Life Insurance for Non-US Citizens – Assurity Foreign Resident Program
Posted in Life Insurance last updated on June 28, 2024Life insurance for non-US citizens has been a challenge for decades. However, as corporations struggle to find qualified employees and hire teams through visa programs, insurance companies are starting to respond to the insurance needs for the financial security of these families.
This article will review Assurity’s Foreign Resident Program (eligibility criteria, types of insurance available, needed documentation, other basic requirements, common questions) as well as a more general overview of getting life insurance as a foreign national in the United States.
Table of contents
Explanation of Life Insurance & Its Importance
Life insurance provides cash to beneficiaries upon the passing of the insured. This financial safety net helps the surviving family members in whatever way they need or wish to use the money.
For non-US citizens, life insurance can be an essential tool for safeguarding their families’ financial future, particularly in the face of uncertainties related to immigration status, residency, and employment.
Life insurance can also provide a strategic financial asset beyond the survivor benefits. Some policies offer cash value accumulation, which, when set up correctly, gives access to non-taxable cash flow.
Benefits of Life Insurance for Non-US Citizens
Life insurance offers several benefits for foreign nationals, whether you’re here temporarily or persevering through the immigration process, including:
Financial Protection: Life insurance creates a safety net for survivors to cover costs should the unexpected occur.
Debt Coverage: Cover any outstanding debts, such as mortgages, personal loans, and credit cards, ensuring that there is money in the estate left for a spouse or heirs.
Income Replacement: Benefits can replace lost income, helping surviving family members maintain their standard of living.
Estate Planning: Benefits can cover any estate taxes and other funeral expenses or provide for heirs’ education expenses.
Tax Advantages: Depending on the policy, life insurance proceeds are generally not subject to income tax, and if set up in an irrevocable life insurance trust, they can also be held outside of estate taxes.
Providing for Family Back Home: Benefits can be used in any manner you wish. If you support your parents or other family back home, you can use the cash for this purpose, too. (Although regulations require that benefits must be sent to a U.S. bank account or mailing address.)
Peace of Mind: Knowing that your family will be financially protected can ease some of the stress, allowing you to focus on other things.
Eligibility Criteria
Assurity offers life insurance to Canadian citizens, specific visa holders, and folks without a Green Card or Visa, provided proper documentation.
Canadian Citizens
For Canadian citizens seeking life insurance in the US, you’ll need:
- A current Canadian passport
- Own rental property in the US or own a business with operations in the US
Types of Visas Accepted
For non-permanent residents here on a valid visa, regulations require that it is one of the following:
- H-1B, H-1C, H-4: Visas for specialty occupation workers and their dependents.
- E-1, E-2, E-3: Visas for treaty traders, investors, and Australian specialty occupation workers.
- EB-5: Visa for immigrant investors.
- F-1, F-2: Student visas and their dependents.
- L-1A, L-1B, L-2: Intra-company transferee visas and their dependents.
- K-1, K-2, K-3, K-4: Fiancé and their dependents visas.
- V-1, V-2, V-3: Certain non-immigrant visas for family members of US citizens.
If you’re here with a different type of visa, call us at (858) 703-6178 to see what other options may be available.
Green Card
While Assurity’s program doesn’t have specifics for Green Card holders, there is a lot more leeway for permanent residents of the US.
- Proof of Permanent Residency – a copy of your Green Card
- US Residential Address
- Stable Employment or Business Ownership
Many insurance carriers treat Green Card holders the same as US citizens for life insurance purposes. Call us at (858) 703-6178 if you have any questions.
No Green Card or Visa
If you don’t have one of the above visas or a Green Card, you’ll need the following criteria to apply for life insurance:
- Must have been living in the US for at least 5 years
- Valid form of government ID (Driver’s License, State ID, SSN, ITIN, etc.)
Restrictions
Assurity places a few limitations on both careers and country of origin.
Occupations not eligible for life insurance:
- Political figures
- Judges
- Military
- Politicians
- Union leaders
- Missionaries
- Government leaders
- Journalists
- Sports figures
- Police force
- Public figures/celebrities
- Other high-profile occupations up to the underwriter’s discretion
Secondly, Assurity does consider your country of origin as part of the underwriting process. If you’re from one of these countries, you can still apply, but they reserve the right to verify that you do not have any travel plans to return. The list is subject to change as the United States restricted travel list gets updated.
- Afghanistan
- Burundi
- Central African Republic
- Chad
- North Korea
- Libya
- Mali
- Niger
- Nigeria
- Somalia
- South Sudan
- Sudan
- Syria
- Yemen
Types of Life Insurance Policies Available
Assurity Life Insurance Company offers three types of life insurance coverage to foreign residents from different countries. We’ll cover a brief overview of each type. It’s best to speak with a financial professional, like one of our team members here at Abrams Insurance Solutions, about your specific situation.
Term Life Insurance
Get up to $1 million in life insurance benefits from ages 18 to 70.
Definition: Provides coverage for a specific period, such as 10, 15, 20, or 30 years, and then expires.
Benefits: Generally the most affordable premiums, fixed benefits, and some customization with add-on benefits (AKA riders).
Ideal for: People seeking temporary coverage to protect specific financial obligations, such as a mortgage or a child’s college fund.
