Millions of Americans have life insurance because it can pay a substantial benefit to help protect their family finances in case of an untimely death. But a life insurance policy is only worth getting if you trust that the company behind it will still exist years or even decades later, and be able to pay that benefit in a currency that has value. In many parts of the world that may be hard to find. So many foreign nationals wonder if they can get US-based life insurance to protect their families. Depending on the circumstances, the answer can be yes.
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Foreign nationals residing or investing in the United States can often – but not always – get life insurance from an American company, with a death benefit paid in US dollars. However the process for getting coverage, and types of policies available will differ depending on your residency status, the company issuing your policy, and other factors. This simple guide can help you navigate the basic process of getting a US life insurance policy, including:
How residency or visa status affects your options
The main types of coverage offered in the US
The process of applying for a policy
Residency and visa status for foreign nationals
As a foreign national, eligibility for life insurance largely depends on your legal residency status in the United States, which can be broken down into three main categories: green card holders/permanent residents; non-permanent residents with visas; and non-residents with US ties.
1. Green card holders and permanent residents
In the eyes of US Citizenship and Immigration Services (USCIS), a “green card holder” is the same as a “permanent resident” – the card is actually an official document that proves a person has been granted authorization to live and work in the United States on a permanent basis. As such, a non-US citizen with a green card generally enjoys access to the widest range of life insurance options with fewer restrictions than other foreign nationals. However, many insurance companies require a minimum of two years as a permanent resident before providing coverage.
Once you’ve held a green card and resided in the US for two consecutive years, you’ll generally be eligible for all the life insurance options available to regular US citizens. But while citizenship status will no longer be an issue, it’s important to remember that age, gender, health status, income level and other factors will still affect the cost and coverage options available to you.
2. Non-permanent residents with visas
If you hold a valid US visa you may still be able to get coverage, but you may face more challenges compared to a permanent resident with a green card. Few companies will issue coverage for student visa holders, but the following types of visa holders can often get coverage if they’re willing to shop different companies and overcome some added hurdles:
E – employer sponsored immigrant visa
H1B – temporary work visa for someone in a specialty occupation
K – nonimmigrant visa for a fiancé/e of a U.S. citizen
L – temporary work visa for an intracompany transferee
O – temporary work visa for someone with extraordinary ability or achievement
TN and TD – visas for Canadian and Mexican NAFTA workers
Your coverage options will vary depending on your visa type, duration, and the guidelines of the company issuing the policy. In any case, it’s essential to ensure that your visa is up to date and valid when applying for life insurance, and you can expect carriers to require additional documentation and assessments to accurately analyze your risk profile.
Before applying for coverage, it’s a good idea to research your options and work with an insurance agent or broker who is familiar with the unique challenges faced by non-permanent residents.
3. Non-resident foreign nationals with US ties
Some high-net worth foreign nationals with significant business, financial, and family ties in the U.S. may also qualify for life insurance coverage. These policies are typically quite specialized, and designed to help internationals with personal and business interests in different countries manage their complex affairs. Availability may be limited by your country of residence, and if coverage is offered, the underwriting process can be quite involved.
Despite such limitations, these policies can be an invaluable tool for internationals looking to the US for protection for family capital and assets. In addition to diversifying their financial portfolio, such polices can help solve the problem of transferring wealth to the next generation: While US residents enjoy a federal estate tax exemption of $12,060,000, the exemption for non-residents is limited to just $60,000. Non-resident life insurance can help bridge this disparity, because death benefit payments are exempt from federal estate taxes.
The Global Citizens Program
Guardian provides specialized life insurance solutions and services designed to meet the unique demands of high-net-worth international clients. Our Global Citizens Program allows qualifying clients to tap into a dedicated team that specializes in the more complex financial protection needs of clients with multinational interests – and provides white-glove service with the backing of one of the world's largest mutual life insurance companies. Clients must be non-resident, non-US citizens who demonstrate financial connections, holdings and/or family ties in the US. A dedicated case concierge team is assigned to help each applicant, and submissions are evaluated by specialized underwriters. Other amenities include a complimentary US trust review, translation services, law firm referrals, and more. To learn more, contact a Guardian financial professional.
What about undocumented immigrants?
Life insurance options for undocumented immigrants tend to be quite limited, but it still may be possible to get a limited amount of protection. Some carriers may offer coverage with specific requirements, such as proof of residency in the US, evidence of income or employment, and a taxpayer identification number or individual taxpayer identification number (ITIN). If getting coverage is important to you, try asking friends or colleagues in your community if they know of an insurance agent or broker who specializes in working with foreign nationals, and consider contacting them to explore your options and find the best solution.
