Return of Premium for visa holders
Posted in Foreign Nationals last updated on May 8, 2025Paying for term life insurance can feel like throwing money away – like renting an apartment when you could be building equity in a home. We hear this concern often from our clients, especially young professionals on work visas who have been in the US for several years. A common question is, “If I outlive my policy, do I get my money back?”
With Return of Premium for visa holders, the answer can be yes. This unique policy offers the protection of term life insurance with the added benefit of a full refund of your premiums if you don’t use it. In this article, we’ll explain how Return of Premium works for visa holders, who qualifies, which companies offer it, and what you need to watch out for – so you can decide if it’s the right fit for your financial goals.
What we will cover
- Return of Premium life insurance 101
- What visas are eligible for a Return of Premium life insurance
- What products offer Return of Premium options
- Requirements for visa holders to get life insurance with Return of Premium
- 4 Important factors to consider before securing this product
Prior to diving in, we would like to point out that we are an insurance agency that specializes in life insurance for visa holders, expats living abroad, and anything immigration-related. Ready to stop “renting” your life insurance? Explore how a Return of Premium policy can give you peace of mind and your money back.
Return of Premium life insurance 101
Return of premium Life insurance is a plan where the life insurance company will return the premium payments after a specific term. Here is an example: you have a term life insurance policy for a period of 30 years. You pay your premiums, and you outlive your policy. At the end of the 30 years, the company cuts you a check for all of the premiums you have paid throughout the years. Essentially, you are having life insurance for free. Not a bad deal, right?
It certainly can be. We will look at the details below.
What visas are eligible for a Return of Premium life insurance
In addition to traditional health and lifestyle underwriting, companies will review your visa and residency status in the US. Unfortunately, not every visa will be accepted. This is why it is crucial to work with an agency specializing in life insurance for foreign nationals to ensure you not only qualify for coverage but also secure it at a good rate with a reputable company.
Below are some of the most common visas companies will consider for a Return of Premium coverage.
If you are a non-permanent US resident (living under a different visa) or undocumented immigrant, simply reach out to us; we will review your circumstances and advise you of your options.
What product offer Return of Premium for visa holders
Initially, Return of Premium life insurance was offered as term life insurance. At the end of the term, the company returned all of the premiums if the client outlived the policy duration. Nowadays, many companies have discontinued their Return of Premium plans for various reasons. There are only a handful of companies that still offer term life insurance with Return of Premium. Unfortunately, these plans may not be available for non-US citizens.
Guaranteed lifelong insurance with Return of premium option
These plans are gaining momentum, and there are multiple companies offering this to US citizens AND visa holders.
Here are just a few of the policy features:
- The company offers lifelong coverage
- In specific years, typically, years 20 and 25, you will have the option to surrender (cancel) the policy and receive your premiums paid back
- If in year 25, you decide to continue with the plan, you will have this option (not to exercise the Return of Premium option)
- Some companies offer living benefits built into the plan.
We’ve dedicated a separate article to the features of the lifelong coverage for visa holders for more information.
Eligibility for life insurance with Return of premium for visa holders
In this section we will turn our attention to eligibility and criteria to secure life insurance with Return of Premium as a visa holder in the US.
Hold a valid visa
As we mentioned above, not every visa will be considered. If you do not hold any of the visas listed above, we will encourage you to still reach out, as guidelines may have changed after writing this article. In addition, some companies may offer similar plans, even if you are an undocumented immigrant.
Length of stay in the US
This is an important question during underwriting. Companies will ask how long you have spent in the US and whether your intention is to remain here permanently.
Typically, you will have the most options available if you have been living in the US for 3+ years.
Have a US bank account and a Social Security Number (SSN)
Companies will require you to have a US bank, as the premiums must be paid out of a US bank account. Having an account open in the US will add an extra layer of verification when underwriting non-US citizens.
Some companies can consider life insurance with an ITIN and provide multiple coverage options.
Medical exam
Unfortunately, most companies automatically order a medical exam if you are a visa holder. The medical appointment typically lasts 20 minutes, and it can be completed at your home. The life insurance company will cover the cost of the exam, and we will help you schedule the appointment.
Please note that there are some companies that will consider a no-medical exam for visa holders.
4 Things to consider BEFORE securing a Return of Premium as a visa holder
There are a couple of things you will need to consider prior to jumping into this product. We’ve covered them below:
If you cancel before the eligibility window, you will not receive your premium backs
Companies allow only a small window, typically 60 days, to reach out and advise them that you will want to exercise the Return of Premium feature. If you cancel before the time or miss the window, you will not be able to get your premium back (this applies for a lifetime coverage with Return of Premium feature).
There is no growth/adjustment for inflation
In 20 or 25 years, you will receive the exact amount you have paid into the policy. The return will not be adjusted for inflation, and there will be no interest accrued on the money. We advise our clients to think of it this way: $20,000 has different buying power today compared to 20 years ago.
Higher premium compared to plans without Return of Premium option
Life insurance companies employ actuaries and financial analysts. They have priced the product according to the features, life expectancy, and payout rates. Therefore, term life insurance with a Return of Premium costs more compared to life insurance without this feature. This is really evident in term life insurance, where we can sometimes see a 200% increase in premium.
Very limited choice of company offering this product
There are not many carriers on the market that offer term life insurance with a Return of Premium option. Also, as we mentioned, these products may not be available to foreign nationals. As a visa holder, your only option will be to secure lifetime coverage with the Return of Premium feature.
Generally, when fewer companies offer a given product, there is less competition, which leads to higher premiums.
In conclusion
Return of premium life insurance as a visa holder is possible if you apply with the right company. Not many carriers, if any, will offer this to a non-US citizen, which leaves visa holders to look into only lifetime coverage with a Return of Premium option.
In our opinion, this may make sense for someone who would like to have the option of getting his or her money back in 20/25 years and is not concerned with the lack of interest gain.
There are other life insurance products that can provide lifelong protection, build cash value to the point of getting your money back, and even more. These products can offer greater flexibility and earning potential. Simply let us know if this is something that you would like to learn more about, and we can run a comparison between the two.
We hope you find this information helpful. We are here to assist you every step of the way and answer any questions you might have.
Thank you!