According to the U.S. Census Bureau, there are over 42 million immigrants in the United States. Non-US born individuals account for approximately 13.3 % of the current population and this number is continually growing. Therefore, we felt the need to discuss what are the options for life insurance for non-permanent residents.
First off, we will define the difference between a permanent and a non-permanent resident. Afterward, we will answer the question of why a foreign national may consider purchasing a life insurance policy in the U.S. and then we will go over some of the basic requirements.
This will be a good time to mention that securing life insurance for non-permanent U.S. residents is a constantly changing topic. Please contact us to get the most up-to-date information on requirements and eligibility.
What we will cover:
- Who is considered a non-permanent resident
- Why life insurance for non-permanent residents may be a good fit
- Requirements for a non-permanent resident to qualify for life insurance in the U.S.
According to the USCIS definition, “a Green Card holder (permanent resident) is someone who has the authorization to live and work in the United States on a permanent basis. As proof of that status, a person is granted a permanent resident card, commonly called a “Green Card.”
On the other hand, a non-permanent resident is someone who is in the United States based on a visa. He or she is not considered an immigrant and is expected to leave the country upon the expiration of the visa. Some of the most popular examples of temporary visas are B-2 (visitor for tourism), E-2 (investor), F-1 (academic or language student), and H-1B (specialty worker) and etc.
Typically, a visa allows a person to enter the U.S. and to engage in certain activities while in the country. For example, if you receive a student visa, you can study in the United States – but in most cases, you can’t work off-campus and stay permanently (if this applies to you, check out our life insurance for international students guide).
For insurance purposes, the foreign risk profile generally falls into one or more of the following categories:
- Citizens of a foreign country who reside in the United States
- Individuals residing in a country other than the United States
- Individuals who travel outside the United States (even expats will fall into this category)
There are many factors that could play a major role in determining underwriting eligibility. For example, the length of time spent in the U.S., the immigration status, past, and future travel plans and any counties you may plan to visit. In order to get the best possible rate, you need a comprehensive review of your situation by an experienced agent.
There are many reasons why a foreign national may purchase a U.S. based life insurance policy. Here are just a few:
- Protect his family while in the United States.
- Ensure there will be funds to cover final arraignments and any other expenses
- The option to select U.S. beneficiaries (the beneficiaries need to have an insurable interest)
- Capacity—often there is a limited capacity in their own country
- The U.S. dollar is still considered one of the leading currencies in the world
- They may be the concern about the political and economic situation in their own country
- Protect U.S. assets such as homes, businesses, or as a part of an estate planning strategy
- Would like to expand their portfolio and are accustomed to having investments offshore or based in the U.S.
An underwriting team of any given company has a list of requirements in order for an applicant to secure a life insurance policy. An example of these could be health status, qualify for a coverage amount, length of policy, type of policy and etc. On top of that, a non-resident must meet an additional set of criteria in order to obtain a policy. We will go over some of them, but could not get in-depth of all possible situations. You can always send us a quick e-mail with your particular circumstances.
Be present in the U.S.
A non-resident wanting to get coverage must be in the country for the entire process. Finalizing a life insurance application typically takes 4-6 weeks. An applicant must be present for the United States for the following steps:
Solicitation – the quote and policy selection
Application – part of the process may be obtaining a copy of medical records from your country of origin. Please have all of your doctor’s contact information available. In some instances, you may bring your records, translated in English, but not in all cases.
Exam – needs to be completed in the U.S.
Delivery of the policy – the policy needs to be mailed to a U.S. based address; P.O. Boxes are not acceptable
Set up a payment plan in a U.S. currency – typically companies require the premiums to be drafted out of a bank account
If someone other than the insured owns the policy, the insurable interest laws of the state of application and issue apply.
Have ties to the country
In order for a non-permanent resident to purchase a life insurance policy, he or she needs to have substantial ties to the county. An individual can’t come to the United States with the sole purpose of getting life insurance.
Example of ties to the country could be:
- Being married to a U.S. citizen;
- Have an immediate family member, living in U.S. and travel regularly to visit them. Examples of immediate family members include spouse, children, brother or sister;
- Have a bank account in the U.S.;
- Own real property in the U.S.;
- Be an employee of a U.S.-based company;
- Maintain an investment interest in the U.S. which may include investment account ownership in the U.S.;
- Have significant, systematic ongoing business activities in the U.S. and etc.
Country of origin
When applying for life insurance, the underwrites take into consideration the country of origin. There are countries not allowing their citizens to purchase life insurance in the U.S. These counties are:
We are not able to offer coverage for residents of the following countries:
|Cuba||Democratic Republic of Congo||Iran|
The conditions in the world change very fast. Therefore, these lists of countries could also change. As of today, individuals residing in countries or jurisdictions under a current U.S. State Department Travel Warning will be individually considered and may be declined.
Please contact us with your specific situation for a personalized quote. In some cases, navigating through the world of insurance can be challenging and often confusing. We are here to help and guide you through the process. Life insurance for non-permanent U.S. residents is possible and affordable, with the right tools and the advice of a licensed insurance professional.