Return of Premium Term Insurance for Visa Holders
Posted in Foreign Nationals last updated on June 6, 2025Many of our clients appreciate the simplicity and guaranteed protection that term life insurance provides. However, a common concern is that if they outlive the policy, the money they’ve paid in premiums is lost. While some assume their only alternative is expensive permanent life insurance with a cash value feature, there’s another option worth considering: return of premium (ROP) term insurance for visa holders.
Correct, non-permanent residents and non-US citizens can secure affordable plans with the option to get ALL of their premiums at the end of the term.
What we will cover
- Understand return of premium term insurance for visa holders
- Eligibility for non-permanent residents
- Important things to consider
- Compare the return of premium to other plans
- Who’s this plan for
| Quick article summary: Return of premium term life insurance allows visa holders to receive 100% of their premiums back, paid as a tax-free lump sum if they outlive the policy. This plan is available to non-permanent residents who have been in the US for at least 1 year (or 3 years with simplified criteria). Coverage is available up to $1,000,000 and requires a medical exam. |
Prior to diving into the article, we would like to take a moment to advise you that we specialize in life insurance for foreign nationals. We’ve contracted with 20+ different carriers to find the best protection with the easiest approval process. To see your rates or to get the process started, simply complete the quote form on the page.
What Is Return of Premium Term Insurance for Visa Holders?
Return of Premium (ROP) term life insurance is a type of policy where the insurer refunds all your premium payments. It was a popular plan a few decades ago; however, now only a handful of carriers offer it, and only 1 that we know of to visa holders.
What makes this plan different from standard term life insurance is that typically the premiums are higher; however, in exchange, you will receive 100% of the money back at the end of the term.
One carrier is making this plan available for visa holders if they meet certain criteria. We’ve outlined the eligibility below.
Eligibility for Non-permanent Residents to Secure Return of Premium Term Insurance
In addition to the regular health and lifestyle underwriting, visa holders will have to meet additional criteria to secure term life insurance with a return of premium option.
Visa requirements
The carrier has 3 main categories when it comes to underwriting non-US citizens:
Visa holders:
An applicant must hold one of the following visa types to be eligible for coverage:
Canadian Citizens:
Canadian citizens in the US on a passport who own residential property or own a business with operations in the US.
Undocumented Immigrants or with expired visa
Return of premium term life insurance will be available, if you meet additional criteria, such as
- Being in the US a minimum of 5 years;
- Have a government-issue ID;
- Have a Social Security Taxes or ITIN;
- Have income and can provide either a W-2 or 1040 tax form;
- Own a property or own a business incorporated in the US
If you are an undocumented immigrant, however, and you are not quite meeting the criteria above, we’ve created a separate guide on life insurance for undocumented immigrants or living benefits life insurance if undocumented. We will encourage you to check them out.
Length of stay in the US
The company will consider the length of stay in the US when assessing the requirements to approve your application. Generally, the longer you have been in the US, the easier the underwriting.
12+ months in the US
If you are a visa holder on an approved visa (see above), you are eligible to apply for a return of premium term life insurance if you can provide:
- A copy of a valid government photo identification
- Verifiable proof of U.S. residential property ownership
- Documented earned U.S. income
- Clear copy of your valid visa
- Date of entry verification
- Social security number
- Phone interview
3+ years in the US
If you are a visa holder who has been in the US, you will have different underwriting criteria to be eligible for this plan:
- Clear copy of your valid visa
- Date of entry verification
- Social security number
- One of the following:
- own a US residential property
- ownership of a business incorporated in the US, or
- have documented earned US income and/or assets.
Coverage limits to non-permanent residents
The coverage limits available to visa holders wanting to apply for return of premium term insurance are $100,000 – $1,000,000. $1M in coverage will be the maximum coverage considered for non-permanent residents.
If you need more insurance/higher coverage than $1,000,000 as a non-permanent resident, we can look at supplemental coverage with an additional coverage. While this second policy won’t include a return of premium, it can offer added death benefit protection if needed.