The three main types of life insurance offered in the US
Term life insurance
This is the most popular type of coverage available, because it can provide significant life insurance protection at an budget-friendly cost. A term life insurance policy covers you for a limited period, usually 10, 15, 20, or 30 years, and if you pass away during that time, the death benefit is paid out income tax-free to your beneficiaries. After the term ends, coverage lapses, and you have to apply for a new policy. If you qualify, the insurance carrier will likely charge significantly higher premiums due to increased age and health risk. And, unlike permanent whole and universal life insurance (below), term policies don’t build cash value, so they cannot be used for asset-building purposes.
Whole Life Insurance
Whole life policies offers lifetime coverage with a guaranteed death benefit and fixed premiums.1 It also builds cash value over time, which you can borrow against or access in other ways.2,3 Whole life policies from a mutual insurer (such as Guardian) may also qualify for dividends that can further build cash value, because these companies are actually owned by their whole life policyholders.4 The downside? While whole life policies provide lifelong coverage and asset-building benefits, the initial cost can be significantly higher than term insurance.
Universal Life Insurance
Universal policies offer permanent coverage and build cash value with more flexibility (and fewer guarantees) than a whole life policy. You can adjust the premiums and death benefit level within a certain range, and these policies may give you a choice of ways to build cash value, (for example, you may opt to earn a fixed interest rate or invest in the market). However, this flexibility also means that the policies have to be managed to a certain extent, and care taken to ensure the policy account value doesn’t dip below a certain level which could cause coverage to lapse.5
Applying for US life insurance as a foreign national
As with any important financial product, you should start by doing a little research to help decide on the best kind of policy for your needs and situation. If you are a permanent resident, you can research providers and compare policies, features, and costs with the assumption that most or all of the options available to US citizens will also be available to you. Otherwise, consider looking for providers or programs that specialize in providing policies to foreign nationals. Whatever kind of policy you end up getting, here are some things to keep in mind during the application process.
Gather relevant documents
As you start applying for coverage, it will help to have the following types of documents ready and available, depending on your specific situation:
Passport and visa documents
Proof of your residency or legal status in the US, such as a green card, valid visa, or state-issued ID
SSN or Individual Taxpayer Identification Number (ITIN)
Proof of U.S. ties (e.g., property deed, employment contract)
Proof of income or employment
A valid driver’s license
Expect a medical exam
Most life insurance policies require some kind of medical underwriting to evaluate your health and insurance risk. In many cases you’ll need an actual medical exam; in others, you may just need to answer some health-related questions. You may also be asked to provide medical records. If documents from your home country are acceptable, the insurance company will likely require a certified translation.
Allow time for the underwriting process after submitting your application
The insurance company will likely require you to sign the actual policy application form – and complete other requirements, such as a medical exam – in the United States. Once you submit your application, the underwriting process begins. This includes an assessment of your health, age, and other risk factors. The insurance company typically has to deal with more unknowns – compared to an application from a US citizen – so the process tends to be slower. Also, premiums for non-permanent residents are often higher due to perceived additional risks.
Paying premiums as coverage starts
Assuming the underwriting process is successful, your policy will be issued. Make certain that you understand all the terms and conditions of your policy as it is issued, especially those that relate to paying premiums. Many insurers require that premiums be paid in US dollars from a US bank account. If overseas payments are accepted, make sure to account for transfer time and currency conversion fees to ensure full and timely payment of your premiums.
Getting life insurance as a foreign national in the US can be challenging but it's not impossible. The main issue is understanding how residency and immigration status impacts available options and ability to secure life insurance in a way that meets your needs.
Get help finding the right life insurance solution for your situation
If you’re a foreign national with US residency, a Guardian Financial Professional can help you explore the range of coverage options available to you. Or, if you’re a non-resident with ties to the US, ask about the Global Citizens Program.
Yes, foreign nationals can typically qualify for the same kinds of life insurance coverage as US citizens, as long as they have permanent legal resident status in the US. Non-permanent residents and visa holders will generally find it more challenging to get coverage, but certain products may be available from some providers.
Certain high-net-worth, non-resident, non-US citizens may also qualify for life insurance from a US carrier if they have substantial US-based assets and/or family members. Specialized programs, such as Guardian’s Global Citizens Program, focus on addressing the unique needs of these international clients.
Yes, most insurance companies will allow a non-US citizen, such as a family member living abroad, to be named as a beneficiary. However, that person typically must have an “insurable interest” – for example, because they are financially dependent on the policy holder.
Generally speaking, anyone who isn’t a US citizen is a foreign national. However, in order to obtain life insurance, some companies will consider a U.S. citizen living abroad to be a foreign national, as well as a green card holder who spends more than 12 weeks a year outside the US. In many cases, such people can still purchase life insurance from a US life insurance company because carriers have developed policies tailored to the needs of this market.
Available options will vary greatly depending on the insurance company and applicant’s residency status, as well as conventional factors such as age, gender, health status, and so on. However, in many cases, foreign nationals can choose the same kinds as term, whole, and universal life insurance policies available to US nationals.
