Is life insurance with an ITIN more expensive
It is a common question we receive during the initial conversion: is life insurance with an ITIN more expensive? In this post, we would not only answer the questions, but we would also show the rates amongst several companies and go over the qualifications.
We’ve divided the topic into several different categories. Feel free to go over the information or simply reach out to us directly if you have any specific questions. Our goal is to make life insurance for foreign nationals not only possible but easy to obtain.
Table of content
Life insurance options and requirements for coverage with an ITIN
- Can you get life insurance with an ITIN
- Will every company approve
What are the life insurance options with an ITIN and what are the requirements?
We felt it is important to take a second and cover this briefly, as it will provide a bit more clarity when it comes to prices.
First off, we would like to let you know that you CAN buy life insurance with ITIN (Individual Taxpayer Identification Number). There are some limitations, that we would outline below.
The big thing to keep in mind is that not every company would approve an application with an ITIN. Often times carriers would need proof of visa and/or certain immigration status to move forward with the underwriting process. Such documents may not be available for several reasons. For example, a client may be undocumented or his or her visa may have expired. This could leave many families with limited options when it comes to life insurance.
Unfortunately, many companies still underwrite a client’s immigration status not his or her health and lifestyle.
We’ve covered in depth what are the requirements and process to secure life insurance coverage without an SSN in this guide. What we want you to take away is that when trying to find life insurance with an ITIN, it is essential to work with an agency specializing in life insurance for foreign nationals.
Price and examples
Now, let’s turn our attention to the main topic of this article: is life insurance with an ITIN more expensive?
The answer is NO, it is not, but it depends. Wait, what?
Let us elaborate: you would not pay a surcharge or additional fee just because you do not have a social security number. However, you could be limited in the selection of carriers and or products available to you. In other words, you might not be able to apply with the lowest carrier on the market when it comes to life insurance.
Below we would look at some an example to demonstrate what we mean.
Meet Anthony. He is 35 years foreign national. Anthony has been in the US for years, intends to permanently stay, but does not have a valid visa. He has an ITIN, rents his home, and pay taxes. Antony is in preferred plus health and does not smoke. He would like to secure a $250,000 term insurance to protect his wife and growing family.
For some companies, this would be considered enough financial ties and they would offer him coverage. While for others, he would be ineligible for insurance.
Let’s look at the rates below:
Now, this is a good time to mention that with certain visa types, such as K, L1, H1B, and O-1, an ITIN may still be acceptable and allow to apply with a lower-cost carrier.
Keep in mind, that every company would need to ensure that you have strong financial ties to the US and a US policy makes financial sense.
The last thing to keep in mind is that certain carriers limit the choice of products available to foreign nationals.
In some instances, only permanent insurance will be available. Permanent insurance could offer lifelong protection with the advantage of a cash-value account. Due to the additional benefits, these types of policies cost more compared to term life insurance.
In other words, life insurance with an ITIN is not more expensive, however, it could limit the choices of carriers that will approve. Not every situation is the same. Therefore, it is important to work with an agency that has a good overview of the market and can point you in the right direction.
We hope you find this helpful. Should you need any additional information, simply reach out to us and we would take the time to understand your needs and recommend the best option.