Assurity’s Offering: Assurity Term Life insurance offers level premiums for the term period selected. It includes an Accelerated Benefits Rider, which provides advance payment of the death benefit if diagnosed with a terminal illness (meaning you have less than 24 months to live.) This policy is renewable up to age 95 and can be converted to a permanent life insurance policy without additional underwriting.
You can also add a Return of premium benefit rider. It pays up to 100% of premiums paid if you outlive your policy.
Whole Life Insurance
Whole life insurance provides lifelong coverage and the added benefit of cash value accumulation.
Issue ages range from 18 years old (with some exceptions for minor children) to age 85. Benefits go as high as $1 million. However, exceptions can be made with a few extra steps if you’re seeking higher amounts.
Lifetime Coverage: Guarantees a death benefit for the policyholder’s entire life, ensuring financial protection for beneficiaries. You can also choose a limited pay option where you’ll pay a little more upfront, but your policy will be entirely paid up in 10 or 20 years or at age 65.
Cash Value: Builds cash value over time, but usually without risk of loss. Cash value can be borrowed against or used for future financial needs or opportunities.
Dividend Eligibility: Policyholders may receive dividends based on the company’s financial performance, enhancing the cash value of your policy.
Accelerated Underwriting: Fast approval for many applicants, skipping the normal 6 – 8 week wait time.
Additional Riders: You can add a handful of extra features to customize your policy.
- Accelerated Death Benefit: allows access to a portion of your death benefit upon diagnosis with a chronic or terminal illness
- Critical Illness: Pays a lump sum upon diagnosis of cancer, stroke, or other covered medical condition
- Level Term: provides level-premium, level-benefit term life insurance to the insured for 10, 20, or 30 years
- Accidental Death Benefit: pays an additional amount equal to the policy face amount if the insured dies resulting from an accident or bodily injury
Universal Life Insurance
Universal life insurance is a more versatile option, with flexibility in premium payments and death benefits (often helpful for business owners!) Depending on their income and assets, Anyone from age 18 to 70 qualifies for up to $1,000,000 in benefits.
Flexible Premiums: Adjust premium payments based on your financial situation, giving you some wiggle room in your budget.
Adjustable Death Benefits: Choose between level or increasing benefits to match your needs as they change throughout your life.
Cash Value Growth: Accumulates cash value, offering the potential for improving finances. Tax-free when used appropriately. (If you’re on your way to citizenship, there are also ways that life insurance can help fund your retirement.)
Living Benefits: Riders allow policyholders to access some/all of their benefits while still alive under conditions like chronic or terminal illnesses.
Riders: You can add the Level Term Rider which holds the premiums steady for 10, 20, or 30 years.
Required Documents
You’ll need some extra documentation to apply for life insurance as a non-US citizen since there are slightly different rules. But it’s not much.
- Cover Letter: Explaining the need and purpose for US life insurance, how the face amount was determined, and connection to the US. We can create this for you.
- Completed Foreign National Questionnaire: Details of personal and financial information.
- Proof of Identity and Residency: This could be copies of your passport, proof of residential property or business ownership, or a valid Green Card or visa.
- Social Security Number or Taxpayer Identification Number: You’ll need this for both the insured and policy owner, if they differ.
- Proof of Employment or Income: W-2 forms, tax returns, or other documentation demonstrating stable employment or income.
You may also need the standard life insurance documents such as medical records or other additional information.
Common Questions & Concerns About Life Insurance for Foreign Nationals
Can non-US citizens get life insurance in the US?
Yes, many life insurance companies offer policies to non-US citizens who meet specific criteria. We’re highlighting Assurity here because it’s one of our go-to companies for ease of application and low rates.
Are life insurance proceeds taxable for a foreign citizen?
Life insurance benefits are not typically taxed. However, estate taxes may apply. There are ways to get around that, such as with an irrevocable life insurance trust. Speaking with a tax advisor about your financial situation is usually best.
What happens if I move back to my home country?
Assurity requires that policy ownership be based in the U.S. with a U.S. mailing address, not a P.O. Box. Further, all premiums must be paid from a U.S. bank account in U.S. dollars. Death benefits may only be sent to either a U.S. mailing address or a U.S. bank account.
How does my immigration status affect my life insurance application?
You’re eligible if you meet the requirements above (one of the specific visas or a Green Card). If you have other concerns, call us at (858) 703-6178.
Can I change my policy if my situation changes?
Lots of people do! A universal life with its built-in flexibility might be a good type of coverage for that situation. However, many families will start out with term life insurance to cover a mortgage or protect their families if something happens, then add a different type of life insurance later for other purposes.
How Abrams Insurance Solutions Can Help
We’re a small team of independent agents dedicated to helping families get the right life insurance for their financial goals for the lowest possible price. Our experienced agents understand the unique challenges faced by folks visiting on visas or going through the immigration process. Here’s how we can assist you:
Expertise in Foreign National Insurance: Our team specializes in life insurance for non-US citizens, ensuring that you’ll get expert advice tailored to your situation.
Comprehensive Policy Options: We offer a range of life insurance products from leading carriers, including Assurity, to meet your needs and budget.
Assistance with Documentation: We will help you gather all of the required documentation and your cover letter to make the application process easy.
Ongoing Support: Life insurance is part of a long-term plan for financial safety and success. We’re here to support you throughout the life of your policy. From policy reviews to beneficiary updates, we ensure your coverage aligns with your needs.
Call us at (858) 703-6178 today to get started.
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