As they do for all clients, an agent or broker can provide valuable guidance on the types of coverage available, the amount of coverage needed, and the best way to structure a policy to meet an individual’s needs.
But foreign nationals may not have access to the same kinds of insurance policies as others, so a knowledgeable agent or broker can provide added help by understanding the requirements of different insurance companies, finding alternative carriers if needed, and providing impartial guidance to select the most suitable coverage at a fair price.
Yes, foreign nationals can typically qualify for the same kinds of life insurance coverage as US citizens, as long as they have permanent legal resident status in the US. Non-permanent residents and visa holders will generally find it more challenging to get coverage, but certain products may be available from some providers.
Certain high-net-worth, non-resident, non-US citizens may also qualify for life insurance from a US carrier if they have substantial US-based assets and/or family members. Specialized programs, such as Guardian’s Global Citizens Program, focus on addressing the unique needs of these international clients.
Yes, most insurance companies will allow a non-US citizen, such as a family member living abroad, to be named as a beneficiary. However, that person typically must have an “insurable interest” – for example, because they are financially dependent on the policy holder.
Generally speaking, anyone who isn’t a US citizen is a foreign national. However, in order to obtain life insurance, some companies will consider a U.S. citizen living abroad to be a foreign national, as well as a green card holder who spends more than 12 weeks a year outside the US. In many cases, such people can still purchase life insurance from a US life insurance company because carriers have developed policies tailored to the needs of this market.
Available options will vary greatly depending on the insurance company and applicant’s residency status, as well as conventional factors such as age, gender, health status, and so on. However, in many cases, foreign nationals can choose the same kinds as term, whole, and universal life insurance policies available to US nationals.
As they do for all clients, an agent or broker can provide valuable guidance on the types of coverage available, the amount of coverage needed, and the best way to structure a policy to meet an individual’s needs.
But foreign nationals may not have access to the same kinds of insurance policies as others, so a knowledgeable agent or broker can provide added help by understanding the requirements of different insurance companies, finding alternative carriers if needed, and providing impartial guidance to select the most suitable coverage at a fair price.
This article is for informational purposes only. Guardian may not offer all products discussed. Please consult with a financial professional to understand what life insurance products are available for sale.
1 All whole life insurance policy guarantees are subject to the timely payment of all required premiums and the claims paying ability of the issuing insurance company. Policy loans and withdrawals affect the guarantees by reducing the policy’s death benefit and cash values.
2 Some whole life polices do not have cash values in the first two years of the policy and don’t pay a dividend until the policy’s third year. Talk to your financial representative and refer to your individual whole life policy illustration for more information.
3 Policy benefits are reduced by any outstanding loan or loan interest and/or withdrawals. Dividends, if any, are affected by policy loans and loan interest. Withdrawals above the cost basis may result in taxable ordinary income. If the policy lapses, or is surrendered, any outstanding loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), loans are treated like withdrawals, but as gain first, subject to ordinary income taxes. If the policy owner is under 59 ½, any taxable withdrawal may also be subject to a 10% federal tax penalty.
4 Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.
5 A Universal Life Insurance (UL) policy provides a flexible premium, choice of death benefit options, and a guaranteed crediting rate e.g. 2%). Policy growth is based on adequate funding, increasing crediting rates, and if costs of insurance is lower than expected. If any of the three factors just mentioned are lower than expected (policy funding and crediting rates), and/or higher than expected (cost of insurance), the policy may lapse.
This article is for informational purposes only. Guardian may not offer all products discussed. Please consult with a financial professional to understand what life insurance products are available for sale.
1 All whole life insurance policy guarantees are subject to the timely payment of all required premiums and the claims paying ability of the issuing insurance company. Policy loans and withdrawals affect the guarantees by reducing the policy’s death benefit and cash values.
2 Some whole life polices do not have cash values in the first two years of the policy and don’t pay a dividend until the policy’s third year. Talk to your financial representative and refer to your individual whole life policy illustration for more information.
3 Policy benefits are reduced by any outstanding loan or loan interest and/or withdrawals. Dividends, if any, are affected by policy loans and loan interest. Withdrawals above the cost basis may result in taxable ordinary income. If the policy lapses, or is surrendered, any outstanding loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), loans are treated like withdrawals, but as gain first, subject to ordinary income taxes. If the policy owner is under 59 ½, any taxable withdrawal may also be subject to a 10% federal tax penalty.
4 Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.
5 A Universal Life Insurance (UL) policy provides a flexible premium, choice of death benefit options, and a guaranteed crediting rate e.g. 2%). Policy growth is based on adequate funding, increasing crediting rates, and if costs of insurance is lower than expected. If any of the three factors just mentioned are lower than expected (policy funding and crediting rates), and/or higher than expected (cost of insurance), the policy may lapse.