. Your family would receive the money they need to cover the cost of a funeral, a possible shipment of your body abroad, and other expenses that might arise. People oftentimes refer to the final expense as burial insurance. There is no difference between the 2 terms.
What is the maximum coverage available
It really dependents on the company. Most types of policies are between $5,000 to $30,000 in coverage. If you need additional coverage, we can look into additional companies or other insurance products. We’ve dedicated several articles on life insurance for visa holders or without a green card.
Can I secure final expense policy if I am not a permanent resident or US citizen
Yes, you can. There are companies that offer final expense to foreign nationals. Unfortunately, not every company would do that. In fact, many companies would ask on the application whether you do have a permanent card or are US citizens. Some would take it even further and want you to be in the US for a period of at least 2 years, even if you have a green card.
We share this with you to stress out how important it is to work with a broker who is familiar with the carrier’s guidelines.
However, in order to qualify, companies still have some requirements. The biggest one is that you need to have a valid Social Security Number or an ITIN. We’ve created a separate guide on final expense without a green card.
Just for clarification, ITIN stands for An Individual Taxpayer Identification Number and it is issued by the IRS. Typically, the application process is fairly simple.
If you don’t have either, please skip to the last section of the article. We’ve outlined the possible solution.
Do I need a medical exam
No, you don’t need a medical exam to secure a final expense policy. In fact, the process is so simplified that you won’t even be required to submit medical records from your doctor.
The carrier would need to run a third-party data verification in order to approve/decline your application.
Now, this is a good time to mention that even though there will not be a medical exam, you still need to medically qualify for the policy. In other words, the companies would be asking you medical questions, past history, and be running your prescription history.
How long does the process take
As we mentioned, financial expense policies are considered a type of simplified issue insurance. Based on the company, you can a decision on the same date or within 48 hours. In fact, we contracted with a carrier that would ask you to complete a phone interview in issue a decision while on the phone.
Correct, you can secure the peace of mind that your family is financially protected in a matter of minutes.
What information would the company need
Every company has it’s own set of underwriting questions, however on average they fall within the following 8 categories. We would touch briefly on each one as most are self-explanatory. If you need any additional information or would like us to review your personal situation, simply reach out to us.
You need to be in the US in order to secure the coverage
This is one of the very first requirement a carrier would have when reviewing an application. Even though, you are able to secure the policy from the comfort of your home and sign for it electronically, you need to be in the US.
Do you have an ITIN or an SSN
This is a key component in qualifying for coverage. Life insurance carriers view that as a form of verification. Please advise us if you do not have a valid SSN or an ITIN.
Country of origin
Due to government regulations, the country of origin matters. In some instances, companies are prohibited from offering coverage.
Intend to remain in the US
Some companies would ask if you intend to remain in the use or change your country of residence. If this is a question on the application, please answer truly and honestly. We would ask you that during our initial conversation to match you with an appropriate carrier.
Insurance paid from a US bank account
This is a key requirement. The funds to pay for the policy needs to be in the US and come out of a US bank account. Keep in mind that if paying monthly, most if not all carriers will require an automatic deduction. In some instances, you are able to set up a semiannual or annual payment.
There is an age restriction to purchase or set up a final expense policy. Every carrier has it’s own maximum age that they would accept new policyholders. When discussing a final expense for foreign nationals, that age is 80.
How is your overall health? The company will be asking questions pertaining to current and past medical history. They would like to know if you are currently being treating for a condition and the names of any medications. Please have these handy, as in some instances companies have a list of medications that are grounds for immediate denial.
Who will be the owner of the policy
As you are probably aware, an owner of a policy is the person who can make changes to the insurance. He or she could name and change the beneficiary and could also be responsible for the payment. In most instances, the insured is the owner of the policy. However, sometimes an adult child could own a policy on the parent. We see this quite often when setting up final expense insurance.
What is the cost of insurance
Cost is an important factor when considering insurance. We understand that everyone has a budget and we strongly believe that the insurance needs to make financial sense. In other words, purchasing a policy that is unaffordable in the long run, its not in your best interest. You want to ensure that you have the coverage you need while paying a price that you can afford. Unfortunately, we’ve worked with many clients who secured a policy that they can not afford and end up canceling it shortly after. This leaves their families financially unprotected.
Some coverage is better than none!
Below are sample rates for males based on different ages. The rates are for non-tobacco class and are subject to change. These are actual rates from an insurance carrier and are for demonstrative purposes.
Below are sample rates for females based on different ages. The rates are for non-tobacco class and are subject to change. These are actual rates from an insurance carrier and are for demonstrative purposes.
What if I don’t qualify
If you do not have a Social Security Number or could not secure policy due to a health condition, we have an option. It is called a guaranteed issue life insurance. Again, not every company would offer it to foreign nationals or someone who is not a green cardholder.
We’ve dedicated an entire article on the coverage, policy structure, and availability. Feel free to review our guide to a guaranteed issue life insurance.
While planning for your final expense may not be the most pleasant activity, it is without a shadow of a doubt an important one. You want your family to have the security of knowing that they can easily cover the cost of a funeral and not have to worry about how they will split the bill. Please reach out to us directly. We have access to options to secure final expense for foreign nationals and we strive to make the process as easy and straight forward as possible.
We hope you find this helpful and we look forward to working with you!