Life Insurance for Green Card Holders
Can a foreign resident obtain life insurance coverage? This question has raised concern to many non-residents. The answer is yes, you can own life insurance coverage, provided you have obtained a green card. But, as usual, there’s more to the story than just that.
Over the past several years, life insurance has become an essential commodity for both citizens and foreign residents alike due to the invaluable benefits of having coverage. For a green card holder that comes into the country either to live and work, your financial protection is as crucial as it is for U.S. citizens.
With life insurance, you can add a level of protection to your life plan. Adequate protection through life insurance ensures that your family is not financially stranded if the unexpected happens and you’re no longer available to provide for them. In other words, life insurance is a financial protection program that provides your family with a tax-free cash payment if you pass on while the policy is active.
Why Do Green Card Holders Need Life Insurance?
Like a life jacket, life insurance can be a useful tool that keeps your family or business afloat from the likelihood of financial shipwreck after the death of the primary income earner.
Life is unpredictable and can often put your family’s financial health at risk if the unexpected should happen. Your surviving family may have to struggle to make ends meet after your passing. Life insurance coverage is a plan you can put in place so they can have something to fall back on. After your passing, death benefits will be transferred to a beneficiary who is chosen by you. The cash reimbursement will take care of their financial needs such as covering for funeral expenses, offsetting mortgage and debts, paying their bills, and ensuring that they maintain a normal lifestyle.
You can also experience peace of mind knowing that you’ve secured the financial future of your loved ones should you pass.
How Does Life Insurance Work for Green Card Holders?
As a green card holder, you have full liberty to obtain Living Benefits life insurance policy provided you meet up with certain requirements. Among the requirements your insurance provider will look out for is to determine if you’ve been in the United States for at least six months or longer. The longer you’ve been in the U.S., the easier it is to get life insurance.
When applying for coverage, you’ll also be required to provide a copy of your green card and complete a foreign resident questionnaire form. You may be asked to fill out your health status, travel experience, employment status, and other basic questions.
In most cases, your insurer might request that you provide a social security number. Depending on your location, you may also need to fill out a form to confirm your state of residence.
Other necessary papers to provide might include your certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (W8BEN) or your Individual Tax Identification Number (ITIN).
What Kind of Policies Are Available to Green Card Holders?
Generally, there are a few different types of policies that can apply to green card holders. Every family has varying needs, circumstances, and budgets.
For a moderate budget and without serious health problems, term life insurance is the most ideal with a cheaper premium rate. Term life provides coverage for a specified number of years between 10 and 30 years.
Permanent life insurance is ideal for green card holders with special needs. It also works for people with extended financial obligations such as estate property and it pays living benefits as long as you continue to pay your premiums.
What Should Green Card Holders Look for When Buying Life Insurance?
It is crucial that you take your time to understand how a policy works before opting for it. You can use some of our suggestions below as pointers.
Do your homework
Just acknowledging that life insurance is an excellent choice for financial fitness is not enough. Before starting, do some research to understand every component that makes up a policy and all that goes into owning a policy as a green card holder.
Read and understand the terms of your policy
A policy is only as good as its underwriting. Each policy has its own unique terms and conditions. Be sure to read and understand every piece of the underwriting before you sign. You may need to ask your insurance provider questions concerning any unfamiliar terms in the underwriting.
Compare and contrast
Doing some research and shopping around is usually a good idea for large purchases. There’s no wrong in drawing comparisons between more than one policy provider to avoid future regrets. Some of the things to look out for in a company include financial capability, a policy that meets your needs, and what others are saying about the company. A. M. Best is a reliable place to check for company ratings.
Decide on how much coverage you need
Knowing the right amount of coverage you need will help in deciding on what particular needs you intend to accomplish with your policy. Paying more in premiums will grant you greater benefits, more flexibility, or both, so you will need to evaluate how life insurance will impact your immediate and future finances.
Seek advice from a financial expert
Consulting with a financial expert will help you in making the right decision. An experienced financial consultant can help factor out which policy best meets your needs.
Buy multiple policies
You’re not limited to buying just one policy. Buying smaller overlapping life insurance policies can help reduce costs instead of buying one large policy. Multiple policies will also help address varying needs as they arise.
How MyTermLifeGuy Can Help
Are you a green card holder residing in the U.S. and looking for affordable life insurance coverage? Gold Coast Life Insurance will help you obtain hassle-free coverage that best fits your individual needs.
We accept members with pre-existing health conditions and do not require a medical examination. We even take high-risk clients. You’re just a few minutes away from getting covered. Take advantage of our free quote to protect the financial needs of your family.