H1B is a specialty type of visa, that allows people to legally work and live in the US. While here, people are building their lives and starting families. It is natural to consider securing the need for coverage. In this guide, we will outline the life insurance options with an H1B visa. We would answer common questions we’ve received and list the important things you need to consider.
If at any point you have any questions, are not covered in the guide, or would like us to take a close look into your personal situation, just reach out to us. You can do so by filling out the instant quote form, sending us a message, or simply giving us a call.
Here is what we would cover
- Qualifications of life insurance for H1B visa holders
- What are the options for someone with an H1B visa
- Important things to consider
- 5 FAQs we’ve received
Ok, let’s dive in….
Qualifications of life insurance with an H1B visa
We’ve covered in depth the criteria for coverage and what exactly carriers are looking for when it comes to life insurance with an H1B visa. For more detailed information, simply review our guide on the subject.
In a nutshell, here are the main qualifications:
- You need to be in the US for the application/underwriting process
- Companies would consider what are your financial ties to the US (why policy in the US makes financial sense)
- Country of origin
- Health/Lifestyle – you need to medically qualify for coverage
Again, for a more in-depth analysis, feel free to review our post (we linked to it above).
Life insurance options with an H1B visa
It is time to turn our attention to what are the available life insurance options for H1B visa holders. We’ve divided them into 2 major categories, based on the most common questions we’ve received. This is a quick overview. We have also created a separate post outlining what we believe to be the best life insurance option with an H1B visa.
Let’s look at each option. We will list a brief description and go over the pros and cons.
This is a very common type of life insurance. In a nutshell, if you have this type of policy, you select the duration of your policy. This is defined as the term of insurance. Typically, a term is 10, 20, or 30 years. The premium is fixed and it will remain the same for the duration of the policy.
- Cost – this is a major advantage a term insurance offers. It is the most affordable way to secure a life insurance policy.
- In addition, term insurance is a very straightforward product. You know what your payment will be, how much will your family receive should you pass away and when will your policy end.
*When we say end, we mean the term ends. Afterward, the policy will become an annual renewable contract, but the premium will increase by 300% or more and it will stop making financial sense.
- The first negative of this product is the fact that the premium guarantee will end in 10, 20 or 30 years (the longer the duration, the higher the premium). This could leave many families unprotected or faced with an increased cost of insurance.
- The second negative of this product is the lack of any cash value. Many clients feel like they have been paying for insurance for years, and should they outlive the policy, they’ve just wasted their hard-earned money. We completely understand this point of view and we want to remind you that life insurance is something you do for the ones you love and it is a promise to help them, even if you are gone.
Permanent insurance with an option of Return of Premium
Now, many different insurance products are offering permanent coverage. Some are focused on cash value accumulations, while others on providing no lapse guarantee (lifetime coverage).
Please advise us if you are interested in a product with cash value potential. We would try to get a better understanding of your goals and design an illustration to address your needs.
We want to turn our attention to a special type of permanent policy. Many of our clients see tremendous value in it, and we wanted to outline this option a bit more.
There are products designed to offer coverage until you are 121 years old. This is the highest available length and it is considered lifetime insurance. These policies are called Guaranteed Universal Life. Their main objective is to give you the peace of mind that you would not outlive your insurance.
Another great feature is that some companies offer a 100% return on premium in years 20 and 25. In other words, you can have the policy for 20 years, pay the monthly premium, and in year 20 decide if you no longer need the insurance, you get your money back. On the other hand, if you still need coverage, you would still be insured.
- It offers a lifetime of coverage
- Some companies offer you the option to cash-surrender the policy for a full refund
- Better priced than other permanent policies, such as whole life insurance
- You decide if you would like to keep or cash surrender the policy
- It is more expensive compared to term insurance
- The premium you would receive back will not be adjusted for inflation and there will not be any interest on the money
Important things to consider
We would like you to consider this section the “Fine Print”. We would go over the details of why one company may be a better fit for you than the other.
What is your intention?
In other words, do you intend to remain permanently in the US, if presented with the opportunity? We understand that renewing your H1B visa may be out of your hands and with recent changes within the USCIS office, you might be left with not many options. However, what companies are looking for is what is your intent today. Do you want to build a life here, or do you know you would be going back to your country of origin?
Does the company accept H1B visas?
H1B is a very popular visa, however, some companies have more strict guidelines compared to others. Therefore, it is important to work with a life insurance company geared towards offering coverage to global citizens.
Does the policy include any additional benefits?
There are many companies on the market today offering life insurance with living benefits included and many of our clients see a huge value in that.
In a nutshell, living benefits allow you to “use” your life insurance while still alive. Should you be diagnosed with a health condition, such as a heart attack, stroke, or invasive cancer, you can file a claim against your death benefit and accelerate a portion of it.
Essentially, you don’t have to die for the policy to payout. Even though hope you never suffer any of these conditions, it is reassuring to know there might be applicable coverage.
Are you able to secure a policy without a medical exam
We understand that many people do not mind completing a medical exam if this will increase their chances of getting approval and possibly lower rates. However, if you can secure the same policy with no medical exam, would it be better?
Many companies are offering accelerating options and we were able to secure life insurance for H1B visa holders without a medical exam.
5 FAQs we’ve received
Here are some of the most common questions we’ve encountered when reviewing life insurance options for H1B visa holders:
A: No, there is no fee to apply for life insurance. Even if you would have to complete a medical exam, it will be of no cost to you.
A: Yes, it would. The biggest thing you need to be mindful of is answering honestly on the application. In other words, if you know you will be moving permanently abroad in the next 2 years, you need to disclose that on your application. For more information, you can review our guide on Life insurance payout if I die abroad.
A: Yes, as long as there is a clear insurable interest. We’ve dedicated an entire article to the topic of can a beneficiary lives abroad.
A: Yes, you can. Insurance is at-will participation. You can cancel your policy, there will be no penalties or fees. On the other side, the life insurance company can never cancel your policy, as long as you are making your payments.
A: We’ve created a complete guide on life insurance for foreign nationals.
When it comes to life insurance options for H1B visa holders, there are several important things to consider: what are your intentions, what are your needs, and are you looking for additional benefits?
We specialize in life insurance for foreign nationals and will take the time to review your options and answer any questions you might have.
We hope you find this guide helpful and are looking forward to working with you.