Life insurance for undocumented parents
Posted in Foreign Nationals last updated on September 28, 2021Countless immigrants have built a life in the US and many need life insurance coverage. Unfortunately, due to their immigration status, they are oftentimes told “NO” and leave their families unprotected.
We’ve made it our mission to help foreign nationals and their families find the coverage they need. Therefore, we’ve created this guide on how to secure life insurance for undocumented parents. We intend to answer some of the most common questions we’ve received throughout the years such as eligibility, requirements, options, and cost.
What we would cover
If you have any additional questions, not covered in the guide, feel free to reach out to us directly. You can do so by filling out the instant quote form on the page or simply give us a call. We would take the time to listen and present you with your solutions.
Ok, let’s dive in..
Why is it important to consider life insurance for undocumented parents
We all know that it is important for our parents to have some financial plan to cover the cost of a funeral. It is no secret that the Social Security benefit alone would be far from enough to pay for burial and the additional expenses that might arise.
However, in the case of parents who are foreign nationals, there is an additional reason that may be oftentimes overlooked: Where do your parents want to be buried? It is not unusual for an immigrant to want to be buried in his or her home country. In fact, for one reason or another, many people prefer to return to their roots and end their life journey in their homeland.
Generally, it costs more to transport remains vs. to travel. In addition, there are several other expenses that could add up like coffin, embalming the body and etc. This is not even factoring in the cost for you to fly out and say your goodbyes.
Even if your parents, would like to be buried here, the bill of a funeral could anywhere from $3,000 – $15,000 or more. Unfortunately, many families do not have the financial ability to cover this expense without putting any strain on their budget.
In addition, this option may be very beneficial, if they need to secure life insurance to strengthen their application for Parole in Place.
This is where a final expense policy would come in. Typically, the benefit is anywhere from $5,000 to $30,000 and it is often used to cover the funeral costs and additional expenses.
Are there any options for someone without a valid visa
Yes, you can secure life insurance for your parents, even if they do not have a valid visa. Not every company would consider undocumented immigrants, or for someone without a green card, however, there are available options.
Their eligibility will be based on several factors (we would cover shortly) and the amount of coverage they need. If your primary objective is to secure a policy to cover the cost of burial expenses, please review our guide on final expense without a green card.
On a side note, we wanted to bring your attention to an option many of our clients find helpful: Life insurance with living benefits. In a nutshell, it is a type of policy that could payout while the insured is still alive, should he or she be diagnosed with a qualifying medical condition. We have contracted with a carrier that offers this benefit to foreign nationals without a green card. Review our guide on the topic to learn more.
8 Things companies looking for
Let’s turn our attention to what companies are looking for in order to determine eligibility. We would go over these questions while on the phone with you to ensure we are presenting you with an accurate solution.
The insured needs to be in the US
There are no exceptions to this rule. This stands true for any kind of life insurance policy issued by a US-based company.
Does the insured have a valid SSN or ITIN
In order to qualify for insurance, the companies would be looking for either an SSN or an ITIN.
Consent
We want to point out that in order to secure a life insurance policy on your parents, they need to be “on board”. They need to complete the application and in some instances a phone interview.
Country of origin
Every company has a set of requirements when they are underwriting foreign nationals. The insured’s country of origin is one of those requirements. Therefore, we’ve created separate guides for the citizens of Mexico, Canada, the Philippines, China, and Japan.
Intend to remain in the US
It is a standard question many companies are asking as a part of the underwriting process. They want to ensure that the insured plans to reside in the US. It is crucial to be upfront during the application and answer truthfully on the application.
This is a good point to mention that the interview and application need to be completed in English. Please advise if your parents do not speak English and need an interpreter. We need to reach out to the carrier to ensure it’s acceptable.
Age
Companies have restrictions on the age of the applicant. Typically, a person needs to 80 or below in order to secure a policy.
Health
Based on the type of policy, a carrier may ask a number of health questions.
During our initial conversation, we would need to go over a health analysis. We would ask you questions about current and past medication conditions, medications and other history. Please be upfront with us. This would save us not only time by applying with the right company, but money as well.
Payment
The payments need to be made out of a US bank account. Companies will allow monthly auto deductions or annually. Some carriers may allow quarterly and semi-annual payments.
These are some of the requirements carriers have when underwriting life insurance for undocumented parents. If you need some additional information or want us to review your options, simply reach out to us.
How much does it cost (Sample Rates)
There are many factors that can determine the cost of insurance. Some of the most common ones are the type of policy, age and health of the insured.
Below, we’ve created a sample table outlining the possible cost of insurance for females, non-tobacco in average health.
| Age/Coverage | $10,000 | $20,000 | $30,000 |
|---|---|---|---|
| 50 | $30.90 | $57.17 | $83.44 |
| 60 | $42.49 | $80.36 | $118.23 |
| 70 | $71.44 | $138.25 | $205.06 |
Below, we’ve created a sample table outlining the possible cost of insurance for males, non-tobacco in average health.
| Age/Coverage | $10,000 | $20,000 | $30,000 |
|---|---|---|---|
| 50 | $35.82 | $67.01 | $98.20 |
| 60 | $56.97 | $109.32 | 161.66 |
| 70 | $102.48 | $200.43 | 298.19 |
What if they do not meet the requirements
There might be instances when they could not qualify for life insurance due to health, age, or other reasons. In these instances, there is a product designed to help foreign nationals to secure the coverage they need. It is a guaranteed issue life insurance. We’ve created an entire guide on the product and you can feel free to review it. It includes prices, available options and how is the policy structured.
In a nutshell, a guaranteed issue life insurance policy is a type of life insurance with zero health questions. Some companies require the applicant to be a permanent resident or a US Citizen. We’ve contracted with a company that can offer this product even to illegal immigrants, or someone who does not have Social Security Number.
In Conclusion,
There could be countless reasons why an immigrant may need life insurance. We wanted to advise you that it is possible to secure life insurance for undocumented parents. Companies would ask health, lifestyle, and other questions to determine eligibility.
We hope you find this helpful. Should you need any additional information, feel free to reach out to us!
Thank you!