Medical exam requirement for non-US citizens
The plan will require the completion of a medical exam. It is also very likely that the company may order a copy of your medical records. The process is called full underwriting, and unfortunately, accelerated underwriting and no medical exam options for the return of premium term insurance will not be available to visa holders.
If you are looking for a no medical exam option, we have contracted with multiple companies that can possibly consider your application without the need for a medical exam. The final decision will be at the underwriter’s discretion after he or she reviews the application.
Pros and Cons of ROP Term Insurance for Non-US Citizens
Prior to deciding which life insurance plan makes the most sense to you and your family, there are several things we would like you to consider:
Higher cost compared to a traditional term life insurance
Return of premium is priced higher compared to traditional term life insurance. It is more expensive due to the benefit of receiving all of the premium back at the end of the term should the insured outlive the policy.
For example,
We were working with a young 31-year-old female looking for life insurance. A plan for $500,000 would have been at a rate of $21 per month. Had she opted for the return of premium life insurance, her monthly premium would have been $44. This is a 110% increase in premium to have that money back.
The money will not be adjusted for inflation
This is another important factor to consider when selecting this plan. Yes, it is great to receive all of the premium back; however, please keep in mind that it will be a dollar-for-dollar payment. There will be no adjustment for inflation or any interest earned on the payment.
Need to wait for the full term duration to get the money back
If you cancel the plan early, for example, in year 7, you won’t receive a refund. To have access to 100% of the premium back, you would need to wait for the end of the term duration to be eligible.
Compare The Return of Premium to Other Plans
Traditional term insurance vs. Return of premium term insurance
The key difference between the plans, as the name suggests, is that you will be able to get your money back at the end of the term should you decide to select return of premium. Here is a quick comparison between the plans when it comes to visa holders looking for term insurance (please note that if you are a US citizen, this chart will not apply, as the company has different guidelines).
| Traditional term insurance | Return of premium term insurance | |
|---|---|---|
| Get your premium back at the end of the term | No | Yes |
| Cost | Lower cost | Higher cost |
| Companies offering coverage | Multiple companies | Very limited carriers |
| Option for No-exam | Yes | No |
| Option for living benefits | Yes (with some carriers) | No |
| Coverage limitation | No | Up to $1,000,000 |
Return of Premium Vs. Guaranteed Universal Life with Return of premium feature
This is a time to mention that there are other plans that offer a return of premium: Guaranteed Universal Life Insurance. It is a permanent life insurance, guaranteed to last until age 100 or beyond. The insured can exercise the option to get all of his premium back in year 25 or 30 and essentially surrender the policy. We have dedicated a comprehensive guide to guaranteed universal life insurance for visa holders.
The main takeaway is there is an option for lifetime coverage, and should the needs change, you can get all of your money back guaranteed.
Who’s This Plan For
Now that you have an understanding of the product and other factors to consider, who is return of premium term life insurance for?
If you are looking for simplicity
This plan is straightforward as it provides level term life insurance with a specified duration, coverage period, and set premiums.
If you are looking for guarantees
The plan guarantees to return 100% of your premium payments at the end of the term should you outlive the plan. The company will either pay out to your beneficiary should you pass away or pay out to you should you outlive the plan.
Lower cost compared to guaranteed universal life and other permanent plans
If you like the idea of getting your money back but do not want to pay the higher cost associated with permanent life insurance, this is the plan for you. The company will return all of your premium payments and maintain its affordability, being a term life insurance.
In conclusion
Return of premium term life insurance for visa holders is possible with only one company. You will have the option to secure term insurance and get 100% of your money back should you outlive the duration of the policy. The plan is limited to $1,000,000 in coverage for visa holders (very limited exceptions for higher coverage) and will require the completion of a medical exam.
If you have any questions about this product or need assistance in taking the next steps, simply reach out to us.
We hope this guide was helpful. If you’re ready to explore your options or looking for immigration resource , we’re here to help you protect what matters most. Thank you!